Pioneer Power Solutions, Inc. (NASDAQ:PPSI): When Will It Breakeven?
Pioneer Power Solutions, Inc. (NASDAQ:PPSI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Pioneer Power Solutions, Inc., together with its subsidiaries, designs, manufactures, sells, and services electric power systems, distributed energy resources, used and new power generation equipment, and mobile EV charging solutions in the United States, Canada, and internationally. The company’s loss has recently broadened since it announced a US$2.2m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$3.3m, moving it further away from breakeven. Many investors are wondering about the rate at which Pioneer Power Solutions will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Pioneer Power Solutions
Pioneer Power Solutions is bordering on breakeven, according to some American Electrical analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$2.0m in 2024. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 70%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Pioneer Power Solutions' growth isn’t the focus of this broad overview, however, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. Pioneer Power Solutions currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of Pioneer Power Solutions which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Pioneer Power Solutions, take a look at Pioneer Power Solutions' company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:
Valuation: What is Pioneer Power Solutions worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Pioneer Power Solutions is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Pioneer Power Solutions’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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