Xometry, Inc.'s (NASDAQ:XMTR) Profit Outlook
With the business potentially at an important milestone, we thought we'd take a closer look at Xometry, Inc.'s (NASDAQ:XMTR) future prospects. Xometry, Inc. operates an online marketplace that enables buyers to source manufactured parts and assemblies in the United States and internationally. The US$765m market-cap company posted a loss in its most recent financial year of US$76m and a latest trailing-twelve-month loss of US$81m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Xometry's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Xometry
Consensus from 9 of the American Trade Distributors analysts is that Xometry is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$9.2m in 2025. So, the company is predicted to breakeven approximately 2 years from today. 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 93%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Xometry's upcoming projects, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Xometry is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Xometry's case is 83%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Xometry, so if you are interested in understanding the company at a deeper level, take a look at Xometry's company page on Simply Wall St. We've also put together a list of important aspects you should further research:
Valuation: What is Xometry 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 Xometry 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 Xometry’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.
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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.
