Yahoo Finance Fastned B.V.'s (AMS:FAST) Shift From Loss To Profit
Fastned B.V. (AMS:FAST) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Fastned B.V., together with its subsidiaries, engages in the construction and operation of charging stations for fully electric cars. The €459m market-cap company posted a loss in its most recent financial year of €22m and a latest trailing-twelve-month loss of €21m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Fastned B.V 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.
See our latest analysis for Fastned B.V
According to the 9 industry analysts covering Fastned B.V, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of €6.3m in 2025. The company is therefore projected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 74% is expected, 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 Fastned B.V's growth isn’t the focus of this broad overview, but, keep in mind that generally 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 Fastned B.V is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Fastned B.V's case is 87%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Fastned B.V to cover in one brief article, but the key fundamentals for the company can all be found in one place – Fastned B.V's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:
Historical Track Record: What has Fastned B.V's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Fastned B.V'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.
