Yahoo Finance Flux Power Holdings, Inc.'s (NASDAQ:FLUX) Profit Outlook
We feel now is a pretty good time to analyse Flux Power Holdings, Inc.'s (NASDAQ:FLUX) business as it appears the company may be on the cusp of a considerable accomplishment. Flux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the North America. The US$68m market-cap company’s loss lessened since it announced a US$16m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$14m, as it approaches breakeven. As path to profitability is the topic on Flux Power Holdings' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for Flux Power Holdings
Flux Power Holdings is bordering on breakeven, according to the 3 American Electrical analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$928k in 2024. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 67% year-on-year, on average, 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 Flux Power Holdings' upcoming projects, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one issue worth mentioning. Flux Power Holdings currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Flux Power Holdings' case is 48%. 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 Flux Power Holdings, so if you are interested in understanding the company at a deeper level, take a look at Flux Power Holdings' company page on Simply Wall St. We've also compiled a list of important factors you should further examine:
Valuation: What is Flux Power Holdings 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 Flux Power Holdings 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 Flux Power Holdings’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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