Yahoo Finance Analysts Expect Breakeven For GreenPower Motor Company Inc. (CVE:GPV) Before Long
We feel now is a pretty good time to analyse GreenPower Motor Company Inc.'s (CVE:GPV) business as it appears the company may be on the cusp of a considerable accomplishment. GreenPower Motor Company Inc. designs, manufactures, and distributes electric vehicles for commercial markets in the United States and Canada. The company’s loss has recently broadened since it announced a US$15m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$18m, moving it further away from breakeven. The most pressing concern for investors is GreenPower Motor's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for GreenPower Motor
According to the 6 industry analysts covering GreenPower Motor, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$5.3m in 2025. The company is therefore projected to breakeven around 3 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 83% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for GreenPower Motor given that this is a high-level summary, but, keep in mind that by and large 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 aspect worth mentioning. The company has managed its capital prudently, with debt making up 38% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of GreenPower Motor to cover in one brief article, but the key fundamentals for the company can all be found in one place – GreenPower Motor's company page on Simply Wall St. We've also put together a list of important aspects you should further research:
Historical Track Record: What has GreenPower Motor'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 GreenPower Motor'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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