Yahoo Finance Symbotic Inc. (NASDAQ:SYM) Is Expected To Breakeven In The Near Future
Symbotic Inc. (NASDAQ:SYM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Symbotic Inc., an automation technology company, provides robotics and technology to improve efficiency for retailers and wholesalers in the United States. With the latest financial year loss of US$155m and a trailing-twelve-month loss of US$156m, the US$8.7b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Symbotic's path to profitability – when will it breakeven? 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 Symbotic
Consensus from 8 of the American Machinery analysts is that Symbotic is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$14m in 2023. 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 93% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Symbotic's growth isn’t the focus of this broad overview, however, take into account that generally 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 issue worth mentioning. Symbotic currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
This article is not intended to be a comprehensive analysis on Symbotic, so if you are interested in understanding the company at a deeper level, take a look at Symbotic's company page on Simply Wall St. We've also compiled a list of essential factors you should further research:
Valuation: What is Symbotic 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 Symbotic 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 Symbotic’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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
