With the business potentially at an important milestone, we thought we'd take a closer look at Fastned B.V.'s ( AMS:FAST )future prospects. Fastned B.V., together with its subsidiaries, engages in the construction and operation of charging stations for fully electric and hybrid cars. With the latest financial year loss of €27m and a trailing-twelve-month loss of €34m, the €433m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Fastned B.V's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Consensus from 8 of the Dutch Specialty Retail analysts is that Fastned B.V is on the verge of breakeven. They anticipate the company to incur a final loss in 2027, before generating positive profits of €51m in 2028. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2028? Working backwards from analyst estimates, it turns out that they expect the company to grow 39% 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 Fastned B.V given that this is a high-level summary, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
See our latest analysis for Fastned B.V
Before we wrap up, there's one issue worth mentioning. Fastned B.V currently has a debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in 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 put together a list of pertinent aspects you should further research:
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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.
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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 .
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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.
