Mobileye Global Inc. (NASDAQ:MBLY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Mobileye Global Inc. engages in the development and deployment of advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions worldwide. With the latest financial year loss of US$75m and a trailing-twelve-month loss of US$165m, the US$27b market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Mobileye Global will turn a profit, with the big question being "when will the company breakeven?" In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for Mobileye Global
Mobileye Global is bordering on breakeven, according to the 16 American Auto Components analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$706m in 2024. Therefore, the company is expected to breakeven just over a year from now. 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 Mobileye Global's upcoming projects, though, 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. Mobileye Global currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of Mobileye Global which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Mobileye Global, take a look at Mobileye Global's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:
Valuation: What is Mobileye Global 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 Mobileye Global 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 Mobileye Global'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.
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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.
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