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We think now is the right time to analyze Lightning eMotors, Inc. (NYSE: ZEV) because it looks like the company is on the cusp of a huge accomplishment. Lightning eMotors, Inc. designs, manufactures, and sells electric vehicles. The US $ 850 million market-capitalization company recorded a loss in its last fiscal year of US $ 41 million and a last twelve-month loss of US $ 66 million, resulting in an even larger spread. important between loss and breakeven point. As the path to profitability is the topic in the minds of Lightning eMotors investors, we decided to assess market sentiment. Below, we’ll provide a high-level summary of industry analyst expectations for the company.
See our latest review for Lightning eMotors
The consensus of 4 of American Machinery analysts is that Lightning eMotors is on the verge of breaking even. They predict that the company will experience a terminal loss in 2022, before generating positive profits of US $ 19 million in 2023. Thus, the company is expected to break even in about 2 years. How fast will the company have to grow from one year to the next to reach equilibrium on that date? Using a line of best fit, we calculated an average annual growth rate of 76%, indicating a high level of analyst confidence. If the business grows at a slower pace, it will become profitable later than expected.
Since this is a high-level preview, we won’t go into details of upcoming Lightning eMotors projects, however, keep in mind that a high predicted growth rate is not expected. generally not unusual for a company that is currently going through a period of investment.
Before concluding, there is one problem worth mentioning. Lightning eMotors currently has negative equity on its balance sheet. The accounting methods used to deal with losses accumulated over time can cause this. In effect, liabilities are carried forward until their cancellation. These losses tend to occur only on paper, however, in other cases this can be a warning.
Next steps:
This article is not intended to be a full review on Lightning eMotors, so if you want to understand the business on a deeper level, take a look at the Lightning eMotors business page on Simply Wall St. We also have made a list of the relevant aspects that you should consider:
- Evaluation: What is Lightning eMotors worth today? Has the potential for future growth already been factored into the price? The intrinsic value infographic in our free research report helps to visualize whether Lightning eMotors is currently being poorly valued by the market.
- Management team: An experienced management team at the helm increases our confidence in the company – take a look at the Lightning eMotors board members and the CEO’s background.
- Other high performing stocks: Are there other stocks that offer better prospects with a proven track record? Check out our free list of these great stocks here.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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