NeoVolta Inc. (NASDAQ:NEOV) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. The US$113m market-cap company announced a latest loss of US$2.3m on 30 June 2024 for its most recent financial year result. The most pressing concern for investors is NeoVolta'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.

Check out our latest analysis for NeoVolta

Expectations from some of the American Electrical analysts is that NeoVolta is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$200k in 2027. Therefore, the company is expected to breakeven roughly 3 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 82%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of NeoVolta's upcoming projects, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that NeoVolta has no debt on its balance sheet, which is quite unusual for a cash-burning 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 NeoVolta 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 NeoVolta, take a look at NeoVolta's company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:

1. Historical Track Record: What has NeoVolta'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on NeoVolta's board and the CEO’s background.
3. 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.