We feel now is a pretty good time to analyse Electrovaya Inc.'s (TSE:ELVA) business as it appears the company may be on the cusp of a considerable accomplishment. Electrovaya Inc. engages in the design, development, manufacture, and sale of lithium-ion batteries, battery management systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications in North America. The company’s loss has recently broadened since it announced a US$1.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$1.7m, moving it further away from breakeven. As path to profitability is the topic on Electrovaya's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Electrovaya

According to the 6 industry analysts covering Electrovaya, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$3.8m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 48% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Electrovaya given that this is a high-level summary, but, keep in mind that typically 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 issue worth mentioning. Electrovaya currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Electrovaya's case is 76%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Electrovaya 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 Electrovaya, take a look at Electrovaya's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:

1. Valuation: What is Electrovaya 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 Electrovaya is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Electrovaya’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.

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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.