We feel now is a pretty good time to analyse Fastned B.V.'s (AMS:FAST) business as it appears the company may be on the cusp of a considerable accomplishment. Fastned B.V., together with its subsidiaries, engages in the construction and operation of charging stations for fully electric cars. With the latest financial year loss of €19m and a trailing-twelve-month loss of €20m, the €379m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Fastned B.V 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.

Check out our latest analysis for Fastned B.V

According to the 9 industry analysts covering Fastned B.V, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of €55m in 2027. The company is therefore projected to breakeven around 2 years from now. 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 56%, 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 Fastned B.V's upcoming projects, however, bear 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.

One thing we would like to bring into light with Fastned B.V is its debt-to-equity ratio of 154%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Fastned B.V, so if you are interested in understanding the company at a deeper level, take a look at Fastned B.V's company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

1. 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.
2. 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.
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.