With the business potentially at an important milestone, we thought we'd take a closer look at Orbbec Inc.'s (SHSE:688322) future prospects. Orbbec Inc. designs, manufactures, and sells 3D vision sensors. With the latest financial year loss of CN¥276m and a trailing-twelve-month loss of CN¥237m, the CN¥11b market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Orbbec's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Orbbec is bordering on breakeven, according to the 3 Chinese Electronic analysts. They expect the company to post a final loss in 2024, before turning a profit of CN¥24m in 2025. So, the company is predicted 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 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 107% 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.

Given this is a high-level overview, we won't go into details of Orbbec's upcoming projects, however, 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.

One thing we'd like to point out is that The company has managed its capital prudently, with debt making up 7.2% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Orbbec to cover in one brief article, but the key fundamentals for the company can all be found in one place – Orbbec's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:

1. Historical Track Record: What has Orbbec'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 Orbbec'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.