SmartRent, Inc. (NYSE:SMRT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. SmartRent, Inc., an enterprise real estate technology company, provides management software and applications to rental property owners and operators, property managers, homebuilders, developers, and residents in the United States. The US$609m market-cap company posted a loss in its most recent financial year of US$96m and a latest trailing-twelve-month loss of US$53m shrinking the gap between loss and breakeven. As path to profitability is the topic on SmartRent'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.

See our latest analysis for SmartRent

Consensus from 8 of the American Electronic analysts is that SmartRent is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$4.5m in 2024. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 116% year-on-year, on average, 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 SmartRent's upcoming projects, though, bear in mind that generally 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 aspect worth mentioning. SmartRent currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high 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 too many aspects of SmartRent to cover in one brief article, but the key fundamentals for the company can all be found in one place – SmartRent's company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:

1. Valuation: What is SmartRent 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 SmartRent 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 SmartRent'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.