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Mobileye Global Inc. (NASDAQ:MBLY): When Will It Breakeven?

Simply Wall St ·  Sep 9 14:16

With the business potentially at an important milestone, we thought we'd take a closer look at Mobileye Global Inc.'s (NASDAQ:MBLY) future prospects. Mobileye Global Inc. develops and deploys advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions worldwide. The company's loss has recently broadened since it announced a US$27m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$224m, moving it further away from breakeven. The most pressing concern for investors is Mobileye Global's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Mobileye Global is bordering on breakeven, according to the 26 American Auto Components analysts. They expect the company to post a final loss in 2025, before turning a profit of US$130m in 2026. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 53% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

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NasdaqGS:MBLY Earnings Per Share Growth September 9th 2024

Given this is a high-level overview, we won't go into details of Mobileye Global's upcoming projects, but, take into account 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'd like to point out is that Mobileye Global 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. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Mobileye Global, so if you are interested in understanding the company at a deeper level, take a look at Mobileye Global's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:

  1. Valuation: What is Mobileye Global 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 Mobileye Global 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 Mobileye Global'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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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