FTC Solar, Inc. (NASDAQ:FTCI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. FTC Solar, Inc. provides solar tracker systems, technology, software, and engineering services in the United States, Vietnam, and internationally. With the latest financial year loss of US$16m and a trailing-twelve-month loss of US$27m, the US$834m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on FTC Solar'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 FTC Solar

Consensus from 7 of the American Electrical analysts is that FTC Solar is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$46m in 2022. Therefore, the company is expected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 58% 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.

We're not going to go through company-specific developments for FTC Solar given that this is a high-level summary, however, keep in mind that generally 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 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 FTC Solar to cover in one brief article, but the key fundamentals for the company can all be found in one place – FTC Solar's company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

1. Valuation: What is FTC Solar 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 FTC Solar 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 FTC Solar’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.

This article by Simply Wall St is general in nature. 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.

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