Market Sentiment Around Loss-Making Wallbox N.V. (NYSE:WBX)

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Wallbox N.V. (NYSE:WBX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Wallbox N.V., a technology company, designs, manufactures, and distributes charging solutions for residential, business, and public use worldwide. The US$242m market-cap company’s loss lessened since it announced a €112m loss in the full financial year, compared to the latest trailing-twelve-month loss of €100m, as it approaches breakeven. Many investors are wondering about the rate at which Wallbox will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Wallbox

According to the 4 industry analysts covering Wallbox, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of €15m in 2026. Therefore, the company is expected to breakeven roughly 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 70% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
NYSE:WBX Earnings Per Share Growth November 8th 2024

Given this is a high-level overview, we won’t go into details of Wallbox's upcoming projects, though, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Wallbox is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

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

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

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