We feel now is a pretty good time to analyse Wallbox N.V.'s (NYSE:WBX) business as it appears the company may be on the cusp of a considerable accomplishment. Wallbox N.V., a technology company, designs, manufactures, and distributes charging solutions for residential, business, and public use worldwide. On 31 December 2023, the US$303m market-cap company posted a loss of €112m for its most recent financial year. As path to profitability is the topic on Wallbox'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.

See our latest analysis for Wallbox

Wallbox is bordering on breakeven, according to the 6 American Electrical analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of €10m in 2026. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 71% 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.

Underlying developments driving Wallbox's growth isn’t the focus of this broad overview, but, take into account 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 issue worth mentioning. Wallbox currently has a debt-to-equity ratio of 138%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Wallbox which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Wallbox, take a look at Wallbox's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

1. Valuation: What is Wallbox 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 Wallbox 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 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.

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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.