With the business potentially at an important milestone, we thought we'd take a closer look at Allego N.V.'s (NYSE:ALLG) future prospects. Allego N.V. operates as an electric vehicle (EV) charging company. The US$847m market-cap company posted a loss in its most recent financial year of €320m and a latest trailing-twelve-month loss of €361m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Allego 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.

Check out our latest analysis for Allego

Allego is bordering on breakeven, according to the 6 American Specialty Retail analysts. They expect the company to post a final loss in 2024, before turning a profit of €61m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 63%, which is rather optimistic! 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 Allego given that this is a high-level summary, but, keep in mind that by and large 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. Allego currently has a debt-to-equity ratio of over 2x. Typically, debt shouldn't exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Allego 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 Allego, take a look at Allego's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

1. Valuation: What is Allego 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 Allego 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 Allego'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.