We feel now is a pretty good time to analyse Arbe Robotics Ltd.'s (NASDAQ:ARBE) business as it appears the company may be on the cusp of a considerable accomplishment. Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in Israel and the United States. The US$287m market-cap company's loss lessened since it announced a US$58m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$45m, as it approaches breakeven. The most pressing concern for investors is Arbe Robotics' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.

Check out our latest analysis for Arbe Robotics

Arbe Robotics is bordering on breakeven, according to the 5 American Electronic analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$36m in 2024. So, the company is predicted to breakeven just over a year 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 93% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Arbe Robotics' growth isn't the focus of this broad overview, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we'd like to point out is that Arbe Robotics 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:

There are too many aspects of Arbe Robotics to cover in one brief article, but the key fundamentals for the company can all be found in one place – Arbe Robotics' company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Valuation: What is Arbe Robotics 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 Arbe Robotics 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 Arbe Robotics'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.