Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Maxeon Solar Technologies, Ltd. designs, manufactures, markets, and sells solar panels and related solar system components worldwide. The US$339m market-cap company posted a loss in its most recent financial year of US$267m and a latest trailing-twelve-month loss of US$165m shrinking the gap between loss and breakeven. The most pressing concern for investors is Maxeon Solar Technologies' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Maxeon Solar Technologies

Consensus from 9 of the American Semiconductor analysts is that Maxeon Solar Technologies is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$67m in 2026. So, the company is predicted to breakeven approximately 2 years from today. 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 52%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won't go into details of Maxeon Solar Technologies' upcoming projects, but, bear in mind that typically 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 Maxeon Solar Technologies is its debt-to-equity ratio of over 2x. 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 in investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Maxeon Solar Technologies 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 Maxeon Solar Technologies 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 Maxeon Solar Technologies'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.