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. Many investors are wondering about the rate at which Wallbox will turn a profit, with the big question being "when will the company breakeven?" We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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. 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 71% is expected, 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.

We're not going to go through company-specific developments for Wallbox given that this is a high-level summary, however, bear in mind 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. Note that a higher debt obligation 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 compiled a list of essential 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.