Forsee Power Limited Company (EPA:FORSE): Is balance close?

Forsee Power Limited Company (EPA:FORSE) may be on the verge of reaching a major achievement in its business, which is why we would like to shine a spotlight on the company. Forsee Power Limited Company, with its subsidiaries, is engaged in the design, manufacturing and integration of battery systems for electromobility in France, Europe, Asia, the United States and internationally. As of December 31, 2023, the company capitalized at €64 million posted a loss of €28 million for its last financial year. With the path to profitability top of mind for Forsee Power Corporation investors, we decided to gauge market sentiment. In this article, we'll discuss expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Forsee Power Société Anonyme

Forsee Power Société Anonyme is close to breakeven, according to two analysts from French Machinery. They predict that the company will make a final loss in 2025, before generating positive profits of €2.8 million in 2026. The company is therefore expected to break even within around 2 years. At what rate will the company need to grow year over year to break even by that date? Using a line of best fit, we calculated an average annual growth rate of 70%, which is quite optimistic! If the business grows at a slower rate, it will become profitable later than expected.

We are not going to review company specific developments for Forsee Power Limited Company given that this is a high-level summary, however, take into account that a high expected growth rate is generally not unusual for a company currently undergoing a period of investment.

What we want to highlight with Forsee Power Société Anonyme is its relatively high level of debt. As a general rule, debt should not exceed 40% of your equity, which in the case of Forsee Power Limited Company is 83%. Note that a higher debt security increases the risk of investing in a loss-making company.

Next steps:

Some key fundamentals of Forsee Power Limited Company are not covered in this article, but we must emphasize again that this is just a basic overview. For a more comprehensive overview of Forsee Power Limited Company, visit the Forsee Power Limited Company company page on Simply Wall St. We have also compiled a list of relevant factors you should further research:

1. Historical: What has been the past performance of Forsee Power Limited Company? Go into more detail into the past track record analysis and take a look at the free visual representations of our analysis for further clarity.
2. Management team: An experienced management team at the helm increases our confidence in the company – take a look at the board members of Forsee Power Limited Company and the CEO's background.
3. Other high-performing stocks: Are there other actions offering better prospects and having proven their worth? Check out our free list of these great titles here.

Any feedback on this article? Worried about the content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Any feedback on this article? Worried about the content? Contact us directly. You can also email [email protected]