With the business potentially at an important milestone, we thought we'd take a closer look at NeoVolta Inc.'s (NASDAQ:NEOV) future prospects. NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. The US$73m market-cap company posted a loss in its most recent financial year of US$2.3m and a latest trailing-twelve-month loss of US$3.3m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is NeoVolta's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Expectations from some of the American Electrical analysts is that NeoVolta is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$100k in 2026. So, the company is predicted to breakeven just over a year 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 101%, which is extremely buoyant. 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 NeoVolta given that this is a high-level summary, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for NeoVolta

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 19% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

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

1. Historical Track Record: What has NeoVolta's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on NeoVolta'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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.