EBRO EV Motors, S.A. (BME:EBROM) Is Expected To Breakeven In The Near Future

We feel now is a pretty good time to analyse EBRO EV Motors, S.A.'s (BME:EBROM) business as it appears the company may be on the cusp of a considerable accomplishment. EBRO EV Motors, S.A. engages in research and development, manufacturing, and sales of electric vehicles under the EBRO brand in Spain. The €446m market-cap company announced a latest loss of €24m on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is EBRO EV Motors' 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.

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EBRO EV Motors is bordering on breakeven, according to the 2 Spanish Auto analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of €17m in 2027. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 63% year-on-year, on average, 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 EBRO EV Motors' growth isn’t the focus of this broad overview, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for EBRO EV Motors

Before we wrap up, there’s one issue worth mentioning. EBRO EV Motors currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in EBRO EV Motors' case is 44%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

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

1. Valuation: What is EBRO EV Motors 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 EBRO EV Motors 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 EBRO EV Motors’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.