Analysts Expect Windar Photonics PLC (LON:WPHO) To Breakeven Soon

With the business potentially at an important milestone, we thought we'd take a closer look at Windar Photonics PLC's (LON:WPHO) future prospects. Windar Photonics PLC, through its subsidiaries, develops light detection and ranging wind sensors, and related software suite for use on electricity generating wind turbines in Europe, China, the Americas, and rest of Asia. With the latest financial year loss of €906k and a trailing-twelve-month loss of €1.3m, the UK£45m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Windar Photonics' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Consensus from 2 of the British Electronic analysts is that Windar Photonics is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of €2.7m in 2026. So, the company is predicted to breakeven approximately a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 173%, 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 Windar Photonics' growth isn’t the focus of this broad overview, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Windar Photonics

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 11% 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:

This article is not intended to be a comprehensive analysis on Windar Photonics, so if you are interested in understanding the company at a deeper level, take a look at Windar Photonics' company page on Simply Wall St. We've also put together a list of relevant factors you should further research:

1. Valuation: What is Windar Photonics 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 Windar Photonics 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 Windar Photonics’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.