Complete Solaria, Inc.'s (NASDAQ:CSLR) Path To Profitability

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With the business potentially at an important milestone, we thought we'd take a closer look at Complete Solaria, Inc.'s (NASDAQ:CSLR) future prospects. Complete Solaria, Inc. provides custom solar solutions in the United States. The US$79m market-cap company posted a loss in its most recent financial year of US$96m and a latest trailing-twelve-month loss of US$97m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Complete Solaria will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Complete Solaria

Consensus from 2 of the American Electrical analysts is that Complete Solaria is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$18m 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 93% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Complete Solaria's upcoming projects, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. Complete Solaria currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

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

  1. Historical Track Record: What has Complete Solaria'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 Complete Solaria'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.