We feel now is a pretty good time to analyse CEVA, Inc.'s (NASDAQ:CEVA) business as it appears the company may be on the cusp of a considerable accomplishment. CEVA, Inc. provides silicon and software intellectual property (IP) solutions to semiconductor and original equipment manufacturer companies in the United States, Europe, the Middle East, the Asia Pacific, and internationally. The company’s loss has recently broadened since it announced a US$8.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$11m, moving it further away from breakeven. Many investors are wondering about the rate at which CEVA 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.

Consensus from 5 of the American Semiconductor analysts is that CEVA is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$5.4m in 2027. The company is therefore projected to breakeven just over a year 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 94% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving CEVA's growth isn’t the focus of this broad overview, but, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that CEVA has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

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

1. Valuation: What is CEVA 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 CEVA 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 CEVA’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.

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.