We feel now is a pretty good time to analyse Wallbox N.V.'s (NYSE:WBX) business as it appears the company may be on the cusp of a considerable accomplishment. Wallbox N.V., a technology company, designs, manufactures, and distributes charging solutions for residential, business, and public applications in Europe, the Middle East, Asia, North America, and the Asia Pacific. With the latest financial year loss of €149m and a trailing-twelve-month loss of €103m, the US$47m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Wallbox will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Wallbox is bordering on breakeven, according to the 2 American Electrical analysts. They expect the company to post a final loss in 2027, before turning a profit of €21m in 2028. The company is therefore projected to breakeven around 2 years 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 64%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

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

One thing we would like to bring into light with Wallbox is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Wallbox which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Wallbox, take a look at Wallbox's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Historical Track Record: What has Wallbox'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 Wallbox'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.