We feel now is a pretty good time to analyse MicroVision, Inc.'s (NASDAQ:MVIS) business as it appears the company may be on the cusp of a considerable accomplishment. MicroVision, Inc. develops lidar sensors used in automotive safety and autonomous driving applications. The US$884m market-cap company posted a loss in its most recent financial year of US$43m and a latest trailing-twelve-month loss of US$49m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which MicroVision 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.

Check out our latest analysis for MicroVision

MicroVision is bordering on breakeven, according to some American Electronic analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$92m in 2024. Therefore, the company is expected to breakeven roughly 2 years from now. 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 57%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for MicroVision given that this is a high-level summary, but, take into account 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 aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.009% 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 MicroVision, so if you are interested in understanding the company at a deeper level, take a look at MicroVision's company page on Simply Wall St. We've also put together a list of essential factors you should look at:

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

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