In This Article:
With the business potentially at an important milestone, we thought we'd take a closer look at KVH Industries, Inc.'s (NASDAQ:KVHI) future prospects. KVH Industries, Inc., together with its subsidiaries, designs, develops, manufactures, and markets mobile connectivity solutions for the marine and land markets in the United States, and internationally. On 31 December 2024, the US$108m market-cap company posted a loss of US$11m for its most recent financial year. Many investors are wondering about the rate at which KVH Industries 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.
According to some industry analysts covering KVH Industries, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$970k in 2026. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 124% year-on-year, on average, 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 KVH Industries' growth isn’t the focus of this broad overview, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
See our latest analysis for KVH Industries
One thing we’d like to point out is that KVH Industries has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high 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 KVH Industries to cover in one brief article, but the key fundamentals for the company can all be found in one place – KVH Industries' company page on Simply Wall St. We've also put together a list of key factors you should look at:
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Valuation: What is KVH Industries 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 KVH Industries is currently mispriced by the market.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on KVH Industries’s board and the CEO’s background.
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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.
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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.