We feel now is a pretty good time to analyse Zapp Electric Vehicles Group Limited's (NASDAQ:ZAPP) business as it appears the company may be on the cusp of a considerable accomplishment. Zapp Electric Vehicles Group Limited designs, manufactures, and sells electric vehicles. The US$11m market-cap company posted a loss in its most recent financial year of US$222m and a latest trailing-twelve-month loss of US$219m shrinking the gap between loss and breakeven. As path to profitability is the topic on Zapp Electric Vehicles Group's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Zapp Electric Vehicles Group

Consensus from 3 of the American Auto analysts is that Zapp Electric Vehicles Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$11m in 2026. So, the company is predicted to breakeven approximately 2 years from today. 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 118% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Zapp Electric Vehicles Group's upcoming projects, however, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Zapp Electric Vehicles Group currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Zapp Electric Vehicles Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Zapp Electric Vehicles Group's company page on Simply Wall St. We've also compiled a list of essential factors you should look at:

1. Valuation: What is Zapp Electric Vehicles Group 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 Zapp Electric Vehicles Group 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 Zapp Electric Vehicles Group’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.

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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.