We feel now is a pretty good time to analyse Aston Martin Lagonda Global Holdings plc's (LON:AML) business as it appears the company may be on the cusp of a considerable accomplishment. Aston Martin Lagonda Global Holdings plc engages in the design, development, manufacture, and marketing of luxury sports cars worldwide. The UK￡1.3b market-cap company posted a loss in its most recent financial year of UK￡228m and a latest trailing-twelve-month loss of UK￡293m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Aston Martin Lagonda Global Holdings' 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.

See our latest analysis for Aston Martin Lagonda Global Holdings

Aston Martin Lagonda Global Holdings is bordering on breakeven, according to the 9 British Auto analysts. They expect the company to post a final loss in 2025, before turning a profit of UK￡75m in 2026. Therefore, the company is expected to breakeven roughly 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 106%, 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 Aston Martin Lagonda Global Holdings' growth isn’t the focus of this broad overview, though, keep in mind that by and large 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 issue worth mentioning. Aston Martin Lagonda Global Holdings currently has a debt-to-equity ratio of 161%. 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 in investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Aston Martin Lagonda Global Holdings 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 Aston Martin Lagonda Global Holdings 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 Aston Martin Lagonda Global Holdings’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.