We feel now is a pretty good time to analyse Flux Power Holdings, Inc.'s (NASDAQ:FLUX) business as it appears the company may be on the cusp of a considerable accomplishment. Flux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the North America. The company’s loss has recently broadened since it announced a US$6.7m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$7.0m, moving it further away from breakeven. Many investors are wondering about the rate at which Flux Power Holdings will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Flux Power Holdings

Consensus from 5 of the American Electrical analysts is that Flux Power Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$4.4m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 53% is expected, which is extremely buoyant. 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 Flux Power Holdings given that this is a high-level summary, but, take into account 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 Flux Power Holdings is its debt-to-equity ratio of over 2x. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. 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 Flux Power Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Flux Power Holdings' company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

1. Valuation: What is Flux Power 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 Flux Power 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 Flux Power 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.