Analysts Are Optimistic We'll See A Profit From NBR Motion Co., Ltd. (KOSDAQ:0004V0)
We feel now is a pretty good time to analyse NBR Motion Co., Ltd.'s (KOSDAQ:0004V0) business as it appears the company may be on the cusp of a considerable accomplishment. NBR Motion Co., Ltd. manufactures steel ball and tapered roller for precise ball bearings, automobile, electronic, machinery, and automation industries. The company’s loss has recently broadened since it announced a ₩12b loss in the full financial year, compared to the latest trailing-twelve-month loss of ₩14b, moving it further away from breakeven. The most pressing concern for investors is NBR Motion's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
According to the 2 industry analysts covering NBR Motion, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of ₩10b in 2026. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 78% year-on-year, on average, which is extremely buoyant. 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 NBR Motion's upcoming projects, though, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Check out our latest analysis for NBR Motion
One thing we would like to bring into light with NBR Motion is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in NBR Motion's case is 77%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on NBR Motion, so if you are interested in understanding the company at a deeper level, take a look at NBR Motion's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:
- Valuation: What is NBR Motion 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 NBR Motion is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on NBR Motion’s board and the CEO’s background.
- 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.