We feel now is a pretty good time to analyse Gauzy Ltd.'s (NASDAQ:GAUZ) business as it appears the company may be on the cusp of a considerable accomplishment. Gauzy Ltd., an integrated light and vision control company, develops, manufactures, and supplies liquid crystal controllers and films in Israel, the United States, Europe, France, Asia, and internationally. The US$200m market-cap company posted a loss in its most recent financial year of US$79m and a latest trailing-twelve-month loss of US$63m shrinking the gap between loss and breakeven. As path to profitability is the topic on Gauzy's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Gauzy

Gauzy is bordering on breakeven, according to the 2 American Electronic analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$38m in 2026. Therefore, the company is expected to breakeven just over a year 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 91% is expected, which signals high confidence from analysts. 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 Gauzy given that this is a high-level summary, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Gauzy is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Gauzy's case is 63%. 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 key fundamentals of Gauzy which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Gauzy, take a look at Gauzy's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Valuation: What is Gauzy 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 Gauzy 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 Gauzy’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.