Modiv Industrial, Inc. (NYSE:MDV) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Modiv Industrial, Inc. is an internally managed REIT that is focused on single-tenant net-lease industrial manufacturing real estate. With the latest financial year loss of US$10m and a trailing-twelve-month loss of US$584k, the US$157m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Modiv Industrial's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Modiv Industrial

According to the 2 industry analysts covering Modiv Industrial, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$18k in 2025. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow -71% year-on-year, on average,

We're not going to go through company-specific developments for Modiv Industrial given that this is a high-level summary, though, bear in mind that generally periods of lower growth in the upcoming years 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 Modiv Industrial is its debt-to-equity ratio of 132%. Typically, 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 around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Modiv Industrial, so if you are interested in understanding the company at a deeper level, take a look at Modiv Industrial's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:

1. Valuation: What is Modiv Industrial 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 Modiv Industrial 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 Modiv Industrial’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.