With the business potentially at an important milestone, we thought we'd take a closer look at PowerFleet, Inc.'s (NASDAQ:AIOT) future prospects. PowerFleet, Inc. provides Internet-of-Things solutions in the United States, Israel, and internationally. The company’s loss has recently broadened since it announced a US$79m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$90m, moving it further away from breakeven. As path to profitability is the topic on PowerFleet'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 PowerFleet

PowerFleet is bordering on breakeven, according to the 7 American Electronic analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$39m in 2026. Therefore, the company is expected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 142% year-on-year, on average, which signals high confidence from analysts. 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 PowerFleet's upcoming projects, but, 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.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 32% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of PowerFleet 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 PowerFleet, take a look at PowerFleet'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 PowerFleet 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 PowerFleet 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 PowerFleet’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.