EHang Holdings Limited's (NASDAQ:EH) Has Found A Path To Profitability
NASDAQ:EH) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. EHang Holdings Limited operates as an autonomous aerial vehicle (AAV) technology platform company in the People’s Republic of China, Europe, North America, West Asia, and internationally. The US$458m market-cap company’s loss lessened since it announced a CN¥75.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of CN¥74.7m, as it approaches breakeven. As path to profitability is the topic on EHang Holdings’ 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.” data-reactid=”28″>EHang Holdings Limited (NASDAQ:EH) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. EHang Holdings Limited operates as an autonomous aerial vehicle (AAV) technology platform company in the People’s Republic of China, Europe, North America, West Asia, and internationally. The US$458m market-cap company’s loss lessened since it announced a CN¥75.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of CN¥74.7m, as it approaches breakeven. As path to profitability is the topic on EHang Holdings’ 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.
View our latest analysis for EHang Holdings ” data-reactid=”29″> View our latest analysis for EHang Holdings
Consensus from 2 of the American Aerospace & Defense analysts is that EHang Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2019, before generating positive profits of CN¥58m in 2020. So, the company is predicted to breakeven approximately a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 187%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of EHang Holdings’ upcoming projects, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 12% 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:
EHang Holdings’ company page on Simply Wall St. We’ve also compiled a list of key aspects you should further examine:” data-reactid=”50″>This article is not intended to be a comprehensive analysis on EHang Holdings, so if you are interested in understanding the company at a deeper level, take a look at EHang Holdings’ company page on Simply Wall St. We’ve also compiled a list of key aspects you should further examine:
- Historical Track Record: What has EHang Holdings’ performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on EHang Holdings’ 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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>This article by Simply Wall St is general in nature. 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.
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