Full Truck Alliance Co. Ltd. (NYSE:YMM) may be approaching a major achievement in his company, so we’d like to shed some light on the company. Full Truck Alliance Co. Ltd., together with its subsidiaries, operates a digital freight platform that connects shippers with truckers to facilitate shipments of distances, weights and types of freight in the People’s Republic of China. The US$9.7 billion market-cap company’s loss has narrowed since reporting a full-year loss of 4.2 billion Canadian yen, compared to the last loss on the past twelve months of 3.9 billion national yen, approaching breakeven. The most pressing concern for investors is Full Truck Alliance’s path to profitability – when will it break even? Below, we’ll provide a high-level summary of industry analysts’ expectations for the company.
Full Truck Alliance is close to breaking even, according to the 6 American Transportation analysts. They expect the business to incur a terminal loss in 2022, before generating positive profits of 773 million Canadian yen in 2023. Therefore, the business is expected to break even in just over a year from today. How fast will the business need to grow each year to break even by 2023? Working backwards from analysts’ estimates, it turns out that they expect the company to grow 96% year-over-year, on average, which is extremely dynamic. If the business grows at a slower rate, it will become profitable later than expected.
We are not going to review company specific developments for Full Truck Alliance as this is a high level summary, however, please consider that in general a rate of growth high is not unusual, particularly when a company is in a period of investment.
One thing we would like to point out is that the company has managed its capital wisely, with debt representing 0.03% of equity. This means that it has mainly financed its operations from equity and that its low indebtedness reduces the risk associated with investing in the loss-making company.
This article is not intended to be a full analysis of Full Truck Alliance, so if you are interested in understanding the company on a deeper level, take a look at the Full Truck Alliance company page on Simply Wall St. We have also compiled a list of essential aspects you should research further:
- Evaluation: What is Full Truck Alliance worth today? Has future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Full Truck Alliance is currently being mispriced by the market.
- Management team: An experienced management team at the helm boosts our confidence in the business – take a look at who sits on the Full Truck Alliance Board of Directors and the CEO’s background.
- Other High Performing Stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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