Published on 5 May 2022 on Simply Wall St. via Yahoo Finance

When Can We Expect A Profit From Full Truck Alliance Co. Ltd. (NYSE:YMM)?

Full Truck Alliance Co. Ltd. (NYSE:YMM) is possibly approaching a major achievement in its business, so we would like to shine 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 across distance ranges, cargo weights, and types in the People’s Republic of China. The US$7.9b market-cap company announced a latest loss of CN¥4.2b on 31 December 2021 for its most recent financial year result. Many investors are wondering about the rate at which Full Truck Alliance will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Full Truck Alliance

Consensus from 4 of the American Transportation analysts is that Full Truck Alliance is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of CN¥1.9b in 2023. Therefore, the company is expected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 102%, 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.