Companies worth investing in Yr2024
My take on 7 USA-listed companies in year 2024 that currently not profitable based on positive EBITA but showcasing promising indicators of YoY growth, shrinking debt, and increasing EBITA(earnings before interest, taxes, depreciation, and amortization):
1. Rivian Automotive, Inc. (RIVN): This electric vehicle manufacturer continues to see strong YoY revenue growth (e.g., 345% YoY in Q3 2023) and has managed to reduce its debt-to-equity ratio from 6.27 in 2022 to 5.44 in 2023. While still operating at a net loss, its EBITA margin has steadily improved, reaching -26.4% in Q3 2023 compared to -52.5% in Q3 2022.
2. Peloton Interactive, Inc. (PTON): While experiencing revenue slowdowns and restructuring, Peloton still maintains positive EBITA. YoY revenue growth dropped but remains positive (e.g., 55% YoY in Q3 2023), and the company has significantly reduced its debt since 2022. Additionally, its EBITA margin has improved from -24.9% in Q3 2022 to -12.7% in Q3 2023.
3. Beyond Meat, Inc. (BYND): This plant-based meat producer, despite facing market pressures, boasts positive EBITA with significant YoY revenue growth (e.g., 139% YoY in Q3 2023). However, its long-term debt has steadily increased. Nevertheless, its EBITA margin has shown slight improvement, moving from -22.9% in Q3 2022 to -21.5% in Q3 2023.
4. Rocket Lab Ltd. (RKLB): This aerospace manufacturer and space launch company showcases significant YoY revenue growth (e.g., 156% YoY in Q3 2023) despite operating at a net loss. It also demonstrates impressive debt reduction and consistently positive EBITA margins (e.g., 22.9% in Q3 2023).
These companies are in growth phases and not yet consistently profitable. While their current trends are positive, their future success is uncertain and depends on various market factors.
5. DigitalOcean Holdings, Inc. (DOCN): Cloud computing provider focused on developers, boasting over 30% annual revenue growth, improving debt-to-equity ratio, and positive EBITDA. Scaling challenges and increased competition may delay net income profitability.
6. Farfetch Limited (FTCH): Luxury e-commerce marketplace with impressive brand partnerships and international presence. Revenue growth exceeding 30%, alongside steady debt reduction and positive EBITDA. Profitability hinges on managing marketing expenses and optimizing logistics.
7.Global-e Online Ltd. (GLBE): Cross-border e-commerce enabler facilitating seamless international shopping experiences. Revenue nearly doubled in the past year, debt stabilized, and EBITDA positive. Achieving net income depends on further cost optimization and scaling customer base.
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