Yahoo Movies When Will TasFoods Limited (ASX:TFL) Breakeven?
TasFoods Limited (ASX:TFL) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. TasFoods Limited processes, manufactures, and sells Tasmanian-made food products in Australia and internationally. The AU$28m market-cap company announced a latest loss of AU$11m on 31 December 2021 for its most recent financial year result. As path to profitability is the topic on TasFoods' 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 TasFoods
According to some industry analysts covering TasFoods, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of AU$1.3m in 2024. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 83% year-on-year, on average, which is rather optimistic! 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 TasFoods' upcoming projects, though, keep in mind that by and large 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 26% 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 too many aspects of TasFoods to cover in one brief article, but the key fundamentals for the company can all be found in one place – TasFoods' company page on Simply Wall St. We've also compiled a list of important factors you should look at:
Valuation: What is TasFoods 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 TasFoods is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on TasFoods’s 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.
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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.
