Analysts Expect Waldencast plc (NASDAQ:WALD) To Breakeven Soon
With the business potentially at an important milestone, we thought we'd take a closer look at Waldencast plc's (NASDAQ:WALD) future prospects. Waldencast plc operates in the beauty and wellness business. The US$897m market-cap company announced a latest loss of US$96m on 31 December 2022 for its most recent financial year result. Many investors are wondering about the rate at which Waldencast 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.
Check out our latest analysis for Waldencast
Consensus from 2 of the American Personal Products analysts is that Waldencast is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$29m in 2024. Therefore, the company is expected to breakeven roughly 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 142%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Waldencast's upcoming projects, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 22% 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:
This article is not intended to be a comprehensive analysis on Waldencast, so if you are interested in understanding the company at a deeper level, take a look at Waldencast's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:
Historical Track Record: What has Waldencast's 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 Waldencast'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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
