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With the business potentially at an important milestone, we thought we'd take a closer look at Barfresh Food Group, Inc.'s (NASDAQ:BRFH) future prospects. Barfresh Food Group, Inc. manufactures and distributes ready to blend frozen beverages in the United States. On 31 December 2021, the US$95m market-cap company posted a loss of US$1.3m for its most recent financial year. As path to profitability is the topic on Barfresh Food Group's 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.
Consensus from 2 of the American Food analysts is that Barfresh Food Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$3.5m 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 119%, 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.
Given this is a high-level overview, we won’t go into details of Barfresh Food Group's upcoming projects, but, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. Barfresh Food Group currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
There are key fundamentals of Barfresh Food Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Barfresh Food Group, take a look at Barfresh Food Group's company page on Simply Wall St. We've also put together a list of key aspects you should look at:
Historical Track Record: What has Barfresh Food Group'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 Barfresh Food Group'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.