Loss-Making Barfresh Food Group, Inc. (NASDAQ:BRFH) Expected To Breakeven In The Medium-Term
We feel now is a pretty good time to analyse Barfresh Food Group, Inc.'s (NASDAQ:BRFH) business as it appears the company may be on the cusp of a considerable accomplishment. Barfresh Food Group, Inc. manufactures and distributes ready-to-drink and ready-to-blend frozen beverages in the United States. The US$24m market-cap company posted a loss in its most recent financial year of US$6.2m and a latest trailing-twelve-month loss of US$6.3m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Barfresh Food Group will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Barfresh Food Group
Barfresh Food Group is bordering on breakeven, according to the 2 American Food analysts. They expect the company to post a final loss in 2023, before turning a profit of US$1.2m in 2024. Therefore, the company is expected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 121% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Barfresh Food Group given that this is a high-level summary, though, bear 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. Barfresh Food Group currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
This article is not intended to be a comprehensive analysis on Barfresh Food Group, so if you are interested in understanding the company at a deeper level, take a look at Barfresh Food Group's company page on Simply Wall St. We've also compiled a list of important factors you should further examine:
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.
