When Will Traeger, Inc. (NYSE:COOK) Become Profitable?

We feel now is a pretty good time to analyse Traeger, Inc.'s (NYSE:COOK) business as it appears the company may be on the cusp of a considerable accomplishment. Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills and pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States and internationally. With the latest financial year loss of US$34m and a trailing-twelve-month loss of US$35m, the US$131m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Traeger's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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According to the 8 industry analysts covering Traeger, the consensus is that breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of US$13m in 2027. Therefore, the company is expected to breakeven roughly 2 years 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 60% is expected, 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 Traeger's upcoming projects, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for Traeger

One thing we would like to bring into light with Traeger is its debt-to-equity ratio of 149%. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Traeger to cover in one brief article, but the key fundamentals for the company can all be found in one place – Traeger's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further examine:

1. Valuation: What is Traeger 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 Traeger is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Traeger’s board and the CEO’s background.
3. 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.