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

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 for retailers, distributors, and direct to consumers in the United States. The US$400m market-cap company posted a loss in its most recent financial year of US$84m and a latest trailing-twelve-month loss of US$51m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Traeger 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.

View our latest analysis for Traeger

Traeger is bordering on breakeven, according to the 10 American Consumer Durables analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$4.0m in 2026. So, the company is predicted to breakeven approximately 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 71% 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, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Traeger is its debt-to-equity ratio of 142%. 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 key fundamentals of Traeger 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 Traeger, take a look at Traeger's company page on Simply Wall St. We've also put together a list of key 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.