When Will TMC the metals company Inc. (NASDAQ:TMC) Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at TMC the metals company Inc.'s (NASDAQ:TMC) future prospects. TMC the metals company Inc., a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. With the latest financial year loss of US$74m and a trailing-twelve-month loss of US$99m, the US$643m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on TMC the metals' 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.

Check out our latest analysis for TMC the metals

According to the 3 industry analysts covering TMC the metals, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$97m in 2027. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 60% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of TMC the metals' upcoming projects, though, take into account that typically metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we would like to bring into light with TMC the metals is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

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

1. Valuation: What is TMC the metals 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 TMC the metals 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 TMC the metals’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.