Bausch Health Companies Inc.'s (NYSE:BHC) Path To Profitability

Bausch Health Companies Inc. (NYSE:BHC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bausch Health Companies Inc. operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. With the latest financial year loss of US$592m and a trailing-twelve-month loss of US$178m, the US$2.8b market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Bausch Health Companies' 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.

View our latest analysis for Bausch Health Companies

According to the 7 industry analysts covering Bausch Health Companies, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$405m in 2025. Therefore, the company is expected to breakeven just over a year from now. 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 218% 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 Bausch Health Companies given that this is a high-level summary, though, keep in mind that generally a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one issue worth mentioning. Bausch Health Companies currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of Bausch Health Companies 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 Bausch Health Companies, take a look at Bausch Health Companies' company page on Simply Wall St. We've also put together a list of essential factors you should further examine:

1. Valuation: What is Bausch Health Companies 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 Bausch Health Companies 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 Bausch Health Companies’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.