Membership Collective Group Inc. (NYSE:MCG) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Membership Collective Group Inc. operates a global membership platform of physical and digital spaces that connects members worldwide. The US$1.4b market-cap company posted a loss in its most recent financial year of US$326m and a latest trailing-twelve-month loss of US$292m shrinking the gap between loss and breakeven. The most pressing concern for investors is Membership Collective Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.

See our latest analysis for Membership Collective Group

Membership Collective Group is bordering on breakeven, according to the 6 American Hospitality analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$85m in 2024. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 98% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Membership Collective Group's growth isn't the focus of this broad overview, however, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Membership Collective Group is its debt-to-equity ratio of over 2x. 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 Membership Collective Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Membership Collective Group's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:

1. Valuation: What is Membership Collective Group 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 Membership Collective Group 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 Membership Collective Group'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.