With the business potentially at an important milestone, we thought we'd take a closer look at Waldencast plc's (NASDAQ:WALD) future prospects. Waldencast plc operates in the beauty and wellness business. The US$821m market-cap company announced a latest loss of US$96m on 31 December 2022 for its most recent financial year result. The most pressing concern for investors is Waldencast's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.
Consensus from 2 of the American Personal Products analysts is that Waldencast is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$29m in 2024. So, the company is predicted to breakeven approximately a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 142% year-on-year, on average, 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.
We're not going to go through company-specific developments for Waldencast given that this is a high-level summary, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there's one aspect worth mentioning. The company has managed its capital prudently, with debt making up 22% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Waldencast to cover in one brief article, but the key fundamentals for the company can all be found in one place – Waldencast's company page on Simply Wall St. We've also put together a list of relevant factors you should look at:
- Historical Track Record: What has Waldencast's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Waldencast's board and the CEO's background.
- 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.