Yahoo Movies Breakeven On The Horizon For Blue Star Foods Corp. (NASDAQ:BSFC)
With the business potentially at an important milestone, we thought we'd take a closer look at Blue Star Foods Corp.'s (NASDAQ:BSFC) future prospects. Blue Star Foods Corp., through its subsidiaries, operates as a marine protein company in the United States and Canada. With the latest financial year loss of US$2.6m and a trailing-twelve-month loss of US$4.2m, the US$32m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Blue Star Foods' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Blue Star Foods
Consensus from 2 of the American Food analysts is that Blue Star Foods is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$1.3m in 2024. Therefore, the company is expected to breakeven roughly 2 years from today. 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 99% 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.
We're not going to go through company-specific developments for Blue Star Foods given that this is a high-level summary, but, bear in mind that typically 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 Blue Star Foods is its debt-to-equity ratio of 106%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Blue Star Foods, so if you are interested in understanding the company at a deeper level, take a look at Blue Star Foods' company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:
Valuation: What is Blue Star Foods 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 Blue Star Foods is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Blue Star Foods’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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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