Breakeven On The Horizon For Traeger, Inc. (NYSE:COOK)

With the business potentially at an important milestone, we thought we'd take a closer look at Traeger, Inc.'s (NYSE:COOK) future prospects. Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills and pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States and internationally. The US$195m market-cap company announced a latest loss of US$34m on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is Traeger's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Consensus from 10 of the American Consumer Durables analysts is that Traeger is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of US$4.5m in 2027. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 60%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Traeger's upcoming projects, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Traeger

Before we wrap up, there’s one issue worth mentioning. Traeger currently has a debt-to-equity ratio of 146%. 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:

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

1. Valuation: What is Traeger 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 Traeger 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 Traeger’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.