When Will Harvest Technology Group Ltd. (ASX:HTG) Become Profitable?

ASX:HTG) future prospects. Harvest Technology Group Ltd. develops and commercializes various marine products primarily in Australia and the United States. The AU$175m market-cap company posted a loss in its most recent financial year of AU$1.4m and a latest trailing-twelve-month loss of AU$2.0m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Harvest Technology Group will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company." data-reactid="28">With the business potentially at an important milestone, we thought we'd take a closer look at Harvest Technology Group Ltd.'s (ASX:HTG) future prospects. Harvest Technology Group Ltd. develops and commercializes various marine products primarily in Australia and the United States. The AU$175m market-cap company posted a loss in its most recent financial year of AU$1.4m and a latest trailing-twelve-month loss of AU$2.0m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Harvest Technology Group will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Harvest Technology Group " data-reactid="29"> View our latest analysis for Harvest Technology Group

Harvest Technology Group is bordering on breakeven, according to some Australian Electronic analysts. They expect the company to post a final loss in 2021, before turning a profit of AU$6.0m in 2022. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 106% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Harvest Technology Group's growth isn’t the focus of this broad overview, but, bear in mind that typically 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 issue worth mentioning. Harvest Technology Group currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Harvest Technology Group's case is 76%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

Harvest Technology Group's company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:" data-reactid="50">There are too many aspects of Harvest Technology Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Harvest Technology Group's company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:

1. Valuation: What is Harvest Technology 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 Harvest Technology 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 Harvest Technology 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.

Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com." data-reactid="55">This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

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