We feel now is a pretty good time to analyse ToughBuilt Industries, Inc.'s (NASDAQ:TBLT) business as it appears the company may be on the cusp of a considerable accomplishment. ToughBuilt Industries, Inc. designs, develops, manufactures, and distributes home improvement and construction products for the building industry in the United States and internationally. The company’s loss has recently broadened since it announced a US$4.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$7.4m, moving it further away from breakeven. The most pressing concern for investors is ToughBuilt Industries' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for ToughBuilt Industries

ToughBuilt Industries is bordering on breakeven, according to some American Luxury analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$900k in 2023. 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 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 63% 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 ToughBuilt Industries given that this is a high-level summary, but, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 13% 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:

This article is not intended to be a comprehensive analysis on ToughBuilt Industries, so if you are interested in understanding the company at a deeper level, take a look at ToughBuilt Industries' company page on Simply Wall St. We've also put together a list of key aspects you should further examine:

1. Valuation: What is ToughBuilt Industries 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 ToughBuilt Industries 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 ToughBuilt Industries’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.

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.

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