Bausch Health Companies Inc. (NYSE:BHC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bausch Health Companies Inc. operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. The US$2.3b market-cap company posted a loss in its most recent financial year of US$592m and a latest trailing-twelve-month loss of US$178m shrinking the gap between loss and breakeven. As path to profitability is the topic on Bausch Health Companies' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Bausch Health Companies

Consensus from 6 of the American Pharmaceuticals analysts is that Bausch Health Companies is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$404m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 218% is expected, which is rather optimistic! 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 Bausch Health Companies given that this is a high-level summary, but, keep in mind that by and large a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one issue worth mentioning. Bausch Health Companies currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

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

1. Valuation: What is Bausch Health Companies 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 Bausch Health Companies 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 Bausch Health Companies’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.