We feel now is a pretty good time to analyse TMC the metals company Inc.'s (NASDAQ:TMC) business as it appears the company may be on the cusp of a considerable accomplishment. TMC the metals company Inc., a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. The US$622m market-cap company posted a loss in its most recent financial year of US$74m and a latest trailing-twelve-month loss of US$99m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which TMC the metals will turn a profit, with the big question being “when will the company breakeven?” 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 TMC the metals

Consensus from 3 of the American Metals and Mining analysts is that TMC the metals is on the verge of breakeven. They expect the company to post a final loss in 2026, before turning a profit of US$97m in 2027. So, the company is predicted to breakeven approximately 2 years from now. 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 signals high confidence from analysts. 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 TMC the metals' upcoming projects, though, take into account that by and large metals and mining companies, depending on the stage of operation and metals mined, have irregular periods of cash flow. So, a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. TMC the metals currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of TMC the metals which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at TMC the metals, take a look at TMC the metals' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:

1. Valuation: What is TMC the metals 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 TMC the metals 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 TMC the metals’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.