Traeger, Inc. (NYSE:COOK) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 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. On 31 December 2024, the US$221m market-cap company posted a loss of US$34m for its most recent financial year. As path to profitability is the topic on Traeger's investors mind, we've decided to gauge market sentiment. 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 anticipate the company to incur a final loss in 2026, before generating positive profits of US$4.5m in 2027. So, the company is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 60% 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 Traeger given that this is a high-level summary, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for Traeger

One thing we would like to bring into light with Traeger is its debt-to-equity ratio of 146%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Traeger 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 Traeger, take a look at Traeger's company page on Simply Wall St. We've also compiled a list of important factors you should further research:

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.