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 provides offshore solutions and engineering services for subsea intervention projects and asset integrity risk mitigation primarily in Australia and the United States. The AU$90m market-cap company posted a loss in its most recent financial year of AU$10m and a latest trailing-twelve-month loss of AU$14m 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?” 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 Harvest Technology Group

According to some industry analysts covering Harvest Technology Group, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$5.4m in 2024. Therefore, the company is expected to breakeven roughly 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 102%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected. earnings-per-share-growth

Underlying developments driving Harvest Technology Group's growth isn’t the focus of this broad overview, though, keep in mind that typically 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 31% 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:

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 compiled a list of pertinent aspects you should further research:

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. 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. 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.