Advertisement
Singapore markets closed
  • Straits Times Index

    3,497.78
    +22.72 (+0.65%)
     
  • Nikkei

    41,190.68
    -1,033.34 (-2.45%)
     
  • Hang Seng

    18,293.38
    +461.05 (+2.59%)
     
  • FTSE 100

    8,252.91
    +29.57 (+0.36%)
     
  • Bitcoin USD

    58,668.45
    +1,043.83 (+1.81%)
     
  • CMC Crypto 200

    1,227.31
    +28.74 (+2.40%)
     
  • S&P 500

    5,615.35
    +30.81 (+0.55%)
     
  • Dow

    40,000.90
    +247.15 (+0.62%)
     
  • Nasdaq

    18,398.45
    +115.04 (+0.63%)
     
  • Gold

    2,416.00
    -5.90 (-0.24%)
     
  • Crude Oil

    82.18
    -0.44 (-0.53%)
     
  • 10-Yr Bond

    4.1890
    -0.0040 (-0.10%)
     
  • FTSE Bursa Malaysia

    1,619.06
    -4.06 (-0.25%)
     
  • Jakarta Composite Index

    7,327.58
    +27.17 (+0.37%)
     
  • PSE Index

    6,648.23
    +38.99 (+0.59%)
     

Market Sentiment Around Loss-Making Tilray Brands, Inc. (NASDAQ:TLRY)

Tilray Brands, Inc. (NASDAQ:TLRY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Tilray Brands, Inc. engages in the research, cultivation, processing, and distribution of medical cannabis products in Canada, the United States, Europe, Australia, New Zealand, Latin America, and internationally. With the latest financial year loss of US$1.5b and a trailing-twelve-month loss of US$352m, the US$1.4b market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Tilray Brands' 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.

Check out our latest analysis for Tilray Brands

According to the 16 industry analysts covering Tilray Brands, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$54m in 2027. So, the company is predicted to breakeven approximately 3 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 81% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Tilray Brands' upcoming projects, though, bear 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.

ADVERTISEMENT

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 12% 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 Tilray Brands, so if you are interested in understanding the company at a deeper level, take a look at Tilray Brands' company page on Simply Wall St. We've also put together a list of key factors you should further examine:

  1. Valuation: What is Tilray Brands 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 Tilray Brands 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 Tilray Brands’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com