We feel now is a pretty good time to analyse Delivra Health Brands Inc.'s (CVE:DHB) business as it appears the company may be on the cusp of a considerable accomplishment. Delivra Health Brands Inc. through its subsidiaries, provides lifestyle and wellness products to consumers and patients in regulated markets worldwide. The company’s loss has recently broadened since it announced a CA$184k loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$708k, moving it further away from breakeven. The most pressing concern for investors is Delivra Health Brands' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Delivra Health Brands

Delivra Health Brands is bordering on breakeven, according to some Canadian Pharmaceuticals analysts. They expect the company to post a final loss in 2024, before turning a profit of CA$163k in 2025. Therefore, the company is expected to breakeven just over a year from now. 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 167% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Delivra Health Brands given that this is a high-level summary, however, keep in mind that typically pharmaceuticals, depending on the stage of product development, have irregular periods of cash flow. 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. Delivra Health Brands currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Delivra Health Brands' case is 57%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Delivra Health Brands to cover in one brief article, but the key fundamentals for the company can all be found in one place – Delivra Health Brands' company page on Simply Wall St. We've also put together a list of key factors you should further research:

1. Valuation: What is Delivra Health 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 Delivra Health 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 Delivra Health 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.

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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.