We feel now is a pretty good time to analyse Bausch Health Companies Inc.'s (NYSE:BHC) business as it appears the company may be on the cusp of a considerable accomplishment. Bausch Health Companies Inc. operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. The US$2.7b market-cap company's loss lessened since it announced a US$592m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$455m, as it approaches breakeven. The most pressing concern for investors is Bausch Health Companies' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

According to the 8 industry analysts covering Bausch Health Companies, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$144m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 96% 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.

Given this is a high-level overview, we won't go into details of Bausch Health Companies' upcoming projects, however, 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, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we would like to bring into light with Bausch Health Companies is it 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:

This article is not intended to be a comprehensive analysis on Bausch Health Companies, so if you are interested in understanding the company at a deeper level, take a look at Bausch Health Companies' company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:

1. Valuation: What is Bausch Health Companies 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 Bausch Health Companies 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 Bausch Health Companies'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.

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