Establishment Labs Holdings Inc. (NASDAQ:ESTA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company's loss has recently broadened since it announced a US$79m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$83m, moving it further away from breakeven. Many investors are wondering about the rate at which Establishment Labs Holdings will turn a profit, with the big question being "when will the company breakeven?" We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

According to the 7 industry analysts covering Establishment Labs Holdings, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$495k in 2026. Therefore, the company is expected to breakeven roughly 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 69% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Establishment Labs Holdings' growth isn't the focus of this broad overview, though, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Establishment Labs Holdings is its debt-to-equity ratio of over 2x. Typically, debt shouldn't exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Establishment Labs Holdings 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 Establishment Labs Holdings, take a look at Establishment Labs Holdings' company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Valuation: What is Establishment Labs Holdings 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 Establishment Labs Holdings 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 Establishment Labs Holdings'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.