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With the business potentially at an important milestone, we thought we'd take a closer look at Hall of Fame Resort & Entertainment Company's (NASDAQ:HOFV) future prospects. Hall of Fame Resort & Entertainment Company, a resort and entertainment company, doing business as the Pro Football Hall of Fame. The US$19m market-cap company’s loss lessened since it announced a US$70m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$65m, as it approaches breakeven. The most pressing concern for investors is Hall of Fame Resort & Entertainment's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for Hall of Fame Resort & Entertainment
According to some industry analysts covering Hall of Fame Resort & Entertainment, breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$10m in 2026. Therefore, the company is expected to breakeven roughly 2 years 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 71% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Hall of Fame Resort & Entertainment's growth isn’t the focus of this broad overview, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Hall of Fame Resort & Entertainment is its debt-to-equity ratio of 195%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
There are key fundamentals of Hall of Fame Resort & Entertainment 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 Hall of Fame Resort & Entertainment, take a look at Hall of Fame Resort & Entertainment's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:
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Historical Track Record: What has Hall of Fame Resort & Entertainment's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Hall of Fame Resort & Entertainment's board and the CEO’s background.
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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.