With the business potentially at an important milestone, we thought we'd take a closer look at TMC the metals company Inc.'s (NASDAQ:TMC) future prospects. TMC the metals company Inc., a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. The US$340m market-cap company posted a loss in its most recent financial year of US$74m and a latest trailing-twelve-month loss of US$91m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on TMC the metals' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for TMC the metals

According to the 2 industry analysts covering TMC the metals, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$32m in 2026. The company is therefore projected to breakeven around 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 84%, 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 TMC the metals' growth isn’t the focus of this broad overview, however, keep in mind that typically metals and mining companies, depending on the stage of operation and metals mined, 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. TMC the metals currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

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

1. Valuation: What is TMC the metals 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 TMC the metals 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 TMC the metals’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.