Analysts expect a breakout for Hall of Fame Resort & Entertainment Company (NASDAQ:HOFV) soon

Hall of Fame Resort & Entertainment Company (NASDAQ:HOFV) is probably approaching a major milestone in its business, so we’d like to shed some light on the company. Hall of Fame Resort & Entertainment Company, a resort and entertainment company developing business as the Pro Football Hall of Fame. The company’s losses have recently widened since it announced a loss of US$47 million for the full financial year, compared with its latest loss of US$68 million for the trailing twelve months, pushing it further away from profitability. The most pressing concern for investors is Hall of Fame Resort & Entertainment’s path to profitability – when will it break even? We’ve put together a summary of industry analysts’ expectations for the company, its year of profitability and estimated growth rate.

Check out our latest Hall of Fame Resort & Entertainment analysis

The expectation among some of American Hospitality’s analysts is that Hall of Fame Resort & Entertainment is on the brink of profitability. They expect the company to make a final loss in 2024 before generating positive earnings of $13 million in 2025. So the company is expected to break even in approximately 2 years. To meet this break-even date, we calculated the rate at which the company would need to grow on an annual basis. It turns out that an average annual growth rate of 61% is expected, which is a signal of high confidence on the part of analysts. If that rate turns out to be too aggressive, the company could turn profitable much later than analysts’ forecasts.

earnings per share growth

The major developments driving Hall of Fame Resort & Entertainment’s growth are not the focus of this broad overview, but note that a generally high growth rate is not unusual, especially when a company is in an investment period.

Before we wrap up, there is one issue worth mentioning. Hall of Fame Resort & Entertainment currently has a debt-to-equity ratio of 140%. Generally, the rule of thumb is that debt should not exceed 40% of your equity, which in this case the company significantly exceeded. A higher level of debt requires tighter capital management, which increases the risk around investing in the losing company.

Next steps:

This article is not intended to be a comprehensive analysis of Hall of Fame Resort & Entertainment, so if you are interested in understanding the company on a deeper level, take a look at the company page of Hall of Fame Resort & Entertainment on Simply Wall St. We have also compiled a list of relevant aspects that you should explore further:

  1. A historical record: How has Hall of Fame Resort & Entertainment performed in the past? Go into more detail in the previous results analysis and check out the free visual representations of our analysis for more clarity.

  2. Management team: Having an experienced management team at the helm boosts our confidence in the business – see who’s on the Board of Hall of Fame Resort & Entertainment and the CEO’s background.

  3. Other High Performance Stocks: Are there other stocks that provide better prospects with proven results? Check out our free list of these great stocks here.

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

This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts, using only an unbiased methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.

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