Hall of Fame Resort & Entertainment Company (NASDAQ:HOFV) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Hall of Fame Resort & Entertainment Company, a resort and entertainment company, doing business as the Pro Football Hall of Fame. The company’s loss has recently broadened since it announced a US$47m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$68m, moving it further away from 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

Expectations from some of the American Hospitality analysts is that Hall of Fame Resort & Entertainment is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$13m in 2025. So, the company is predicted to breakeven approximately 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 61% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Hall of Fame Resort & Entertainment's growth isn’t the focus of this broad overview, but, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one issue worth mentioning. Hall of Fame Resort & Entertainment currently has a debt-to-equity ratio of 140%. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

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

1. 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.

2. 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.

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.