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We feel now is a pretty good time to analyse Bragg Gaming Group Inc.'s (TSE:BRAG) business as it appears the company may be on the cusp of a considerable accomplishment. Bragg Gaming Group Inc. operates as a technology and content supplier to the gaming industry worldwide. With the latest financial year loss of €7.5m and a trailing-twelve-month loss of €7.2m, the CA$131m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Bragg Gaming Group'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.
Check out our latest analysis for Bragg Gaming Group
Bragg Gaming Group is bordering on breakeven, according to the 6 Canadian Hospitality analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of €2.6m in 2023. Therefore, the company is expected to breakeven just over a year 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 107% 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 Bragg Gaming Group's growth isn’t the focus of this broad overview, though, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that Bragg Gaming Group has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
This article is not intended to be a comprehensive analysis on Bragg Gaming Group, so if you are interested in understanding the company at a deeper level, take a look at Bragg Gaming Group's company page on Simply Wall St. We've also compiled a list of key aspects you should further research:
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Valuation: What is Bragg Gaming Group 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 Bragg Gaming Group is currently mispriced by the market.
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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 Bragg Gaming Group’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.