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BRAIN Biotech AG (ETR:BNN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. BRAIN Biotech AG engages in the research and development of Bio-based products and solutions in Germany, the United States, France, the Netherlands, and the United Kingdom. With the latest financial year loss of €8.3m and a trailing-twelve-month loss of €8.8m, the €59m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which BRAIN Biotech will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for BRAIN Biotech
BRAIN Biotech is bordering on breakeven, according to the 4 German Chemicals analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of €630k in 2026. Therefore, the company is expected to breakeven roughly 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 72%, 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.
Given this is a high-level overview, we won’t go into details of BRAIN Biotech's upcoming projects, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that BRAIN Biotech has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of BRAIN Biotech to cover in one brief article, but the key fundamentals for the company can all be found in one place – BRAIN Biotech's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:
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Historical Track Record: What has BRAIN Biotech'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 BRAIN Biotech'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.
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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.