Theradiag SA's (EPA:ALTER): Theradiag SA engages in the development, industrialization, and marketing of diagnosis kits in France and internationally. On 31 December 2018, the €10.0m market-cap posted a loss of -€787.2k for its most recent financial year. As path to profitability is the topic on ALTER’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for ALTER, its year of breakeven and its implied growth rate.
Check out our latest analysis for Theradiag
According to the industry analysts covering ALTER, breakeven is near. They anticipate the company to incur a final loss in 2019, before generating positive profits of €100k in 2020. ALTER is therefore projected to breakeven around a couple of months from now! What rate will ALTER have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 113%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of ALTER’s upcoming projects, though, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before I wrap up, there’s one aspect worth mentioning. ALTER has managed its capital judiciously, with debt making up -3.7% of equity. This means that ALTER has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on ALTER, so if you are interested in understanding the company at a deeper level, take a look at ALTER’s company page on Simply Wall St. I’ve also compiled a list of important factors you should further research:
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Valuation: What is ALTER 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 ALTER 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 Theradiag’s board and the CEO’s back ground.
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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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