B.R.A.I.N. Biotechnology Research and Information Network AG’s (ETR:BNN): B.R.A.I.N. Biotechnology Research and Information Network AG researches, develops, produces, and markets enzymes, biocatalysts, microorganisms, and bioactive natural substances for chemical and consumer goods industries in Germany, the United States, France, and the United Kingdom. The company’s loss has recently broadened since it announced a -€10.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of -€11.4m, moving it further away from breakeven. As path to profitability is the topic on BNN’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for BNN’s growth and when analysts expect the company to become profitable.
Consensus from the 4 Chemicals analysts is BNN is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of €2.1m in 2022. So, BNN is predicted to breakeven approximately 2 years from now. What rate will BNN 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 70%, which signals high confidence from analysts. If this rate turns out to be too aggressive, BNN may become profitable much later than analysts predict.
Underlying developments driving BNN’s growth isn’t the focus of this broad overview, but, take into account 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 I’d like to point out is that BNN has managed its capital judiciously, with debt making up of equity. This means that BNN has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
There are too many aspects of BNN to cover in one brief article, but the key fundamentals for the company can all be found in one place – BNN’s company page on Simply Wall St. I’ve also compiled a list of pertinent aspects you should further research:
- Valuation: What is BNN 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 BNN is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on B.R.A.I.N. Biotechnology Research and Information Network’s board and the CEO’s back ground.
- 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.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.