Bio-Gene Technology Limited (ASX:BGT) Is Expected To Breakeven In The Near Future

Bio-Gene Technology Limited (ASX:BGT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bio-Gene Technology Limited, a biotechnology company, engages in developing insecticides/pesticides for animal health, crop protection, public health, and consumer applications in Australia. The company’s loss has recently broadened since it announced a AU$1.9m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$2.2m, moving it further away from breakeven. Many investors are wondering about the rate at which Bio-Gene Technology 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 Bio-Gene Technology

According to some industry analysts covering Bio-Gene Technology, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$1.5m in 2024. The company is therefore projected to breakeven around 3 years from today. 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 78% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Bio-Gene Technology given that this is a high-level summary, though, keep 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 The company has managed its capital prudently, with debt making up -0.1% of equity. This means that it 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:

There are too many aspects of Bio-Gene Technology to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bio-Gene Technology's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

1. Historical Track Record: What has Bio-Gene Technology'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 Bio-Gene Technology'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. 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.
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