When Will B.R.A.I.N. Biotechnology Research and Information Network AG (ETR:BNN) Breakeven?

B.R.A.I.N. Biotechnology Research and Information Network AG (ETR:BNN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 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 €166m market-cap company announced a latest loss of €9.7m on 30 September 2020 for its most recent financial year result. The most pressing concern for investors is B.R.A.I.N. Biotechnology Research and Information Network's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for B.R.A.I.N. Biotechnology Research and Information Network

B.R.A.I.N. Biotechnology Research and Information Network is bordering on breakeven, according to the 6 German Chemicals analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of €236k in 2023. The company is therefore projected to breakeven around 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 100%, which is extremely buoyant. 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, we won’t go into details of B.R.A.I.N. Biotechnology Research and Information Network's upcoming projects, however, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 21% 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:

This article is not intended to be a comprehensive analysis on B.R.A.I.N. Biotechnology Research and Information Network, so if you are interested in understanding the company at a deeper level, take a look at B.R.A.I.N. Biotechnology Research and Information Network's company page on Simply Wall St. We've also compiled a list of key factors you should look at:

1. Valuation: What is B.R.A.I.N. Biotechnology Research and Information Network 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 B.R.A.I.N. Biotechnology Research and Information Network is currently mispriced by the market.
2. 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 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.

If you decide to trade B.R.A.I.N. Biotechnology Research and Information Network, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.