Crossject Société Anonyme (EPA:ALCJ) Has Found A Path To Profitability

We feel now is a pretty good time to analyse Crossject Société Anonyme's (EPA:ALCJ) business as it appears the company may be on the cusp of a considerable accomplishment. Crossject Société Anonyme develops needle-free injection systems in France. With the latest financial year loss of €11m and a trailing-twelve-month loss of €9.8m, the €209m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Crossject Société Anonyme's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Crossject Société Anonyme

According to some industry analysts covering Crossject Société Anonyme, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of €17m in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 57%, 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 Crossject Société Anonyme's upcoming projects, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with Crossject Société Anonyme is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are too many aspects of Crossject Société Anonyme to cover in one brief article, but the key fundamentals for the company can all be found in one place – Crossject Société Anonyme's company page on Simply Wall St. We've also put together a list of relevant factors you should further research:

1. Valuation: What is Crossject Société Anonyme 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 Crossject Société Anonyme 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 Crossject Société Anonyme’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. 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.