Plant Advanced Technologies SA (EPA:ALPAT): Are Analysts Optimistic?

Plant Advanced Technologies SA (EPA:ALPAT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Plant Advanced Technologies SA, a plant biotechnology company, produces and sells actives for cosmetic, pharmaceutical, and agrochemical markets in France. On 31 December 2022, the €7.5m market-cap company posted a loss of €849k for its most recent financial year. The most pressing concern for investors is Plant Advanced Technologies' 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.

Check out our latest analysis for Plant Advanced Technologies

Expectations from some of the French Biotechs analysts is that Plant Advanced Technologies is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of €1.2m in 2025. So, the company is predicted to breakeven just over a year 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 100% is expected, which is extremely buoyant. 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 Plant Advanced Technologies given that this is a high-level summary, though, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. So, 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 issue worth mentioning. Plant Advanced Technologies currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Plant Advanced Technologies' case is 86%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Plant Advanced Technologies to cover in one brief article, but the key fundamentals for the company can all be found in one place – Plant Advanced Technologies' company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:

1. Valuation: What is Plant Advanced Technologies 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 Plant Advanced Technologies 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 Plant Advanced Technologies’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.

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

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.