We Might See A Profit From Plant Advanced Technologies SA (EPA:ALPAT) Soon

With the business potentially at an important milestone, we thought we'd take a closer look at Plant Advanced Technologies SA's (EPA:ALPAT) future prospects. Plant Advanced Technologies SA, a plant biotechnology company, produces and sells actives for cosmetic, pharmaceutical, and agrochemical markets in France. The €12m market-cap company announced a latest loss of €849k on 31 December 2022 for its most recent financial year result. The most pressing concern for investors is Plant Advanced Technologies' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Plant Advanced Technologies

Plant Advanced Technologies is bordering on breakeven, according to some French Biotechs analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of €200k in 2023. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 90% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Plant Advanced Technologies' growth isn’t the focus of this broad overview, however, bear in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one issue worth mentioning. Plant Advanced Technologies currently has a relatively high level of debt. Typically, 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 relevant factors you should further research:

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.