Quantum Genomics Société Anonyme (EPA:ALQGC): When Will It Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at Quantum Genomics Société Anonyme's (EPA:ALQGC) future prospects. Quantum Genomics Société Anonyme, a biopharmaceutical company, engages in the development of drugs to treat cardiovascular diseases. The €3.3m market-cap company posted a loss in its most recent financial year of €25m and a latest trailing-twelve-month loss of €18m shrinking the gap between loss and breakeven. As path to profitability is the topic on Quantum Genomics 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 Quantum Genomics Société Anonyme

According to some industry analysts covering Quantum Genomics Société Anonyme, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of €13m in 2024. Therefore, the company is expected to breakeven just over a year from now. 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 178% is expected, which signals high confidence from analysts. 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 Quantum Genomics Société Anonyme given that this is a high-level summary, however, take into account that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one issue worth mentioning. Quantum Genomics Société Anonyme currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Quantum Genomics Société Anonyme's case is 84%. 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 key fundamentals of Quantum Genomics Société Anonyme which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Quantum Genomics Société Anonyme, take a look at Quantum Genomics Société Anonyme's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:

1. Valuation: What is Quantum Genomics 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 Quantum Genomics 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 Quantum Genomics 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.