When Can We Expect A Profit From Quantum Genomics Société Anonyme (EPA:ALQGC)?

Quantum Genomics Société Anonyme (EPA:ALQGC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Quantum Genomics Société Anonyme, a biopharmaceutical company, develops drugs to treat cardiovascular diseases. The €5.2m market-cap company announced a latest loss of €25m on 31 December 2022 for its most recent financial year result. Many investors are wondering about the rate at which Quantum Genomics Société Anonyme will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See 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. So, the company is predicted to breakeven just over a year from today. 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 141%, which is extremely buoyant. 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 Quantum Genomics Société Anonyme's upcoming projects, however, take into account that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we would like to bring into light with Quantum Genomics Société Anonyme is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Quantum Genomics Société Anonyme's case is 84%. Note that a higher debt obligation increases the risk around 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 important factors you should further research:

1. Historical Track Record: What has Quantum Genomics Société Anonyme's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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.

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.