GeNeuro SA (EPA:GNRO) Is About To Turn The Corner

With the business potentially at an important milestone, we thought we'd take a closer look at GeNeuro SA's (EPA:GNRO) future prospects. GeNeuro SA, a clinical-stage biopharmaceutical company, develops drugs for the treatment of neurodegenerative and autoimmune diseases. On 31 December 2023, the €67m market-cap company posted a loss of €15m for its most recent financial year. Many investors are wondering about the rate at which GeNeuro will turn a profit, with the big question being “when will the company 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 GeNeuro

According to some industry analysts covering GeNeuro, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of €1.1m in 2024. Therefore, the company is expected to breakeven roughly 12 months 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 -42%,

Underlying developments driving GeNeuro's growth isn’t the focus of this broad overview, however, bear in mind that typically 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 low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.

Before we wrap up, there’s one issue worth mentioning. GeNeuro currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

This article is not intended to be a comprehensive analysis on GeNeuro, so if you are interested in understanding the company at a deeper level, take a look at GeNeuro's company page on Simply Wall St. We've also compiled a list of important factors you should further examine:

1. Historical Track Record: What has GeNeuro'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 GeNeuro'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.