Tissue Regenix Group plc (LON:TRX): Are Analysts Optimistic?

Tissue Regenix Group plc (LON:TRX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Tissue Regenix Group plc, a medical technology company, develops and commercializes platform technologies in the field of tissue engineering and regenerative medicine in the United States and internationally. The UK£28m market-cap company’s loss lessened since it announced a UK£7.0m loss in the full financial year, compared to the latest trailing-twelve-month loss of UK£5.3m, as it approaches breakeven. The most pressing concern for investors is Tissue Regenix Group's 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.

See our latest analysis for Tissue Regenix Group

Expectations from some of the British Biotechs analysts is that Tissue Regenix Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of UK£2.2m in 2023. So, the company is predicted to breakeven approximately 3 years 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 70%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Tissue Regenix Group's growth isn’t the focus of this broad overview, but, bear in mind that generally 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.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 8.4% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Tissue Regenix Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Tissue Regenix Group's company page on Simply Wall St. We've also compiled a list of essential aspects you should look at:

1. Valuation: What is Tissue Regenix Group 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 Tissue Regenix Group 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 Tissue Regenix Group’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. 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.
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