Tissue Regenix Group plc (LON:TRX): When Will It Breakeven?

With the business potentially at an important milestone, we thought we'd take a closer look at Tissue Regenix Group plc's (LON:TRX) future prospects. Tissue Regenix Group plc, a medical technology company, develops and commercializes platform technologies in the field of bone graft substitutes and soft tissue in the United States and internationally. On 31 December 2022, the UK£38m market-cap company posted a loss of US$2.7m for its most recent financial year. The most pressing concern for investors is Tissue Regenix Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Tissue Regenix Group

Tissue Regenix Group is bordering on breakeven, according to the 2 British Biotechs analysts. They expect the company to post a final loss in 2023, before turning a profit of US$222k in 2024. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 94% year-on-year, on average, which is rather optimistic! 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, 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.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 21% 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 put together a list of relevant aspects you should look at:

1. Historical Track Record: What has Tissue Regenix Group'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 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. 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.