When Will 3billion, Inc. (KOSDAQ:394800) Breakeven?

3billion, Inc. (KOSDAQ:394800) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 3billion, Inc. develops technology for rare disease drug discovery using bioinformatics and machine learning technology. The ₩381b market-cap company’s loss lessened since it announced a ₩6.6b loss in the full financial year, compared to the latest trailing-twelve-month loss of ₩6.0b, as it approaches breakeven. Many investors are wondering about the rate at which 3billion will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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3billion is bordering on breakeven, according to some South Korean Biotechs analysts. They expect the company to post a final loss in 2026, before turning a profit of ₩8.7b in 2027. Therefore, the company is expected to breakeven roughly 2 years from today. 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 107% is expected, which is rather optimistic! 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 3billion's upcoming projects, however, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

See our latest analysis for 3billion

Before we wrap up, there’s one aspect worth mentioning. 3billion currently has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on 3billion, so if you are interested in understanding the company at a deeper level, take a look at 3billion's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is 3billion 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 3billion 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 3billion’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.