Analysts Expect Breakeven For Bio-Works Technologies AB (publ) (STO:BIOWKS) Before Long

Bio-Works Technologies AB (publ) (STO:BIOWKS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bio-Works Technologies AB (publ), a biotechnology company, researches, develops, manufactures, and supplies agarose-based separation products to purify proteins, peptides, and other biomolecules primarily in Sweden. With the latest financial year loss of kr45m and a trailing-twelve-month loss of kr50m, the kr238m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Bio-Works Technologies 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 Bio-Works Technologies

Bio-Works Technologies is bordering on breakeven, according to some Swedish Medical Equipment analysts. They expect the company to post a final loss in 2024, before turning a profit of kr23m in 2025. The company is therefore projected to breakeven around 2 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 105%, which signals high confidence from analysts. 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 Bio-Works Technologies' upcoming projects, but, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Bio-Works Technologies currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Bio-Works Technologies 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 Bio-Works Technologies 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 Bio-Works Technologies’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.