Yahoo Finance Tissue Regenix Group plc (LON:TRX): Are Analysts Optimistic?
We feel now is a pretty good time to analyse Tissue Regenix Group plc's (LON:TRX) business as it appears the company may be on the cusp of a considerable accomplishment. 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 2023, the UK£43m market-cap company posted a loss of US$1.7m for its most recent financial year. As path to profitability is the topic on Tissue Regenix Group's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Tissue Regenix Group
According to some industry analysts covering Tissue Regenix Group, breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$399k in 2025. The company is therefore projected to breakeven just over a year 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 131%, 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 Tissue Regenix Group's upcoming projects, but, keep in mind that typically 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 prudently, with debt making up 20% 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 factors you should further examine:
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.
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.
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.
