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We feel now is a pretty good time to analyse Bragg Gaming Group Inc.'s (TSE:BRAG) business as it appears the company may be on the cusp of a considerable accomplishment. Bragg Gaming Group Inc. provides business-to-business online gaming solutions worldwide. The CA$182m market-cap company’s loss lessened since it announced a €14m loss in the full financial year, compared to the latest trailing-twelve-month loss of €11m, as it approaches breakeven. Many investors are wondering about the rate at which Bragg Gaming Group 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.
Bragg Gaming Group is bordering on breakeven, according to the 4 Canadian Hospitality analysts. They expect the company to post a final loss in 2021, before turning a profit of €6.3m in 2022. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 92% year-on-year, on average, 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.
Underlying developments driving Bragg Gaming Group's growth isn’t the focus of this broad overview, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that Bragg Gaming Group has no debt on its balance sheet, which is rare for a loss-making growth company, 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.
This article is not intended to be a comprehensive analysis on Bragg Gaming Group, so if you are interested in understanding the company at a deeper level, take a look at Bragg Gaming Group's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:
Valuation: What is Bragg Gaming 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 Bragg Gaming Group is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bragg Gaming 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.