Yahoo Finance When Will Tissue Regenix Group plc (LON:TRX) Become Profitable?
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 tissue engineering and regenerative medicine in the United States and internationally. On 31 December 2021, the UK£35m market-cap company posted a loss of US$4.8m for its most recent financial year. Many investors are wondering about the rate at which Tissue Regenix 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.
View our latest analysis for Tissue Regenix Group
Consensus from 2 of the British Biotechs analysts is that Tissue Regenix Group is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$2.4m in 2024. Therefore, the company is expected to breakeven roughly 2 years from now. 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 93% is expected, which is extremely buoyant. 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, however, take into account that generally biotechs, depending on the stage of product development, have irregular periods of cash flow. So, 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. The company has managed its capital prudently, with debt making up 13% 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:
This article is not intended to be a comprehensive analysis on Tissue Regenix Group, so if you are interested in understanding the company at a deeper level, take a look at Tissue Regenix Group's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:
Valuation: What is Tissue Regenix 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 Tissue Regenix 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 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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