We feel now is a pretty good time to analyse BRAIN Biotech AG's (ETR:BNN) business as it appears the company may be on the cusp of a considerable accomplishment. BRAIN Biotech AG offers Bio-based products and solutions in Germany, the United States, France, the Netherlands, and the United Kingdom. With the latest financial year loss of €6.6m and a trailing-twelve-month loss of €6.7m, the €79m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which BRAIN Biotech 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 BRAIN Biotech

Consensus from 4 of the German Chemicals analysts is that BRAIN Biotech is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of €1.3m in 2025. Therefore, the company is expected to breakeven roughly 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 71%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving BRAIN Biotech's growth isn’t the focus of this broad overview, though, keep in mind that typically 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 BRAIN Biotech 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.

Next Steps:

There are too many aspects of BRAIN Biotech to cover in one brief article, but the key fundamentals for the company can all be found in one place – BRAIN Biotech's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

1. Historical Track Record: What has BRAIN Biotech'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.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on BRAIN Biotech'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.