Analysts Expect Breakeven For Bragg Gaming Group Inc. (TSE:BRAG) Before Long
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. operates as an online gaming and content supplier to the gaming industry worldwide. The CA$161m market-cap company posted a loss in its most recent financial year of €3.5m and a latest trailing-twelve-month loss of €3.9m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Bragg Gaming Group's path to profitability – when will it 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 Bragg Gaming Group
According to the 8 industry analysts covering Bragg Gaming Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of €2.2m in 2024. Therefore, the company is expected to breakeven just over a year 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 96% 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.
We're not going to go through company-specific developments for Bragg Gaming Group given that this is a high-level summary, but, bear 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 The company has managed its capital prudently, with debt making up 5.1% 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 Bragg Gaming Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bragg Gaming Group's company page on Simply Wall St. We've also put together a list of essential factors you should look at:
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.
