BioPorto A/S's (CPH:BIOPOR): BioPorto A/S, an in-vitro diagnostics company, provides diagnostic tests and antibodies for healthcare professionals in clinical and research settings worldwide. The ø485m market-cap posted a loss in its most recent financial year of -ø38.0m and a latest trailing-twelve-month loss of -ø50.5m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on BIOPOR’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for BIOPOR, its year of breakeven and its implied growth rate.
BIOPOR is bordering on breakeven, according to the 2 Biotechs analysts. They expect the company to post a final loss in 2021, before turning a profit of ø32m in 2022. So, BIOPOR is predicted to breakeven approximately 3 years from today. In order to meet this breakeven date, I calculated the rate at which BIOPOR must grow year-on-year. It turns out an average annual growth rate of 69% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, I won’t go into details of BIOPOR’s upcoming projects, though, keep in mind that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
One thing I’d like to point out is that BIOPOR has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of debt relative to its equity. BIOPOR currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are too many aspects of BIOPOR to cover in one brief article, but the key fundamentals for the company can all be found in one place – BIOPOR’s company page on Simply Wall St. I’ve also put together a list of important factors you should further research:
- Historical Track Record: What has BIOPOR'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 BioPorto’s board and the CEO’s back ground.
- 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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