Byrna Technologies Inc. (NASDAQ:BYRN): Is Breakeven Near?
Byrna Technologies Inc. (NASDAQ:BYRN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Byrna Technologies Inc., a non-lethal defense technology company, provides non-lethal alternative solutions for law enforcement and private security. The US$264m market-cap company announced a latest loss of US$8.2m on 30 November 2023 for its most recent financial year result. The most pressing concern for investors is Byrna Technologies' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Byrna Technologies
According to the 3 industry analysts covering Byrna Technologies, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$2.7m in 2025. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 109% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Byrna Technologies' growth isn’t the focus of this broad overview, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that Byrna Technologies has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Byrna Technologies, so if you are interested in understanding the company at a deeper level, take a look at Byrna Technologies' company page on Simply Wall St. We've also put together a list of important factors you should look at:
Valuation: What is Byrna Technologies 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 Byrna Technologies 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 Byrna Technologies’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.
