Biomerica Inc’s (NASDAQ:BMRA): Biomerica, Inc., together with its subsidiaries, develops, manufactures, and markets medical diagnostic products for the early detection and monitoring of chronic diseases and medical conditions worldwide. With the latest financial year loss of -US$908.56K and a trailing-twelve month of -US$1.14M, the US$33.48M market-cap amplifies its loss by moving further away from its breakeven target. Many investors are wondering the rate at which BMRA will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for BMRA.
According to the industry analysts covering BMRA, breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$7.43M in 2022. BMRA is therefore projected to breakeven around 4 years from today. In order to meet this breakeven date, I calculated the rate at which BMRA must grow year-on-year. It turns out an average annual growth rate of 57.33% is expected, 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 BMRA’s growth isn’t the focus of this broad overview, however, 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.
Before I wrap up, there’s one aspect worth mentioning. BMRA currently has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which usually has a high level of debt relative to its equity. BMRA 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 BMRA to cover in one brief article, but the key fundamentals for the company can all be found in one place – BMRA’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should further research:
- Valuation: What is BMRA 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 BMRA 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 Biomerica’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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.