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Marrone Bio Innovations, Inc. (NASDAQ:MBII) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Marrone Bio Innovations, Inc. discovers, develops, produces, and promotes biological products for pest management, plant nutrition, and plant health in the United States and internationally. The US$425m market-cap company’s loss lessened since it announced a US$37m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$26m, as it approaches breakeven. As path to profitability is the topic on Marrone Bio Innovations' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Consensus from 5 of the American Chemicals analysts is that Marrone Bio Innovations is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$10m in 2023. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 60% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Marrone Bio Innovations' 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.
Before we wrap up, there’s one issue worth mentioning. Marrone Bio Innovations currently has a debt-to-equity ratio of 108%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
There are too many aspects of Marrone Bio Innovations to cover in one brief article, but the key fundamentals for the company can all be found in one place – Marrone Bio Innovations' company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:
Valuation: What is Marrone Bio Innovations 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 Marrone Bio Innovations 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 Marrone Bio Innovations’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.
This article by Simply Wall St is general in nature. 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.
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