U.S. Markets closed
  • S&P Futures

    4,344.50
    +26.75 (+0.62%)
     
  • Dow Futures

    34,216.00
    +173.00 (+0.51%)
     
  • Nasdaq Futures

    14,136.50
    +149.75 (+1.07%)
     
  • Russell 2000 Futures

    1,934.70
    +6.40 (+0.33%)
     
  • Crude Oil

    87.10
    +0.49 (+0.57%)
     
  • Gold

    1,797.70
    +4.60 (+0.26%)
     
  • Silver

    22.76
    +0.08 (+0.37%)
     
  • EUR/USD

    1.1157
    +0.0010 (+0.0893%)
     
  • 10-Yr Bond

    1.8070
    -0.0410 (-2.22%)
     
  • Vix

    30.49
    -1.47 (-4.60%)
     
  • GBP/USD

    1.3402
    +0.0020 (+0.1514%)
     
  • USD/JPY

    115.3400
    +0.0380 (+0.0330%)
     
  • BTC-USD

    37,303.66
    +1,580.33 (+4.42%)
     
  • CMC Crypto 200

    845.16
    +25.65 (+3.13%)
     
  • FTSE 100

    7,554.31
    +84.53 (+1.13%)
     
  • Nikkei 225

    26,722.45
    +552.15 (+2.11%)
     

Marrone Bio Innovations, Inc. (NASDAQ:MBII): Are Analysts Optimistic?

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • MBII

With the business potentially at an important milestone, we thought we'd take a closer look at Marrone Bio Innovations, Inc.'s (NASDAQ:MBII) future prospects. 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. With the latest financial year loss of US$20m and a trailing-twelve-month loss of US$17m, the US$158m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Marrone Bio Innovations' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Marrone Bio Innovations

Consensus from 6 of the American Chemicals analysts is that Marrone Bio Innovations is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$886k in 2023. The company is therefore projected to breakeven around 2 years from now. 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 68% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving Marrone Bio Innovations' growth isn’t the focus of this broad overview, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Marrone Bio Innovations is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Marrone Bio Innovations' case is 89%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

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 essential aspects you should further examine:

  1. Historical Track Record: What has Marrone Bio Innovations' 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.

  2. 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' board and the CEO’s background.

  3. 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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.