Prenetics Global Limited (NASDAQ:PRE): Is Breakeven Near?
With the business potentially at an important milestone, we thought we'd take a closer look at Prenetics Global Limited's (NASDAQ:PRE) future prospects. Prenetics Global Limited operates as a diagnostics and genetic testing company in Hong Kong and the United Kingdom. The US$60m market-cap company’s loss lessened since it announced a US$190m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$23m, as it approaches breakeven. As path to profitability is the topic on Prenetics Global's 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.
Check out our latest analysis for Prenetics Global
Consensus from 3 of the American Healthcare analysts is that Prenetics Global is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$5.0m in 2024. Therefore, the company is expected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 111% 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.
Given this is a high-level overview, we won’t go into details of Prenetics Global's upcoming projects, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that Prenetics Global 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:
There are key fundamentals of Prenetics Global which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Prenetics Global, take a look at Prenetics Global's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:
Valuation: What is Prenetics Global 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 Prenetics Global 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 Prenetics Global’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.
