We feel now is a pretty good time to analyse BRAIN Biotech AG's (ETR:BNN) business as it appears the company may be on the cusp of a considerable accomplishment. BRAIN Biotech AG engages in the research and development of Bio-based products and solutions in Germany, the United States, France, the Netherlands, and the United Kingdom. The €61m market-cap company posted a loss in its most recent financial year of €8.3m and a latest trailing-twelve-month loss of €8.4m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on BRAIN Biotech'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.

View our latest analysis for BRAIN Biotech

BRAIN Biotech is bordering on breakeven, according to the 4 German Chemicals analysts. They expect the company to post a final loss in 2025, before turning a profit of €2.2m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 65% is expected, 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 BRAIN Biotech's upcoming projects, however, keep in mind that by and large 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 aspect worth mentioning. BRAIN Biotech currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of 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 BRAIN Biotech 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 BRAIN Biotech, take a look at BRAIN Biotech's company page on Simply Wall St. We've also compiled a list of important aspects you should further research:

1. Valuation: What is BRAIN Biotech 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 BRAIN Biotech is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on BRAIN Biotech’s 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.

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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.