Yahoo Finance When Will Biom'Up S.A. (EPA:BUP) Breakeven?
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Biom'Up S.A.'s (EPA:BUP): Biom'Up S.A. designs, develops, manufactures, and sells collagen-based absorbable medical devices for biosurgery primarily in France. The company’s loss has recently broadened since it announced a -€31.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of -€39.7m, moving it further away from breakeven. The most pressing concern for investors is BUP’s path to profitability – when will it breakeven? I’ve put together a brief outline of industry analyst expectations for BUP, its year of breakeven and its implied growth rate.
Check out our latest analysis for Biom'Up
BUP is bordering on breakeven, according to the 3 Medical Equipment analysts. They expect the company to post a final loss in 2020, before turning a profit of €9.6m in 2021. Therefore, BUP is expected to breakeven roughly 2 years from now. How fast will BUP have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 75% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
I’m not going to go through company-specific developments for BUP given that this is a high-level summary, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I would like to bring into light with BUP is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in BUP’s case is 65%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on BUP, so if you are interested in understanding the company at a deeper level, take a look at BUP’s company page on Simply Wall St. I’ve also compiled a list of pertinent aspects you should look at:
Valuation: What is BUP 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 BUP 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 Biom'Up’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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
