Yahoo Finance Total Brain Limited (ASX:TTB): Are Analysts Optimistic?
Total Brain Limited (ASX:TTB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Total Brain Limited, together with its subsidiaries, develops and sells brain health products in the United States and Australia. On 30 June 2021, the AU$17m market-cap company posted a loss of AU$8.3m for its most recent financial year. Many investors are wondering about the rate at which Total Brain will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for Total Brain
Expectations from some of the Australian Healthcare analysts is that Total Brain is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of AU$1.8m in 2024. The company is therefore projected to breakeven around 3 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 91%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Total Brain's growth isn’t the focus of this broad overview, though, keep in mind that generally 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 The company has managed its capital prudently, with debt making up 24% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Total Brain 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 Total Brain, take a look at Total Brain's company page on Simply Wall St. We've also compiled a list of relevant factors you should further examine:
Valuation: What is Total Brain 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 Total Brain 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 Total Brain’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. 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.
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