When Will Tissue Regenix Group plc (LON:TRX) Turn A Profit?

We feel now is a pretty good time to analyse Tissue Regenix Group plc's (LON:TRX) business as it appears the company may be on the cusp of a considerable accomplishment. Tissue Regenix Group plc, a medical technology company, develops and commercializes platform technologies in the field of bone graft substitutes and soft tissue in the United States and internationally. The UK£38m market-cap company’s loss lessened since it announced a US$1.7m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$1.1m, as it approaches breakeven. Many investors are wondering about the rate at which Tissue Regenix Group will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Tissue Regenix Group

Consensus from 2 of the British Biotechs analysts is that Tissue Regenix Group is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$597k in 2025. The company is therefore projected to breakeven just over a year from now. 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 171%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Tissue Regenix Group given that this is a high-level summary, though, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 35% 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:

This article is not intended to be a comprehensive analysis on Tissue Regenix Group, so if you are interested in understanding the company at a deeper level, take a look at Tissue Regenix Group's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:

1. Historical Track Record: What has Tissue Regenix Group's 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 Tissue Regenix Group'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.