Yahoo Finance Bragg Gaming Group Inc. (TSE:BRAG): When Will It Breakeven?
With the business potentially at an important milestone, we thought we'd take a closer look at Bragg Gaming Group Inc.'s (TSE:BRAG) future prospects. Bragg Gaming Group Inc. operates as a technology and content supplier to the gaming industry worldwide. The CA$111m market-cap company’s loss lessened since it announced a €7.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of €4.3m, as it approaches breakeven. As path to profitability is the topic on Bragg Gaming Group's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Bragg Gaming Group
Bragg Gaming Group is bordering on breakeven, according to the 6 Canadian Hospitality analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of €3.9m in 2024. So, the company is predicted to breakeven just over a year from now. 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 98% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Bragg Gaming Group's growth isn’t the focus of this broad overview, but, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 7.1% 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 too many aspects of Bragg Gaming Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bragg Gaming Group's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:
Valuation: What is Bragg Gaming Group 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 Bragg Gaming Group 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 Bragg Gaming Group’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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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