With the business potentially at an important milestone, we thought we'd take a closer look at BioHarvest Sciences Inc.'s (NASDAQ:BHST) future prospects. BioHarvest Sciences Inc. operates as a biotechnology company. With the latest financial year loss of US$13m and a trailing-twelve-month loss of US$17m, the US$106m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is BioHarvest Sciences' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for BioHarvest Sciences

BioHarvest Sciences is bordering on breakeven, according to the 3 American Personal Products analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$1.9m in 2026. Therefore, the company is expected to breakeven just over a year 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 63%, which is extremely buoyant. 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 BioHarvest Sciences' upcoming projects, but, bear 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.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 29% 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 BioHarvest Sciences to cover in one brief article, but the key fundamentals for the company can all be found in one place – BioHarvest Sciences' company page on Simply Wall St. We've also compiled a list of key factors you should look at:

1. Valuation: What is BioHarvest Sciences 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 BioHarvest Sciences 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 BioHarvest Sciences’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.