We think now is a good time to analyze Bragg Gaming Group Inc.’s (TSE:BRAG) business. The company seems poised to achieve big things. Bragg Gaming Group Inc. provides a B2B online gaming technology platform and casino content aggregator worldwide. With losses of €3.8m in the most recent financial year and €5.3m in the last 12 months, the CA$197m market-cap company widened its losses as it moved further away from its breakeven target. As the path to profitability is of interest to Bragg Gaming Group’s investors, we decided to gauge market sentiment. We’ve compiled a summary of industry analysts’ expectations for the company, its breakeven year, and estimated growth rate.
View our latest analysis for Bragg Gaming Group
According to eight industry analysts covering Bragg Gaming Group, the consensus is that breakeven is near. Analysts expect the company to post a final loss in 2024 and generate a profit of €1.9 million in 2025. The company is therefore expected to breakeven just over a year from now. What year-over-year growth rate would the company need to achieve to breakeven on this date? Using a line of best fit, we calculated that the average annual growth rate is 97%, which is very strong. If this growth rate proves to be too steep, the company may become profitable much slower than analysts predict.
Earnings per Share Growth
As this is an overview, we won’t go into detail about Bragg Gaming Group’s company-specific developments, but consider that high growth rates are usually not unusual, especially when a company is in an investment period.
We note that the company manages its capital carefully, with debt accounting for 2.1% of its equity. This means that it is primarily funding its operations from equity capital, and its low debt load reduces the risks associated with investing in loss-making companies.
Next steps:
There are far too many aspects of Bragg Gaming Group to cover in one short article, but all of the key fundamentals about the company can be found in one place: Bragg Gaming Group’s company page on Simply Wall St. We’ve also compiled a list of relevant factors worth investigating further.
Valuation: What is Bragg Gaming Group worth today? Is the potential for future growth already priced into the price? The intrinsic value infographic in our free research report helps you visualize whether Bragg Gaming Group is currently undervalued by the market.
Management Team: Having an experienced management team at the helm instills confidence in our business. View the biographies of Bragg Gaming Group’s board members and CEO.
Other High-Performing Stocks: Are there other stocks with better track records and better prospects? See our free list of these great stocks here.
Have feedback about this article? Concerns about the content? Please contact us directly or email us at editorial-team (at) simplywallst.com.
This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.