Amyris Inc’s (NASDAQ:AMRS): Amyris, Inc. provides various alternatives to a range of petroleum-sourced products worldwide. With the latest financial year loss of -US$97.33M and a trailing-twelve month of -US$139.21M, the US$249.16M market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on AMRS’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for AMRS.
According to the industry analysts covering AMRS, breakeven is near. They anticipate the company to incur a final loss in 2018, before generating positive profits of US$880.50K in 2019. AMRS is therefore projected to breakeven around a couple of months from now! What rate will AMRS have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 61.02%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving AMRS’s growth isn’t the focus of this broad overview, though, bear in mind that typically an oil and gas business has lumpy cash flows which are contingent on the natural resource and stage at which the company is operating. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
Before I wrap up, there’s one issue worth mentioning. AMRS currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
There are too many aspects of AMRS to cover in one brief article, but the key fundamentals for the company can all be found in one place – AMRS’s company page on Simply Wall St. I’ve also put together a list of relevant factors you should further examine:
- Historical Track Record: What has AMRS’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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Amyris’s board and the CEO’s back ground.
- 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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.