Analysts Expect Breakeven For ChromaDex Corporation (NASDAQ:CDXC) Before Long
With the business potentially at an important milestone, we thought we'd take a closer look at ChromaDex Corporation's (NASDAQ:CDXC) future prospects. ChromaDex Corporation operates as a bioscience company focusing on developing healthy aging products. The US$119m market-cap company posted a loss in its most recent financial year of US$17m and a latest trailing-twelve-month loss of US$6.5m shrinking the gap between loss and breakeven. The most pressing concern for investors is ChromaDex's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for ChromaDex
According to the 6 industry analysts covering ChromaDex, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$6.3m in 2025. The company is therefore projected to breakeven around 2 years 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 74%, 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 ChromaDex's growth isn’t the focus of this broad overview, but, keep in mind that typically life science companies, depending on the stage of product development, have irregular periods of cash flow. So, 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 ChromaDex has no debt on its balance sheet, which is quite unusual for a cash-burning life science company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of ChromaDex which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at ChromaDex, take a look at ChromaDex's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:
Valuation: What is ChromaDex 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 ChromaDex 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 ChromaDex’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.
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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.
