We feel now is a pretty good time to analyse ThermoGenesis Holdings, Inc.'s (NASDAQ:THMO) business as it appears the company may be on the cusp of a considerable accomplishment. ThermoGenesis Holdings, Inc. develops, commercializes, and markets a range of automated technologies for chimeric antigen receptor (CAR-T) and other cell-based therapies. The US$2.5m market-cap company posted a loss in its most recent financial year of US$11m and a latest trailing-twelve-month loss of US$14m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on ThermoGenesis Holdings' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Expectations from some of the American Medical Equipment analysts is that ThermoGenesis Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$5.9m in 2024. Therefore, the company is expected 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 56% is expected, 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 ThermoGenesis Holdings' upcoming projects, though, 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 would like to bring into light with ThermoGenesis Holdings is its debt-to-equity ratio of 138%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on ThermoGenesis Holdings, so if you are interested in understanding the company at a deeper level, take a look at ThermoGenesis Holdings' company page on Simply Wall St. We've also put together a list of important factors you should further research:
Historical Track Record: What has ThermoGenesis Holdings' 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 ThermoGenesis Holdings' 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.
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