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Analysts Expect Cryoport, Inc. (NASDAQ:CYRX) To Breakeven Soon

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Simply Wall St
·3 min read
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We feel now is a pretty good time to analyse Cryoport, Inc.'s (NASDAQ:CYRX) business as it appears the company may be on the cusp of a considerable accomplishment. Cryoport, Inc. provides temperature-controlled logistics and biostorage services to the life sciences industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The US$3.6b market-cap company posted a loss in its most recent financial year of US$18m and a latest trailing-twelve-month loss of US$22m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Cryoport's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for Cryoport

According to the 7 industry analysts covering Cryoport, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$174k in 2021. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 100% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving Cryoport's growth isn’t the focus of this broad overview, however, keep in mind that generally 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 Cryoport is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Cryoport's case is 93%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Cryoport to cover in one brief article, but the key fundamentals for the company can all be found in one place – Cryoport's company page on Simply Wall St. We've also put together a list of key factors you should look at:

  1. Valuation: What is Cryoport 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 Cryoport 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 Cryoport’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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.