Cardiovascular Systems Inc’s (NASDAQ:CSII): Cardiovascular Systems, Inc., a medical technology company, develops, manufactures, and markets devices to treat vascular diseases in the United States. With the latest financial year loss of -US$1.79M and a trailing-twelve month of -US$3.37M, the US$759.04M market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on CSII’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for CSII, its year of breakeven and its implied growth rate.
Expectation from analysts is CSII is on the verge of breakeven. They anticipate the company to incur a final loss in 2018, before generating positive profits of US$5.21M in 2019. Therefore, CSII is expected to breakeven roughly a few months from now. In order to meet this breakeven date, I calculated the rate at which CSII must grow year-on-year. It turns out an average annual growth rate of 119.08% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, CSII may become profitable much later than analysts predict.
Underlying developments driving CSII’s growth isn’t the focus of this broad overview, though, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I’d like to point out is that CSII has managed its capital judiciously, with debt making up 17.01% of equity. This means that CSII has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
There are key fundamentals of CSII which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at CSII, take a look at CSII’s company page on Simply Wall St. I’ve also compiled a list of relevant factors you should further research:
- Valuation: What is CSII 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 CSII 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 Cardiovascular Systems’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.