Cesca Therapeutics Inc’s (NASDAQ:KOOL): Cesca Therapeutics Inc. develops, commercializes, and markets a range of automated technologies and products for cell-based therapeutics in the United States, China, rest of Asia, Europe, and internationally. The US$8.18M market-cap posted a loss in its most recent financial year of -US$4.57M and a latest trailing-twelve-month loss of -US$5.43M leading to an even wider gap between loss and breakeven. As path to profitability is the topic on KOOL’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for KOOL.
KOOL is bordering on breakeven, according to analysts. They expect the company to post a final loss in 2021, before turning a profit of US$1.42M in 2022. Therefore, KOOL is expected to breakeven roughly 4 years from now. What rate will KOOL 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 37.06%, which is rather optimistic! If this rate turns out to be too aggressive, KOOL may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for KOOL given that this is a high-level summary, though, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing I’d like to point out is that KOOL has managed its capital prudently, with debt making up 23.14% of equity. This means that KOOL 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 KOOL 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 KOOL, take a look at KOOL’s company page on Simply Wall St. I’ve also put together a list of essential aspects you should look at:
- Valuation: What is KOOL 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 KOOL 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 Cesca Therapeutics’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.