ChromaDex Corporation's (NASDAQ:CDXC) Shift From Loss To Profit
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. With the latest financial year loss of US$17m and a trailing-twelve-month loss of US$6.5m, the US$108m market-cap company alleviated its loss by moving closer towards its target of 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
ChromaDex is bordering on breakeven, according to the 5 American Life Sciences analysts. They expect the company to post a final loss in 2024, before turning a profit of US$6.7m in 2025. The company is therefore projected to breakeven just over a year from today. 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 92% is expected, 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, take into account that generally life science companies, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
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 usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
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.
