When Will Cryoport, Inc. (NASDAQ:CYRX) Become Profitable?
Cryoport, Inc. (NASDAQ:CYRX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Cryoport, Inc., a life sciences services company, provides temperature-controlled logistics solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company’s loss has recently broadened since it announced a US$284m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$296m, moving it further away from breakeven. As path to profitability is the topic on Cryoport's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Cryoport
Cryoport is bordering on breakeven, according to the 9 American Life Sciences analysts. They expect the company to post a final loss in 2024, before turning a profit of US$7.7m in 2025. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 38% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Cryoport's growth isn’t the focus of this broad overview, however, take into account that generally a life science company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.
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 73%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Cryoport, so if you are interested in understanding the company at a deeper level, take a look at Cryoport's company page on Simply Wall St. We've also put together a list of key factors you should look at:
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.
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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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