Cryoport, Inc.'s (NASDAQ:CYRX): Cryoport, Inc. provides temperature controlled logistics solutions to the life sciences industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company’s loss has recently broadened since it announced a -US$9.6m loss in the full financial year, compared to the latest trailing-twelve-month loss of -US$19.6m, moving it further away from breakeven. Many investors are wondering the rate at which CYRX will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for CYRX, its year of breakeven and its implied growth rate.
CYRX is bordering on breakeven, according to the 6 Medical Equipment analysts. They expect the company to post a final loss in 2020, before turning a profit of US$2.9m in 2021. So, CYRX is predicted to breakeven approximately 2 years from today. In order to meet this breakeven date, I calculated the rate at which CYRX must grow year-on-year. It turns out an average annual growth rate of 85% is expected, which is rather optimistic! If this rate turns out to be too aggressive, CYRX may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for CYRX given that this is a high-level summary, but, keep 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 CYRX has managed its capital judiciously, with debt making up 13% of equity. This means that CYRX has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on CYRX, so if you are interested in understanding the company at a deeper level, take a look at CYRX’s company page on Simply Wall St. I’ve also compiled a list of pertinent aspects you should look at:
- Valuation: What is CYRX 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 CYRX 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 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.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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