Cryoport, Inc.'s (NASDAQ:CYRX): Cryoport, Inc. provides temperature-controlled logistics and biostorage services to the life sciences industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The US$1.3b market-cap posted a loss in its most recent financial year of -US$18.3m and a latest trailing-twelve-month loss of -US$19.9m leading to an even wider gap between loss and 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.
According to the 6 industry analysts covering CYRX, the consensus is breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$2.2m in 2022. So, CYRX is predicted to breakeven approximately 2 years from today. How fast will CYRX have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 75% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, CYRX may become profitable much later than analysts predict.
Given this is a high-level overview, I won’t go into details of CYRX’s upcoming projects, though, take into account 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 no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which typically has high debt relative to its equity. This means that CYRX 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.
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 essential factors you should further research:
- 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.
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. 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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