Cryoport, Inc.’s (NASDAQ:CYRX): Cryoport, Inc. provides cryogenic logistics solutions to the life sciences industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The US$351m market-cap company announced a latest loss of -US$9.6m on 31 December 2018 for its most recent financial year result. 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 4 Medical Equipment analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$3.9m in 2021. Therefore, CYRX is expected to breakeven roughly 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 66% 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 CYRX’s growth isn’t the focus of this broad overview, though, take into account that by and large 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 38% 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.
There are too many aspects of CYRX to cover in one brief article, but the key fundamentals for the company can all be found in one place – CYRX’s company page on Simply Wall St. I’ve also compiled a list of relevant 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.
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