Cryoport, Inc.'s (NASDAQ:CYRX) Profit Outlook
We feel now is a pretty good time to analyse Cryoport, Inc.'s (NASDAQ:CYRX) business as it appears the company may be on the cusp of a considerable accomplishment. Cryoport, Inc., a life sciences services company, provides temperature-controlled logistics solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. With the latest financial year loss of US$75m and a trailing-twelve-month loss of US$77m, the US$2.7b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Cryoport's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Cryoport
According to the 9 industry analysts covering Cryoport, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$13m in 2023. Therefore, the company is expected to breakeven roughly 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 65%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Cryoport's growth isn’t the focus of this broad overview, but, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 18% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Cryoport to cover in one brief article, but the key fundamentals for the company can all be found in one place – Cryoport's company page on Simply Wall St. We've also put together a list of pertinent aspects 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.
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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