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With the business potentially at an important milestone, we thought we'd take a closer look at Cryoport, Inc.'s (NASDAQ:CYRX) future prospects. 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 US$1.9b market-cap company posted a loss in its most recent financial year of US$284m and a latest trailing-twelve-month loss of US$297m leading to an even wider gap between loss and breakeven. Many investors are wondering about the rate at which Cryoport will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
According to the 8 industry analysts covering Cryoport, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$5.6m in 2024. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 62% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Cryoport given that this is a high-level summary, however, take into account 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 issue worth mentioning. Cryoport currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Cryoport's case is 72%. Note that a higher debt obligation increases the risk in investing in the loss-making company.
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 compiled a list of important 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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