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Cytosorbents Corporation (NASDAQ:CTSO): Is Breakeven Near?

Simply Wall St
·3 mins read

Cytosorbents Corporation (NASDAQ:CTSO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Cytosorbents Corporation, a critical care focused immunotherapy company, engages in the research, development, and commercialization of medical devices with its blood purification technology platform incorporating a proprietary adsorbent and porous polymer technology. The US$374m market-cap company’s loss lessened since it announced a US$19m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$17m, as it approaches breakeven. The most pressing concern for investors is Cytosorbents' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Cytosorbents

Consensus from 7 of the American Medical Equipment analysts is that Cytosorbents is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$1.4m in 2022. The company is therefore projected to breakeven around 2 years from now. 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 74% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Given this is a high-level overview, we won’t go into details of Cytosorbents' upcoming projects, though, take into account that by and large 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. Cytosorbents currently has a relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Cytosorbents' case is 62%. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Cytosorbents which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Cytosorbents, take a look at Cytosorbents' company page on Simply Wall St. We've also put together a list of essential aspects you should look at:

  1. Valuation: What is Cytosorbents 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 Cytosorbents is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Cytosorbents’s board and the CEO’s background.

  3. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.