U.S. markets closed
  • S&P Futures

    3,364.75
    -18.25 (-0.54%)
     
  • Dow Futures

    27,223.00
    -142.00 (-0.52%)
     
  • Nasdaq Futures

    11,537.75
    -50.25 (-0.43%)
     
  • Russell 2000 Futures

    1,576.30
    -12.70 (-0.80%)
     
  • Crude Oil

    38.83
    -0.74 (-1.87%)
     
  • Gold

    1,907.50
    -4.40 (-0.23%)
     
  • Silver

    24.37
    -0.20 (-0.81%)
     
  • EUR/USD

    1.1791
    +0.0001 (+0.01%)
     
  • 10-Yr Bond

    0.7780
    -0.0230 (-2.87%)
     
  • Vix

    33.35
    +0.89 (+2.74%)
     
  • GBP/USD

    1.3041
    -0.0001 (-0.01%)
     
  • USD/JPY

    104.4350
    -0.0590 (-0.06%)
     
  • BTC-USD

    13,699.50
    +4.20 (+0.03%)
     
  • CMC Crypto 200

    271.35
    +10.06 (+3.85%)
     
  • FTSE 100

    5,728.99
    -63.02 (-1.09%)
     
  • Nikkei 225

    23,402.67
    -83.13 (-0.35%)
     

When Can We Expect A Profit From IsoRay Inc (NYSEMKT:ISR)?

Hector Vargas

IsoRay Inc’s (NYSEMKT:ISR): IsoRay, Inc., through its subsidiary, IsoRay Medical, Inc., develops, manufactures, and sells isotope-based medical products and devices for the treatment of cancer and other malignant diseases in the United States. The US$37.8m market-cap posted a loss in its most recent financial year of -US$6.2m and a latest trailing-twelve-month loss of -US$6.2m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which ISR will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for ISR’s growth and when analysts expect the company to become profitable.

See our latest analysis for IsoRay

ISR is bordering on breakeven, according to Biotechs analysts. They expect the company to post a final loss in 2020, before turning a profit of US$1.2m in 2021. ISR is therefore projected to breakeven around a couple of months from now! How fast will ISR have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 59.9% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

AMEX:ISR Past Future Earnings September 25th 18
AMEX:ISR Past Future Earnings September 25th 18

I’m not going to go through company-specific developments for ISR given that this is a high-level summary, but, keep in mind that by and large a biotech has lumpy cash flows which are contingent on the product type and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing I’d like to point out is that ISR has no debt on its balance sheet, which is rare for a loss-making biotech, which typically has high debt relative to its equity. This means that ISR 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.

Next Steps:

There are too many aspects of ISR to cover in one brief article, but the key fundamentals for the company can all be found in one place – ISR’s company page on Simply Wall St. I’ve also compiled a list of relevant factors you should further research:

  1. Valuation: What is ISR 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 ISR 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 IsoRay’s board and the CEO’s back ground.

  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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.