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With the business potentially at an important milestone, we thought we'd take a closer look at ThermoGenesis Holdings, Inc.'s (NASDAQ:THMO) future prospects. ThermoGenesis Holdings, Inc. develops, commercializes, and markets a range of automated technologies for chimeric antigen receptor (CAR-T) and other cell-based therapies. With the latest financial year loss of US$16m and a trailing-twelve-month loss of US$14m, the US$33m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which ThermoGenesis Holdings 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 some industry analysts covering ThermoGenesis Holdings, breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$3.0m in 2022. So, the company is predicted to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 62% year-on-year, on average, 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 ThermoGenesis Holdings' growth isn’t the focus of this broad overview, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with ThermoGenesis Holdings is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in ThermoGenesis Holdings' case is 70%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
There are key fundamentals of ThermoGenesis Holdings 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 ThermoGenesis Holdings, take a look at ThermoGenesis Holdings' company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:
Historical Track Record: What has ThermoGenesis Holdings' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on ThermoGenesis Holdings' 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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