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ThermoGenesis Holdings, Inc. (NASDAQ:THMO): Are Analysts Optimistic?

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·3 min read
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We feel now is a pretty good time to analyse ThermoGenesis Holdings, Inc.'s (NASDAQ:THMO) business as it appears the company may be on the cusp of a considerable accomplishment. 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$9.5m and a trailing-twelve-month loss of US$17.4m, the US$24m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on ThermoGenesis Holdings' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for ThermoGenesis Holdings

Expectations from some of the American Medical Equipment analysts is that ThermoGenesis Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$20m in 2021. The company is therefore projected to breakeven just over a year from now. How fast will the company 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 42% year-on-year, on average, which signals high confidence from analysts. 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 ThermoGenesis Holdings' upcoming projects, however, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. ThermoGenesis Holdings currently has a relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in ThermoGenesis Holdings' case is 99%. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of ThermoGenesis Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – ThermoGenesis Holdings' company page on Simply Wall St. We've also put together a list of important aspects you should further research:

  1. 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.

  2. 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.

  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.