IsoRay Inc’s (AMEX: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. With the latest financial year loss of -US$6.17M and a trailing-twelve month of -US$6.21M, the US$27.96M market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on ISR’s investors mind, I’ve decided to gauge market sentiment. Below I will provide a high-level summary of the industry analysts’ expectations for ISR.

See our latest analysis for IsoRay

Expectation from analysts is ISR is on the verge of breakeven. They expect the company to post a final loss in 2021, before turning a profit of US$3.17M in 2022. So, ISR is predicted to breakeven approximately 4 years from today. What rate will ISR have to grow year-on-year in order to breakeven on this date? Using a line of best fit, I calculated an average annual growth rate of 52.35%, which is rather optimistic! If this rate turns out to be too aggressive, ISR may become profitable much later than analysts predict.

Given this is a high-level overview, I won’t go into detail the detail of ISR’s upcoming projects, though, 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 that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing I’d like to point out is that ISR has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. ISR currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

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 key aspects you should further research:

1. Historical Track Record: What has ISR’s 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 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 pass 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.