In This Article:
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. The US$4.6m market-cap company announced a latest loss of US$11m on 31 December 2021 for its most recent financial year result. As path to profitability is the topic on ThermoGenesis Holdings' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for ThermoGenesis Holdings
According to some industry analysts covering ThermoGenesis Holdings, breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$2.2m in 2022. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 51%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of ThermoGenesis Holdings' upcoming projects, though, take into account that by and large 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 debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in this case, the company has significantly overshot. Note that a higher debt obligation 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 factors 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.