Standard BioTools Inc. (NASDAQ:LAB): Are Analysts Optimistic?

We feel now is a pretty good time to analyse Standard BioTools Inc.'s (NASDAQ:LAB) business as it appears the company may be on the cusp of a considerable accomplishment. Standard BioTools Inc., together with its subsidiaries, provides instruments, consumables, reagents, and software services for researchers and clinical laboratories in the Americas, Europe, the Middle East, Africa, and the Asia pacific. On 31 December 2023, the US$1.1b market-cap company posted a loss of US$75m for its most recent financial year. Many investors are wondering about the rate at which Standard BioTools will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Standard BioTools

Standard BioTools is bordering on breakeven, according to the 2 American Life Sciences analysts. They expect the company to post a final loss in 2025, before turning a profit of US$9.0m in 2026. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 44%, 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

Underlying developments driving Standard BioTools' growth isn’t the focus of this broad overview, though, keep in mind that generally a life science company has lumpy cash flows which are contingent on the product 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.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 39% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is Standard BioTools 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 Standard BioTools 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 Standard BioTools’s 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.

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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.