ThermoGenesis Holdings, Inc. (NASDAQ:THMO): Are Analysts Optimistic?
ThermoGenesis Holdings, Inc. (NASDAQ:THMO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 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$8.0m market-cap company’s loss lessened since it announced a US$11m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$9.0m, as it approaches breakeven. 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.
See our latest analysis for ThermoGenesis Holdings
ThermoGenesis Holdings is bordering on breakeven, according to some American Medical Equipment analysts. They expect the company to post a final loss in 2023, before turning a profit of US$2.3m in 2024. The company is therefore projected to breakeven around 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 67% 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.
Given this is a high-level overview, we won’t go into details of ThermoGenesis Holdings' upcoming projects, however, keep in mind that typically 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 114%. Generally, the rule of thumb is 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 around investing in the loss-making company.
Next Steps:
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 key 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.
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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.
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