Cardiovascular Systems, Inc. (NASDAQ:CSII): Is Breakeven Near?

We feel now is a pretty good time to analyse Cardiovascular Systems, Inc.'s (NASDAQ:CSII) business as it appears the company may be on the cusp of a considerable accomplishment. Cardiovascular Systems, Inc., a medical device company, develops and commercializes various devices to treat peripheral and coronary artery diseases in the United States. The US$1.6b market-cap company announced a latest loss of US$13m on 30 June 2021 for its most recent financial year result. As path to profitability is the topic on Cardiovascular Systems' 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 Cardiovascular Systems

Consensus from 9 of the American Medical Equipment analysts is that Cardiovascular Systems is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$8.8m in 2023. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 74% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Cardiovascular Systems' upcoming projects, however, take into account that typically 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 aspect worth mentioning. The company has managed its capital prudently, with debt making up -0.2% 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 Cardiovascular Systems to cover in one brief article, but the key fundamentals for the company can all be found in one place – Cardiovascular Systems' company page on Simply Wall St. We've also put together a list of important aspects you should look at:

1. Valuation: What is Cardiovascular Systems 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 Cardiovascular Systems 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 Cardiovascular Systems’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. 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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