Cytosorbents Corporation (NASDAQ:CTSO) Is Expected To Breakeven In The Near Future

Cytosorbents Corporation (NASDAQ:CTSO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Cytosorbents Corporation, a critical care focused immunotherapy company, engages in the research, development, and commercialization of medical devices with its blood purification technology platform incorporating a proprietary adsorbent and porous polymer technology. The US$382m market-cap company’s loss lessened since it announced a US$19m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$11m, as it approaches breakeven. As path to profitability is the topic on Cytosorbents' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Cytosorbents

Cytosorbents is bordering on breakeven, according to the 7 American Medical Equipment analysts. They expect the company to post a final loss in 2022, before turning a profit of US$19m in 2023. So, the company is predicted to breakeven approximately 3 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 77% 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.

Underlying developments driving Cytosorbents' growth isn’t the focus of this broad overview, though, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 19% 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 key fundamentals of Cytosorbents 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 Cytosorbents, take a look at Cytosorbents' company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Valuation: What is Cytosorbents 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 Cytosorbents 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 Cytosorbents’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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