Analysts Expect ThermoGenesis Holdings, Inc. (NASDAQ:THMO) To Breakeven Soon

With the business potentially at an important milestone, we thought we'd take a closer look at ThermoGenesis Holdings, Inc.'s (NASDAQ:THMO) future prospects. ThermoGenesis Holdings, Inc. develops, commercializes, and markets a range of automated technologies for chimeric antigen receptor (CAR-T) and other cell-based therapies. With the latest financial year loss of US$11m and a trailing-twelve-month loss of US$14m, the US$2.6m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which ThermoGenesis Holdings will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for ThermoGenesis Holdings

Expectations from some of the American Medical Equipment analysts is that ThermoGenesis Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$2.1m in 2024. The company is therefore projected to breakeven around 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 54%, 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, however, keep in mind that by and large 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 issue worth mentioning. ThermoGenesis Holdings currently has a debt-to-equity ratio of 162%. 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 compiled a list of pertinent factors you should further research:

1. 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.
2. 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.
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.