Amyris, Inc. (NASDAQ:AMRS): Are Analysts Optimistic?

We feel now is a pretty good time to analyse Amyris, Inc.'s (NASDAQ:AMRS) business as it appears the company may be on the cusp of a considerable accomplishment. Amyris, Inc., a synthetic biotechnology company, operates in the clean health and beauty, and flavors and fragrance markets in Europe, North America, Asia, and South America. The US$802m market-cap company’s loss lessened since it announced a US$270m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$213m, as it approaches breakeven. As path to profitability is the topic on Amyris' 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.

Our analysis indicates that AMRS is potentially undervalued!

According to the 8 industry analysts covering Amyris, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$7.2m in 2024. Therefore, the company is expected to breakeven roughly 2 years from now. 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 79% is expected, which signals high confidence from analysts. 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 Amyris' upcoming projects, though, bear in mind that generally 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 Amyris is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

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

1. Valuation: What is Amyris 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 Amyris 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 Amyris’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.