Amyris, Inc. (NASDAQ:AMRS): Is Breakeven Near?

By
Simply Wall St
Published
March 04, 2020

Amyris, Inc.'s (NASDAQ:AMRS): Amyris, Inc. operates as an integrated renewable products company. The US$476m market-cap posted a loss in its most recent financial year of -US$223.1m and a latest trailing-twelve-month loss of -US$240.1m leading to an even wider gap between loss and breakeven. Many investors are wondering the rate at which AMRS will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for AMRS.

See our latest analysis for Amyris

According to the 2 industry analysts covering AMRS, the consensus is breakeven is near. They expect the company to post a final loss in 2020, before turning a profit of US$9.4m in 2021. AMRS is therefore projected to breakeven around a few months from now. How fast will AMRS have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 61% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, AMRS may become profitable much later than analysts predict.

NasdaqGS:AMRS Past and Future Earnings, March 4th 2020

I’m not going to go through company-specific developments for AMRS given that this is a high-level summary, though, take into account 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 I would like to bring into light with AMRS 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:

This article is not intended to be a comprehensive analysis on AMRS, so if you are interested in understanding the company at a deeper level, take a look at AMRS’s company page on Simply Wall St. I’ve also put together a list of pertinent aspects you should look at:

  1. Valuation: What is AMRS 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 AMRS 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 back ground.
  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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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