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Market Sentiment Around Loss-Making Amyris, Inc. (NASDAQ:AMRS)
Amyris, Inc. (NASDAQ:AMRS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. 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 company’s loss has recently broadened since it announced a US$270m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$341m, moving it further away from breakeven. Many investors are wondering about the rate at which Amyris will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for Amyris
Consensus from 6 of the American Chemicals analysts is that Amyris is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$114m in 2025. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 75% year-on-year, on average, which signals high confidence from analysts. 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 Amyris' upcoming projects, though, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one issue worth mentioning. Amyris currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
There are key fundamentals of Amyris 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 Amyris, take a look at Amyris' company page on Simply Wall St. We've also put together a list of essential factors you should further research:
- Historical Track Record: What has Amyris' 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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Amyris' board and the CEO’s background.
- 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.
Valuation is complex, but we're helping make it simple.
Find out whether Amyris is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
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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.
Amyris, Inc. operates as a biotechnology company in Europe, North America, Asia, South America, and internationally.
Concerning outlook with weak fundamentals.