Stock Analysis

BioLife Solutions, Inc. (NASDAQ:BLFS) Is Expected To Breakeven In The Near Future

NasdaqCM:BLFS
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BioLife Solutions, Inc. (NASDAQ:BLFS) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. BioLife Solutions, Inc. develops, manufactures, and markets bioproduction tools and services for the cell and gene therapy (CGT) industry in the United States, Europe, the Middle East, Africa, and internationally. With the latest financial year loss of US$66m and a trailing-twelve-month loss of US$63m, the US$958m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on BioLife Solutions' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for BioLife Solutions

BioLife Solutions is bordering on breakeven, according to the 7 American Life Sciences analysts. They expect the company to post a final loss in 2025, before turning a profit of US$5.6m in 2026. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 68% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
NasdaqCM:BLFS Earnings Per Share Growth July 17th 2024

We're not going to go through company-specific developments for BioLife Solutions given that this is a high-level summary, however, bear in mind that generally a life science company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 7.3% 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:

This article is not intended to be a comprehensive analysis on BioLife Solutions, so if you are interested in understanding the company at a deeper level, take a look at BioLife Solutions' company page on Simply Wall St. We've also put together a list of essential factors you should look at:

  1. Valuation: What is BioLife Solutions 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 BioLife Solutions 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 BioLife Solutions’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.

Valuation is complex, but we're helping make it simple.

Find out whether BioLife Solutions 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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Valuation is complex, but we're helping make it simple.

Find out whether BioLife Solutions 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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com