When will Cytosorbents Corporation (NASDAQ:CTSO) make a profit?

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We think it’s a good time to analyze Cytosorbents Corporation (NASDAQ: CTSO) As it seems, the company may be on the verge of a huge achievement. Cytosorbents Corporation engages in the research, development and commercialization of medical devices with its blood purification technology platform incorporating proprietary adsorbent and porous polymer technology. The company’s loss has widened recently since announcing a full-year loss of $25 million, compared to the last twelve-month loss of $29 million, l further away from equilibrium. The most pressing concern for investors is Cytosorbents’ path to profitability – when will it break even? We’ve put together a brief overview of industry analysts’ expectations for the company, its year of profitability and its implied growth rate.

Cytosorbents is close to equilibrium, according to the 3 American analysts of Medical Equipment. They predict that the business will incur a terminal loss in 2023, before generating positive profits of US$8.0 million in 2024. The business is therefore expected to break even in about 2 years. In order to meet this balance date, we have calculated the rate at which the company must grow from one year to the next. It turns out that an average annual growth rate of 75% is expected, which signals a lot of confidence from analysts. If the business grows at a slower pace, it will become profitable later than expected.

NasdaqCM: Growth in earnings per share of CTSO as of August 3, 2022

Developments underlying Cytosorbents growth are not the focus of this general overview, however, consider that in general a high rate of growth is not unusual, particularly when a company is in investment period.

Before concluding, there is one aspect worth mentioning. Cytosorbents currently has no debt on its balance sheet, which is quite unusual for a growing, cash-consuming company, which typically has high debt to equity ratios. This means that the company has operated solely on its equity investment and has no debt. This aspect reduces the risk associated with investing in the loss-making company.

Next steps:

There are fundamentals of cytosorbents that are not covered in this article, but we must re-emphasize that this is just a basic overview. For a more comprehensive overview of Cytosorbents, see the Cytosorbents company page on Simply Wall St. We have also compiled a list of relevant aspects that you should consider in more detail:

  1. Historical review: How has Cytosorbents performed in the past? Go deeper into the analysis of past history and take a look at the free visual representations of our analysis for clarity.
  2. Management team: An experienced management team at the helm boosts our confidence in the company – take a look at who sits on Cytosorbents’ board and the CEO’s background.
  3. Other High Performing Stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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