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Cerus Corp (CERS)
NASDAQ:CERS
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Cerus
(NASDAQ:CERS)
60Neutral
Positive Factors
Product Launch
The rollout of IFC continues to gain momentum, with sales driven by more standing orders and deeper utilization within existing accounts.
Revenue Growth
Cerus Corporation reported a Q4 top line beat and drove 15% year-over-year product revenue growth in 2024, surpassing its initial guidance.
Negative Factors
Regulatory Setbacks
The CE mark review for INTERCEPT RBCs in Europe concluded without an approval, marking a disappointing setback for the company.
Cerus (CERS) vs. S&P 500 (SPY)
Market Cap
$269.40M
Dividend YieldN/A
Average Volume (3M)1.35M
Price to Earnings (P/E)―
Beta (1Y)3.02
Revenue Growth15.29%
EPS Growth45.45%
CountryUS
Employees288
SectorHealthcare
Sector Strength77
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-0.11
Shares Outstanding185,789,810
10 Day Avg. Volume1,650,134
30 Day Avg. Volume1,348,836
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.28
Price to Cash Flow (P/CF)13.10
P/FCF Ratio16.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.00Price Target Upside175.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Cerus Business Overview & Revenue Model
Company DescriptionCerus Corporation is a biomedical products company engaged in the development and commercialization of the INTERCEPT Blood System, a proprietary blood safety technology. The company operates primarily within the biotechnology and healthcare sectors, focusing on enhancing the safety of blood transfusions. Cerus's core products include systems designed to inactivate pathogens in platelets and plasma, which are critical components used in blood transfusions.
How the Company Makes MoneyCerus Corporation generates revenue through the sale of its INTERCEPT Blood System products to blood banks and hospitals. The company's revenue model is based on selling and distributing these pathogen inactivation systems globally, particularly in regions with stringent blood safety regulations. Key revenue streams include product sales and, to a lesser extent, government and institutional research grants. Significant partnerships with national blood services and health organizations also contribute to the company's earnings by expanding its market reach and facilitating broader adoption of its technology.
Cerus Financial Statement Overview
Summary
Cerus demonstrates strong revenue growth and improved cash flow management, positioning itself better in the medical equipment industry. However, ongoing profitability challenges and negative returns highlight the need for continued focus on operational efficiency and cost control to achieve sustainable profitability.Income Statement
Cerus shows positive revenue growth with a 15.3% increase from 2023 to 2024. Gross profit margin is solid at 55.2% in 2024, indicating efficient cost management. However, persistent net losses and negative EBIT and EBITDA margins highlight profitability challenges. Net profit margin improved to -11.6% in 2024 but remains a concern.65
Positive
Balance Sheet
The debt-to-equity ratio improved significantly from 1.82 in 2023 to 0.59 in 2024, reflecting reduced financial leverage. Return on equity remains negative due to net losses, impacting overall profitability. Equity ratio stands at 27.9%, suggesting a moderate reliance on equity financing.60
Neutral
Cash Flow
Operating cash flow turned positive in 2024, indicating improved cash generation. Free cash flow also improved, signaling better cash management. The operating cash flow to net income ratio is positive, reflecting efficient cash conversion from operations, though continued focus on cash flow sustainability is crucial.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 180.27M | 156.37M | 162.05M | 130.86M | 91.92M | Gross Profit |
| 99.52M | 86.40M | 87.09M | 67.38M | 50.76M | EBIT |
| -14.22M | -30.05M | -34.08M | -48.94M | -58.33M | EBITDA |
| -10.02M | -26.54M | -34.08M | -45.99M | -51.37M | Net Income Common Stockholders |
| -20.92M | -37.49M | -42.83M | -54.38M | -59.86M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 80.45M | 65.85M | 102.15M | 129.36M | 133.59M | Total Assets |
| 200.92M | 197.75M | 218.09M | 237.50M | 221.41M | Total Debt |
| 33.23M | 96.00M | 87.24M | 87.59M | 66.89M | Net Debt |
| 12.97M | 84.35M | 51.65M | 38.83M | 30.30M | Total Liabilities |
| 144.02M | 144.30M | 149.53M | 151.88M | 117.61M | Stockholders Equity |
| 56.15M | 52.65M | 67.61M | 84.62M | 103.81M |
| Cash Flow | Free Cash Flow | |||
| 8.52M | -47.77M | -27.61M | -34.83M | -42.36M | Operating Cash Flow |
| 11.36M | -43.17M | -25.61M | -33.92M | -40.74M | Investing Cash Flow |
| -8.13M | 8.62M | 8.46M | 12.69M | -49.56M | Financing Cash Flow |
| 4.96M | 10.67M | 4.19M | 34.29M | 91.78M |
Cerus Technical Analysis
Negative
1.45
Price Trends
1.72
Negative
1.72
Negative
1.85
Negative
Market Momentum
-0.09
Positive
37.94
Neutral
13.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CERS, the sentiment is Negative. The current price of 1.45 is below the 20-day moving average (MA) of 1.61, below the 50-day MA of 1.72, and below the 200-day MA of 1.85, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 13.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CERS.
Cerus Risk Analysis
Cerus disclosed 39 risk factors in its most recent earnings report. Cerus reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cerus Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $269.40M | ― | -38.45% | ― | 15.29% | 45.45% | |
58 Neutral | $353.40M | ― | 40.36% | ― | 13.57% | 89.73% | |
54 Neutral | $52.03M | 1.65 | -58.97% | ― | 36.45% | ― | |
49 Neutral | $95.30M | ― | -58.80% | ― | -100.00% | -24.28% | |
49 Neutral | $6.86B | 0.03 | -54.79% | 2.48% | 24.62% | -2.84% | |
42 Neutral | $107.89M | ― | -54.21% | ― | -78.55% | -0.92% | |
41 Neutral | $421.49M | ― | -54.15% | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
CERS
Cerus
1.45
-0.41
-22.04%
FATE
Fate Therapeutics
0.94
-6.10
-86.65%
HRTX
Heron Therapeutics
2.32
-0.64
-21.62%
CTMX
CytomX Therapeutics
0.65
-1.37
-67.82%
ANIX
Anixa Biosciences
2.96
-0.55
-15.67%
ALLO
Allogene Therapeutics
1.94
-2.26
-53.81%
Cerus Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -16.67% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Cerus Corporation's strong financial performance in 2024, marked by positive adjusted EBITDA and robust revenue growth driven by the IFC and global platelet businesses. However, challenges such as a decline in government contract revenue and increased operating expenses were noted. The overall sentiment is positive given the company's growth trajectory and market expansion efforts.Highlights
Positive Adjusted EBITDA Achieved
Cerus Corporation successfully achieved positive adjusted EBITDA for the full year 2024, marking a significant milestone in their long history.
Double-Digit Product Revenue Growth
Year-over-year double-digit product revenue growth for 2024 was driven by expansion in the global platelets business and rising demand in the INTERCEPT Fibrinogen Complex (IFC) business in the U.S.
Strong IFC Sales Expansion
IFC sales were up 42% over 2023 levels, totaling $9.2 million for the year, with the fourth quarter showing a 30% increase compared to the prior year.
Global Market Penetration and Expansion
Canadian Blood Services reached 100% pathogen reduction (PR) adoption for platelet production, and significant interest was shown in markets such as China, Brazil, and the Middle East.
Lowlights
Decline in Government Contract Revenue
Government contract revenue for 2024 decreased to $21.1 million from $30.4 million in 2023, primarily due to the completion of the U.S. Phase 3 ReCePI clinical trial.
Challenges in EMEA Gross Margins
Fourth-quarter product gross margins in EMEA were impacted by FX rates, a stronger U.S. dollar, and higher discard rates, leading to a slight decline in gross margins to 53.9%.
Operating Expenses Increase in Q4
Fourth-quarter operating expenses increased to $34.8 million from $31.6 million in Q4 2023, partially due to a cumulative catch-up of accrued expenses.
Company Guidance
During Cerus Corporation's fourth quarter and full-year 2024 earnings call, the company provided guidance for 2025, detailing several key financial metrics. They anticipate product revenue growth of 8% to 11% year-over-year. The company achieved positive adjusted EBITDA in 2024, a milestone they plan to build on, with expectations to maintain or improve this metric in 2025. Operating expenses are projected to rise modestly due to inflationary pressures, but Cerus aims to leverage these expenses to support revenue growth. The company also expects to continue generating positive operating cash flows in 2025, following $11.4 million in positive cash flow from operations in 2024. Additionally, the company is working on a potential new and enhanced CE Mark submission for INTERCEPT red blood cells in Europe and remains focused on expanding its INTERCEPT platelet and IFC product lines globally.Cerus Corporate Events
Executive/Board ChangesShareholder Meetings
Cerus Director Gail Schulze to Step Down
Neutral
Feb 6, 2025
On February 2, 2025, Gail Schulze, a director at Cerus Corporation, announced she would not seek re-election at the upcoming 2025 Annual Meeting. Her decision was not due to any disagreements with the company’s operations, policies, or practices, indicating no immediate impact on Cerus Corporation’s strategic direction or stakeholder interests.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.