Cerus (CERS) AI Stock Analysis

• Market Cap: $395.70M
• Dividend Yield: N/A
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: 13.03%
• EPS Growth: 21.28%
• Country: US
• Employees: 614
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.00
• Shares Outstanding: 192,087,500
• 10 Day Avg. Volume: 873,312
• 30 Day Avg. Volume: 1,326,499
• PEG Ratio: 0.29
• Price to Book (P/B): 5.06
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 33.35
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 2.96
• Enterprise Value/Ebitda: -55.42
• 1Y Price Target: $4.50
• Price Target Upside: 115.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $2.00 ▼(-4.31% Downside)

Cerus Corporation's stock score is primarily impacted by financial instability and valuation concerns, despite positive technical indicators. The company's high leverage and ongoing losses pose significant risks, while the technical analysis suggests some positive momentum. The earnings call provided an optimistic outlook, but it is not factored into the score due to weight redistribution.

Positive Factors

Revenue Growth

The 15% YoY revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.

International Expansion

Partnerships like the one with the German Red Cross enhance Cerus's international presence, potentially increasing market share and revenue.

Positive EBITDA

Consistent positive EBITDA reflects operational efficiency and financial health, supporting sustainable growth and investment capacity.

Negative Factors

High Leverage

High leverage can increase financial risk, limit flexibility, and strain cash flow, potentially impacting long-term stability.

Profitability Challenges

Negative profitability indicates ongoing struggles to convert revenue into profit, which could hinder growth and investor confidence.

Regulatory Delays

Regulatory delays can slow product rollout and revenue growth, affecting market competitiveness and strategic timelines.

Cerus Business Overview & Revenue Model

Company Description

Cerus Corporation operates as a biomedical products company. The company focuses on developing and commercializing the INTERCEPT Blood System to enhance blood safety. Its INTERCEPT Blood System, a proprietary technology for controlling biological replication that is designed to reduce blood-borne pathogens in donated blood components intended for transfusion. The company offers INTERCEPT Blood Systems for platelets and plasma, which is designed to inactivate blood-borne pathogens in platelets and plasma donated for transfusion; INTERCEPT Blood System for red blood cells to inactivate blood-borne pathogens in red blood cells donated for transfusion; and INTERCEPT Blood System for Cryoprecipitation that uses its plasma system to produce pathogen reduced cryoprecipitated fibrinogen complex for the treatment and control of bleeding, including massive hemorrhage associated with fibrinogen deficiency, as well as pathogen reduced plasma, cryoprecipitate reduced. It sells platelet and plasma systems through its direct sales force and distributors in the United States, Europe, the Commonwealth of Independent States, the Middle East, Latin America, and internationally. The company was incorporated in 1991 and is headquartered in Concord, California.

How the Company Makes Money

Cerus generates revenue primarily through the sale of its INTERCEPT Blood System and related products to blood banks, hospitals, and healthcare providers. The company earns income from direct sales of its systems and consumables, which are used in the pathogen reduction process. Additionally, Cerus may receive revenue from licensing agreements and collaborations with other companies in the healthcare sector. Significant partnerships with blood centers and regulatory approvals enhance its market presence and contribute to consistent earnings. The company also focuses on expanding its product offerings and market reach, which plays a crucial role in driving its revenue growth.

Cerus Financial Statement Overview

Summary

Cerus shows modest revenue growth but faces significant profitability and cash flow challenges. High leverage and negative returns on equity indicate financial instability. Despite stable gross profit margins, the overall financial health is concerning due to persistent losses and cash flow issues.

Income Statement

Cerus has shown a modest revenue growth rate of 3.47% in the TTM, indicating some positive momentum. However, the company continues to face profitability challenges with a negative net profit margin of -9.81% and negative EBIT and EBITDA margins. The gross profit margin is relatively stable at 56.09%, suggesting efficient cost management at the gross level, but overall profitability remains a concern.

Balance Sheet

The company's debt-to-equity ratio is high at 1.78, indicating significant leverage, which could pose financial risks. Return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity in the capital structure. Overall, the balance sheet reflects financial instability and potential risk due to high debt levels.

Cash Flow

Cerus's cash flow situation is challenging, with a significant decline in free cash flow growth by -95.09% in the TTM. The operating cash flow to net income ratio is low at 0.07, indicating limited cash generation from operations relative to net income. The free cash flow to net income ratio is better at 0.60, but overall cash flow management remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	199.19M	180.27M	156.37M	162.05M	130.86M	91.92M
Gross Profit	109.92M	99.52M	86.40M	87.09M	67.38M	50.76M
EBITDA	-5.87M	-10.02M	-26.34M	-33.52M	-45.99M	-51.37M
Net Income	-15.96M	-20.92M	-37.49M	-42.78M	-54.37M	-59.86M
Balance Sheet
Total Assets	215.19M	200.92M	197.75M	218.09M	237.50M	221.41M
Cash, Cash Equivalents and Short-Term Investments	78.51M	80.45M	65.85M	102.15M	129.36M	133.59M
Total Debt	98.19M	98.10M	96.00M	87.24M	87.59M	66.89M
Total Liabilities	152.98M	144.02M	144.30M	149.53M	151.88M	117.61M
Stockholders Equity	61.46M	56.15M	52.65M	67.61M	84.62M	103.81M
Cash Flow
Free Cash Flow	168.00K	8.52M	-47.77M	-27.61M	-34.83M	-43.43M
Operating Cash Flow	3.57M	11.36M	-43.17M	-25.61M	-33.92M	-41.81M
Investing Cash Flow	-12.07M	-8.13M	8.62M	8.46M	12.69M	-49.56M
Financing Cash Flow	2.01M	4.96M	10.67M	4.19M	34.29M	91.78M

Cerus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CERS, the sentiment is Positive. The current price of 2.09 is below the 20-day moving average (MA) of 2.09, above the 50-day MA of 1.85, and above the 200-day MA of 1.49, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 65.57 is Neutral, neither overbought nor oversold. The STOCH value of 74.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CERS.

Cerus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCMD	76 Outperform	$675.43M	38.56	8.80%	―	9.28%	21.00%
BWAY	75 Outperform	$463.99M	72.51	11.05%	―	27.37%	269.84%
VMD	72 Outperform	$275.25M	22.08	10.53%	―	18.90%	29.22%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CERS	48 Neutral	$395.70M	-26.80	-27.77%	―	13.03%	21.28%
OM	45 Neutral	$82.68M	-0.43	-92.33%	―	4.65%	68.71%
MASS	44 Neutral	$195.44M	―	-42.72%	―	4.49%	3.61%