Cerus (CERS) AI Stock Analysis

• Market Cap: $289.47M
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.18
• Revenue Growth: 13.25%
• EPS Growth: 23.81%
• Country: US
• Employees: 614
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.03
• Shares Outstanding: 191,698,790
• 10 Day Avg. Volume: 1,815,627
• 30 Day Avg. Volume: 1,421,629
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 2.70
• Enterprise Value/Ebitda: -33.78
• 1Y Price Target: $3.50
• Price Target Upside: 127.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 54 Neutral
• Price Target: $1.50 ▼(-2.60% Downside)

Cerus Corporation's stock score is primarily influenced by its financial performance challenges, including high leverage and negative profitability, which weigh heavily on the overall score. However, the positive earnings call, with raised revenue guidance and international expansion, provides a strong counterbalance. Technical indicators suggest short-term bullish momentum, but valuation concerns persist due to the negative P/E ratio.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

International Expansion

Successful international adoption of INTERCEPT products enhances Cerus's global market presence and revenue diversification.

Product Innovation

New product launches like the INT200 Illuminator strengthen Cerus's competitive edge and expand its technological offerings.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder Cerus's ability to reinvest in growth and manage financial obligations effectively.

High Leverage

High leverage increases financial risk, potentially limiting Cerus's strategic flexibility and ability to weather economic downturns.

Cash Flow Challenges

Weak cash flow generation can constrain Cerus's operational capabilities and investment in future growth opportunities.

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 hospitals and blood banks. The company's revenue model is based on product sales, which include both the initial purchase of the INTERCEPT system and ongoing sales of disposable kits necessary for the pathogen inactivation process. Additionally, Cerus may earn revenue through collaborations and partnerships with other organizations in the healthcare sector, including licensing agreements and joint ventures that enhance market reach and product development. Key partnerships with blood centers and healthcare institutions also contribute to the company’s earnings by facilitating the adoption of its technology in various markets.

Cerus Financial Statement Overview

Summary

Cerus is experiencing modest revenue growth but continues to struggle with profitability and cash flow generation. The high leverage on the balance sheet adds financial risk, and the negative return on equity highlights ongoing challenges in generating returns for shareholders. The company needs to improve its cash flow management and profitability to enhance its financial stability.

Income Statement

Cerus has shown a modest revenue growth rate of 3.98% in the TTM, indicating some positive momentum. However, the company continues to face profitability challenges with a negative net profit margin of -10.23% and negative EBIT and EBITDA margins. The gross profit margin is relatively healthy at 55.99%, suggesting efficient cost management at the gross level, but the overall profitability remains a concern.

Balance Sheet

The company's balance sheet reflects high leverage with a debt-to-equity ratio of 1.79, which could pose financial risks. The return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio is not provided, but the high debt levels suggest limited financial flexibility.

Cash Flow

Cerus's cash flow situation is challenging, with a significant decline in free cash flow growth by -48.96% in the TTM. The operating cash flow to net income ratio is low at 0.12, indicating weak cash generation relative to net income. While the free cash flow to net income ratio is 0.78, the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	192.51M	180.27M	156.37M	162.05M	130.86M	91.92M
Gross Profit	107.98M	99.52M	86.40M	87.09M	67.38M	50.76M
EBITDA	-8.62M	-9.88M	-26.54M	-34.08M	-45.99M	-51.37M
Net Income	-18.88M	-20.92M	-37.49M	-42.83M	-54.38M	-59.86M
Balance Sheet
Total Assets	213.07M	200.92M	197.75M	218.09M	237.50M	221.41M
Cash, Cash Equivalents and Short-Term Investments	78.03M	80.45M	65.85M	102.15M	129.36M	133.59M
Total Debt	98.90M	98.10M	96.00M	87.24M	87.59M	66.89M
Total Liabilities	156.90M	144.02M	144.30M	149.53M	151.88M	117.61M
Stockholders Equity	55.43M	56.15M	52.65M	67.61M	84.62M	103.81M
Cash Flow
Free Cash Flow	3.42M	8.52M	-47.77M	-27.61M	-34.83M	-42.36M
Operating Cash Flow	5.71M	11.36M	-43.17M	-25.61M	-33.92M	-40.74M
Investing Cash Flow	-4.75M	-8.13M	8.62M	8.46M	12.69M	-49.56M
Financing Cash Flow	1.75M	4.96M	10.67M	4.19M	34.29M	91.78M

Cerus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.54 is above the 20-day moving average (MA) of 1.33, above the 50-day MA of 1.31, and above the 200-day MA of 1.47, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.99 is Neutral, neither overbought nor oversold. The STOCH value of 86.95 is Negative, 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
ZIMV	67 Neutral	533.28M	-27.19	-4.72%	―	-19.52%	94.65%
CERS	54 Neutral	$289.47M	―	-35.98%	―	13.25%	23.81%
LUNG	46 Neutral	72.12M	-1.24	-82.41%	―	18.24%	4.81%
SNWV	43 Neutral	307.76M	-4.16	257.37%	―	57.43%	-155.29%
RCEL	42 Neutral	139.75M	-2.66	―	―	38.32%	-1.31%
NNOX	40 Underperform	252.50M	-4.38	-28.30%	―	17.36%	9.38%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%