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Cytosorbents Corp (CTSO)
NASDAQ:CTSO

Cytosorbents (CTSO) AI Stock Analysis

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Cytosorbents

(NASDAQ:CTSO)

61Neutral
Cytosorbents' stock score reflects financial challenges with persistent losses and cash flow issues, offset by positive earnings call developments and improved liquidity from corporate events. Technical indicators show some bullish momentum, but valuation concerns limit the overall score.
Positive Factors
International Expansion
The company successfully launched PuriFi, a novel hemoperfusion pump, in select international markets.
Product Launch
The launch of PuriFi, a novel hemoperfusion pump, continues to go well with many evaluations ongoing.
Regulatory Progress
The FDA has accepted the 510(k) De Novo application for DrugSorb-ATR, and it is now under review.
Negative Factors
Gross Margin Decline
The company's blended product gross margin for the quarter decreased to 61%, compared to 72% in 3Q23 and 75% in 2Q24.
Net Loss
The company reported a net loss of $0.08 per share.
Revenue Miss
The company reported total revenues of $9.4M for the quarter, compared to consensus estimated revenue of $10.4M.

Cytosorbents (CTSO) vs. S&P 500 (SPY)

Cytosorbents Business Overview & Revenue Model

Company DescriptionCytosorbents Corporation is a medical technology company specializing in critical care therapies. The company operates in the healthcare sector, focusing on developing and commercializing innovative blood purification technologies. Its flagship product, CytoSorb, is an extracorporeal cytokine adsorber designed to remove cytokines and other inflammatory mediators from the blood to control immune responses in critically ill patients. CytoSorbents targets a range of applications in the treatment of sepsis, trauma, liver failure, and other conditions characterized by excessive inflammation.
How the Company Makes MoneyCytosorbents generates revenue primarily through the sale of its CytoSorb device, which is marketed and sold to hospitals and healthcare institutions for use in intensive care units. The company earns money by selling these devices directly to end-users or through distribution partners in various regions. Additionally, Cytosorbents engages in research and development collaborations and receives grants and funding from government and private entities to support the advancement of its technologies. The company's revenue is heavily influenced by the adoption of CytoSorb in clinical settings and the expansion of its distribution network across different countries. Strategic partnerships with medical device companies and healthcare providers also contribute to its earnings by facilitating the wider application and acceptance of its products in the market.

Cytosorbents Financial Statement Overview

Summary
Cytosorbents faces significant financial challenges, with consistent losses and negative cash flows impacting its financial health. While revenue growth in the TTM period offers some optimism, the company struggles with high leverage and operational inefficiencies. Improving profitability and cash flow generation are crucial for long-term sustainability.
Income Statement
45
Neutral
Cytosorbents' revenue has shown significant volatility, with a sharp increase in TTM (Trailing-Twelve-Months) revenue, indicating potential growth opportunities. However, the company continues to operate at a loss, as reflected in negative EBIT and net income, which has worsened over time. The negative EBIT and EBITDA margins suggest operational inefficiencies or high fixed costs. Despite the revenue growth, persistent losses and negative profit margins highlight challenges in achieving profitability.
Balance Sheet
50
Neutral
The balance sheet reflects high leverage with a consistent increase in total liabilities over the years. The company has a low equity base, which is concerning for financial stability. The debt-to-equity ratio is high, indicating potential financial risk. However, the company has maintained adequate cash reserves, which provide some liquidity cushion. The return on equity remains negative due to consistent losses, impacting shareholder value.
Cash Flow
40
Negative
Cytosorbents shows negative operating cash flow, indicating challenges in generating cash from its core operations. The free cash flow remains negative, and the free cash flow growth rate is also concerning. Despite financing inflows, the operating cash flow to net income ratio suggests inefficiency in converting net income into cash. The cash flow situation highlights a need for better cash management or operational improvements.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
8.64B36.35M29.36M40.11M39.45M22.77M
Gross Profit
8.63B22.39M15.40M29.06M28.40M15.40M
EBIT
-21.65M-31.21M-31.52M-22.75M-10.37M-18.97M
EBITDA
-17.17M-29.18M-30.00M-22.01M-9.71M-18.74M
Net Income Common Stockholders
-2.35B-28.51M-32.81M-24.56M-7.84M-19.27M
Balance SheetCash, Cash Equivalents and Short-Term Investments
22.37M14.13M22.14M52.14M71.42M12.23M
Total Assets
32.75M53.26M63.23M89.52M89.95M27.38M
Total Debt
9.94M18.31M18.25M13.82M1.03M16.12M
Net Debt
-12.43M4.18M-3.89M-38.32M-70.39M3.89M
Total Liabilities
15.81M29.99M27.86M26.94M10.73M23.96M
Stockholders Equity
16.93M23.28M35.38M62.58M79.22M3.42M
Cash FlowFree Cash Flow
-19.17M-22.59M-34.69M-18.29M-7.29M-18.28M
Operating Cash Flow
-18.49M-21.66M-28.23M-14.01M-5.61M-16.76M
Investing Cash Flow
-681.16K-936.24K-6.46M-4.28M-1.68M-1.52M
Financing Cash Flow
21.37M14.47M4.96M715.20K66.35M8.18M

Cytosorbents Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.07
Price Trends
50DMA
1.05
Positive
100DMA
0.99
Positive
200DMA
1.02
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
50.68
Neutral
STOCH
35.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTSO, the sentiment is Positive. The current price of 1.07 is below the 20-day moving average (MA) of 1.10, above the 50-day MA of 1.05, and above the 200-day MA of 1.02, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 35.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTSO.

Cytosorbents Risk Analysis

Cytosorbents disclosed 39 risk factors in its most recent earnings report. Cytosorbents 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

Cytosorbents Peers Comparison

Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FMFMS
72
Outperform
$14.17B24.403.87%1.83%-0.57%8.25%
TMTMO
70
Outperform
$193.40B30.9913.15%0.30%0.05%6.87%
MMMMM
64
Neutral
$81.57B19.8997.86%1.88%-18.72%
DVDVA
62
Neutral
$11.73B13.27159.08%5.56%45.02%
61
Neutral
$58.67M-118.50%1.80%33.06%
BABAX
54
Neutral
$18.34B136.07-9.24%2.67%-14.00%-184.82%
49
Neutral
$6.84B0.05-53.14%2.48%24.49%-3.26%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CTSO
Cytosorbents
1.07
0.10
10.31%
MMM
3M
146.10
61.80
73.31%
BAX
Baxter International
34.55
-6.38
-15.59%
DVA
DaVita
141.12
5.12
3.76%
FMS
Fresenius Medical Care
23.17
3.92
20.36%
TMO
Thermo Fisher
508.90
-74.81
-12.82%

Cytosorbents Earnings Call Summary

Earnings Call Date: Nov 7, 2024 | % Change Since: 18.89% | Next Earnings Date: Mar 25, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with strong revenue growth, significant reductions in operating expenses, and important regulatory progress for DrugSorb ATR. However, the decline in gross margins and decreased grant revenue are notable challenges. The sentiment leans towards optimism with strategic advancements in product development and market readiness.
Highlights
Strong Revenue Growth
Q3 2024 product sales were $8.6 million, above the previously guided range of $8.3 million to $8.5 million and representing 11% growth year-over-year.
Operating Expense Reduction
Operating expenses decreased 25% year-over-year, driving a 40% reduction in operating loss.
Regulatory Progress for DrugSorb ATR
Submitted De Novo medical device marketing application to the FDA for DrugSorb ATR, with regulatory decisions expected in 2025. The application is eligible for priority review.
Positive Clinical Data
The STAR-T trial showed reduced bleeding severity in isolated CABG population, with a favorable benefit-to-risk profile.
Lowlights
Gross Margin Decline
Product gross margins were 61% for the quarter, down from 71% year-over-year due to planned production slowdown and short-term manufacturing issue.
Decrease in Grant Revenue
Third quarter '24 grant revenue was approximately $800,000 compared to approximately $1.1 million in the prior year, due to the conclusion of several grants.
Pending FDA Approval for DrugSorb ATR
While FDA review is underway, approval is not expected until sometime in 2025, creating uncertainty in the timeline for U.S. market entry.
Company Guidance
In the CytoSorbents' Q3 2024 earnings call, the company reported product sales of $8.6 million, exceeding their guidance of $8.3 million to $8.5 million and marking an 11% year-over-year growth. The product gross margins stood at 61%, slightly down from 71% the previous year, due to a planned slowdown in production and a resolved short-term manufacturing issue. Operating expenses decreased by 25%, leading to a 40% reduction in operating loss, and the cash burn was reduced to $2.7 million from $5 million in the previous quarter. CytoSorbents also highlighted their progress on the DrugSorb ATR device, with FDA and Health Canada regulatory decisions anticipated in 2025, potentially opening a $300 million initial total addressable market, expected to grow significantly. The company is targeting increased operational efficiency and margin expansion, aiming to achieve 75% to 80% product gross margins in the future.

Cytosorbents Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Cytosorbents Boosts Liquidity with Successful Rights Offering
Positive
Jan 13, 2025

CytoSorbents Corporation successfully closed an oversubscribed rights offering, raising $6.25 million in aggregate gross proceeds, which satisfies a debt covenant, unlocking $5 million in restricted cash. This financial maneuver significantly strengthens the company’s balance sheet, increasing liquidity by approximately $10.8 million, and supports their ongoing innovation and expansion efforts, particularly in pursuing U.S. and Canadian regulatory approval for DrugSorb-ATR.

Private Placements and FinancingBusiness Operations and Strategy
Cytosorbents Initiates Rights Offering to Raise Capital
Neutral
Dec 23, 2024

CytoSorbents Corporation announced the commencement of a rights offering, distributing non-transferable Subscription Right Warrants to stockholders and certain warrantholders. The offering, which allows the purchase of units comprising common stock and warrants at $1.00 per unit, aims to raise capital and potentially strengthen the company’s market position, with implications for shareholder value and operational expansion.

Private Placements and Financing
Cytosorbents Announces Rights Offering for Stockholders
Neutral
Dec 9, 2024

CytoSorbents Corporation announced a rights offering, providing eligible stockholders and warrantholders the chance to purchase units consisting of common stock and warrants at a set price. This financial move could intrigue investors looking to expand their holdings, especially with the oversubscription privilege allowing for additional unit purchases. However, investors should act promptly as the rights and potential ownership stakes will expire without value if not exercised by January 10, 2025.

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.