Cytosorbents (CTSO) AI Stock Analysis

• Market Cap: $58.67M
• Dividend Yield: N/A
• Average Volume (3M): 137.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 1.80%
• EPS Growth: 33.06%
• Country: US
• Employees: 186
• Sector: Healthcare
• Sector Strength: 78
• Industry: Medical Equipment & Supplies
• EPS (TTM): -0.36
• Shares Outstanding: 54,830,147
• 10 Day Avg. Volume: 105,038
• 30 Day Avg. Volume: 137,923
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.55
• Price to Cash Flow (P/CF): -5.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.00
• Price Target Upside: 834.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

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 Business Overview & Revenue Model

Company Description

Cytosorbents 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 Money

Cytosorbents 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

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

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

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
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
8.64B	36.35M	29.36M	40.11M	39.45M	22.77M
	Gross Profit
8.63B	22.39M	15.40M	29.06M	28.40M	15.40M
	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 Sheet		Cash, Cash Equivalents and Short-Term Investments
22.37M	14.13M	22.14M	52.14M	71.42M	12.23M
	Total Assets
32.75M	53.26M	63.23M	89.52M	89.95M	27.38M
	Total Debt
9.94M	18.31M	18.25M	13.82M	1.03M	16.12M
	Net Debt
-12.43M	4.18M	-3.89M	-38.32M	-70.39M	3.89M
	Total Liabilities
15.81M	29.99M	27.86M	26.94M	10.73M	23.96M
	Stockholders Equity
16.93M	23.28M	35.38M	62.58M	79.22M	3.42M
Cash Flow		Free 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
21.37M	14.47M	4.96M	715.20K	66.35M	8.18M

Cytosorbents Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.07
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FMS	72 Outperform	$14.17B	24.40	3.87%	1.83%	-0.57%	8.25%
TMO	70 Outperform	$193.40B	30.99	13.15%	0.30%	0.05%	6.87%
MMM	64 Neutral	$81.57B	19.89	97.86%	1.88%	-18.72%	―
DVA	62 Neutral	$11.73B	13.27	159.08%	―	5.56%	45.02%
CTSO	61 Neutral	$58.67M	―	-118.50%	―	1.80%	33.06%
BAX	54 Neutral	$18.34B	136.07	-9.24%	2.67%	-14.00%	-184.82%
Sector *	49 Neutral	$6.84B	0.05	-53.14%	2.48%	24.49%	-3.26%

Cytosorbents Corporate Events

Cytosorbents Boosts Liquidity with Successful Rights Offering

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.

Cytosorbents Initiates Rights Offering to Raise Capital

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.

Cytosorbents Announces Rights Offering for Stockholders

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.