📊 CERS Key Takeaways
Investment Thesis
Cerus demonstrates strong top-line growth (+16.1% YoY) and positive free cash flow generation, but fundamental profitability metrics are deeply concerning with negative net margins (-6.7%), operating margins (-3.7%), and poor returns on equity (-24.3%), indicating the company's revenue growth is not translating to sustainable profitability. The high debt-to-equity ratio (1.31x) combined with negative interest coverage (-1.9x) and significant operating losses raises questions about long-term financial viability despite adequate near-term liquidity.
CERS Strengths
- Revenue growth of 16.1% YoY demonstrates market demand for products
- Positive free cash flow of $1.1M and operating cash flow of $4.8M shows cash generation capability
- Adequate short-term liquidity with current ratio of 1.73x and $20.0M cash position
CERS Risks
- Persistently unprofitable with -6.7% net margin and -3.7% operating margin indicating structural profitability challenges
- High leverage with $84.0M long-term debt and 1.31x debt-to-equity ratio combined with negative interest coverage ratio of -1.9x creates financial distress risk
- Deteriorating returns metrics (ROE -24.3%, ROA -7.0%) show the business is not efficiently deploying capital despite revenue growth
Key Metrics to Watch
- Path to operating profitability and improvement in operating margin trajectory
- Gross margin expansion potential and operating expense discipline
- Debt reduction progress and achievement of positive interest coverage ratio
CERS Financial Metrics
💡 AI Analyst Insight
The relatively thin 0.5% FCF margin may limit capital allocation flexibility.
CERS Profitability Ratios
CERS vs Healthcare Sector
How CERUS CORP compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CERS Balance Sheet & Liquidity
CERS 5-Year Financial Trend
5-Year Trend Summary: CERUS CORP's revenue has grown significantly by 47% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.21 indicates the company is currently unprofitable.
CERS Growth Metrics (YoY)
CERS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2018 | $10.8M | -$13.4M | $-0.11 |
| Q2 2018 | $9.5M | -$13.3M | $-0.10 |
| Q1 2018 | $7.0M | -$13.9M | $-0.11 |
| Q3 2017 | $10.2M | -$13.4M | $-0.12 |
| Q2 2017 | $9.3M | -$17.0M | $-0.16 |
| Q1 2017 | $7.0M | -$16.9M | $-0.17 |
| Q3 2016 | $8.0M | -$14.1M | $-0.14 |
| Q2 2016 | $8.8M | -$8.5M | $-0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CERS Capital Allocation
CERS SEC Filings
Access official SEC EDGAR filings for CERUS CORP (CIK: 0001020214)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CERS
What is the AI rating for CERS?
CERUS CORP (CERS) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CERS's key strengths?
Revenue growth of 16.1% YoY demonstrates market demand for products. Positive free cash flow of $1.1M and operating cash flow of $4.8M shows cash generation capability.
What are the risks of investing in CERS?
Persistently unprofitable with -6.7% net margin and -3.7% operating margin indicating structural profitability challenges. High leverage with $84.0M long-term debt and 1.31x debt-to-equity ratio combined with negative interest coverage ratio of -1.9x creates financial distress risk.
What is CERS's revenue and growth?
CERUS CORP reported revenue of $233.8M.
Does CERS pay dividends?
CERUS CORP does not currently pay dividends.
Where can I find CERS SEC filings?
Official SEC filings for CERUS CORP (CIK: 0001020214) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CERS's EPS?
CERUS CORP has a diluted EPS of $-0.08.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.