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Cerus Corp (CERS)
NASDAQ:CERS
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Cerus
(NASDAQ:CERS)
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Rating:54Neutral
Price Target:
$1.50
▼(-6.25% 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 (CERS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$306.72M
Dividend YieldN/A
Average Volume (3M)1.49M
Price to Earnings (P/E)―
Beta (1Y)2.16
Revenue Growth13.25%
EPS Growth23.81%
CountryUS
Employees614
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.03
Shares Outstanding191,698,790
10 Day Avg. Volume1,392,796
30 Day Avg. Volume1,494,319
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue1.51
Enterprise Value/Gross Profit2.70
Enterprise Value/Ebitda-33.78
Forecast
1Y Price Target
$3.50Price Target Upside118.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Cerus Business Overview & Revenue Model
Company DescriptionCerus 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 MoneyCerus 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 Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook with significant revenue growth, strong IFC sales, and successful international expansion, despite challenges in the China market and increased operating expenses.Q2-2025 Updates
Positive Updates
Record Product Revenue
Cerus Corporation reported a product revenue of $52.4 million for Q2 2025, marking a 16% year-over-year increase. The company has raised its full-year 2025 product revenue guidance to a range of $200 million to $203 million from the previous $194 million to $200 million.
Strong Growth in INTERCEPT Fibrinogen Complex (IFC) Sales
IFC product revenue for Q2 was $5.6 million, significantly up from $2 million in the prior year period. Full-year 2025 IFC sales are now expected to be between $16 million and $18 million, up from the previous guidance of $12 million to $15 million.
Positive Non-GAAP Adjusted EBITDA
Cerus Corporation achieved its fifth consecutive quarter of positive non-GAAP adjusted EBITDA, totaling $935,000 for Q2 2025.
Expansion and Innovations in Product Offerings
The INT200 Illuminator received CE Mark approval and was launched, enhancing operations in blood centers across approximately 40 countries.
Successful Launch and Adoption in International Markets
Canadian Blood Services transitioned to 100% routine use of INTERCEPT platelets, and there was significant growth in the Middle East with Saudi Arabia, Kuwait, and UAE leading platelet growth.
Negative Updates
Challenges in China Market
The NMPA in China requested additional data for local processing requirements, leading Cerus to temporarily withdraw its submission to strengthen it with the new data.
OpEx Increase Driven by Inflation and Growth Investments
Operating expenses for Q2 2025 totaled $40.1 million, up from $33.9 million in Q2 2024, due to cost of living adjustments and increased R&D expenses.
Company Guidance
During the Cerus Corporation's second quarter 2025 earnings call, the company raised its full-year 2025 product revenue guidance to a range of $200 million to $203 million, up from the previous range of $194 million to $200 million. This increase is largely driven by the strong demand for INTERCEPT's fibrinogen complex (IFC), with IFC product revenue reaching $5.6 million in Q2 compared to $2 million in the prior year. The company also reported a 16% year-over-year increase in product revenue for Q2, totaling $52.4 million, and achieved its fifth consecutive quarter of positive non-GAAP adjusted EBITDA, amounting to $935,000. Cerus continues to experience growth across its INTERCEPT product portfolio, especially in North America and the EMEA region, with a notable expansion in platelet sales and the successful launch of the INT200 Illuminator. The company remains focused on achieving positive non-GAAP adjusted EBITDA for the full year, supported by strong commercial execution and strategic investments.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.45
Neutral
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.40
Negative
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.35
Negative
| 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
Positive
1.60
Price Trends
1.36
Positive
1.37
Positive
1.46
Positive
Market Momentum
0.08
Negative
59.07
Neutral
79.93
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 1.6 is above the 20-day moving average (MA) of 1.50, above the 50-day MA of 1.36, and above the 200-day MA of 1.46, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 79.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CERS.
Cerus Risk Analysis
Cerus disclosed 39 risk factors in its most recent earnings report. Cerus 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
Cerus Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $316.99M | 22.84 | 7.64% | ― | 6.15% | -54.24% | |
74 Outperform | $301.36M | 51.96 | 9.70% | ― | 27.22% | 695.07% | |
73 Outperform | $264.52M | 20.12 | 10.79% | ― | 17.11% | 45.34% | |
63 Neutral | $288.69M | ― | -46.85% | ― | 14.65% | -86.36% | |
54 Neutral | $306.72M | ― | -35.98% | ― | 13.25% | 23.81% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $220.93M | ― | -87.65% | ― | 2.47% | 56.93% |
* Healthcare Sector Average
CERS
Cerus
1.60
-0.29
-15.34%
TCMD
Tactile Systems Technology
14.22
-0.06
-0.42%
VMD
Viemed Healthcare
6.82
-1.90
-21.79%
BWAY
Brainsway
15.08
5.69
60.60%
OM
Outset Medical
12.45
3.48
38.80%
MASS
908 Devices
8.00
4.53
130.55%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.