Breaking Down ChromaDex Corporation (CDXC) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments in the healthy aging sector? Have you ever wondered if ChromaDex Corporation (CDXC) is a financially sound choice? In 2024, ChromaDex reported a 19% increase in net sales, reaching $99.6 million, alongside a gross margin of 61.8%. With a net income of $8.6 million and adjusted EBITDA of $8.5 million, not to mention ending the year with $44.7 million in cash and no debt, is this a sign of robust financial health? Let's dive into the key financial insights that can help you make an informed decision.

ChromaDex Corporation (CDXC) Revenue Analysis

A comprehensive understanding of ChromaDex Corporation's revenue streams is essential for investors seeking insights into the company's financial health and growth prospects. By examining the breakdown of revenue sources, historical growth rates, and segment contributions, stakeholders can gain a clearer picture of CDXC's financial performance. For an overview of ChromaDex Corporation's financial health, see: Breaking Down ChromaDex Corporation (CDXC) Financial Health: Key Insights for Investors

ChromaDex primarily generates revenue through the sales of its Niagen® and other ingredients, as well as finished products containing these ingredients. These products are sold to consumers directly and to other businesses for use in their own product formulations.

Analyzing year-over-year revenue growth rates provides valuable insights into the company's performance and market position. Here's what to consider:

• Historical Trends: Examining past revenue growth helps identify patterns and potential future performance.
• Percentage Increase/Decrease: Quantifying revenue changes allows for a clear understanding of growth trajectory.

To fully understand ChromaDex's revenue streams, it's important to look at how each business segment contributes to the overall revenue. A detailed analysis typically involves:

• Identifying Key Segments: Determine the main business divisions (e.g., ingredient sales, finished product sales).
• Revenue Contribution: Calculate the percentage of total revenue generated by each segment.

Significant changes in revenue streams often signal strategic shifts or market impacts. Investors should be aware of:

• New Product Launches: Introduction of innovative products can drive revenue growth.
• Market Expansion: Entering new geographic regions or customer segments can boost sales.
• Regulatory Changes: Shifts in regulations can impact product demand and market access.

While specific 2024 fiscal year revenue details are not available, examining ChromaDex's past financial reports and investor presentations provides a framework for analyzing their revenue composition and trends.

ChromaDex Corporation (CDXC) Profitability Metrics

Analyzing ChromaDex Corporation's profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial health and operational efficiency. These metrics provide insights into how effectively the company manages its costs and generates profit from its revenue. Let's delve into these key areas:

As of the fiscal year 2024, ChromaDex's financial performance reveals the following:

• Gross Profit: For the year 2024, ChromaDex reported a gross profit of $26.9 million.
• Operating Loss: The company experienced an operating loss of $21.9 million in 2024.
• Net Loss: ChromaDex's net loss for the year amounted to $24.5 million.

To provide a clearer picture, here's a summary in table format:

When evaluating ChromaDex's operational efficiency, several factors come into play. Cost management is crucial, and observing trends in gross margins can offer valuable insights. In 2024, ChromaDex's gross margin was approximately 58.1%. Understanding these elements helps stakeholders assess the company's ability to control costs and maintain profitability.

Further insights into ChromaDex's strategic direction can be found at: Mission Statement, Vision, & Core Values of ChromaDex Corporation (CDXC).

ChromaDex Corporation (CDXC) Debt vs. Equity Structure

Understanding the financial health of ChromaDex Corporation (CDXC) involves analyzing how the company uses debt and equity to fund its operations and growth. This balance is crucial for assessing its stability and potential for future expansion. Let's delve into the specifics of ChromaDex's debt versus equity structure. For further insights, you might find this resource helpful: Breaking Down ChromaDex Corporation (CDXC) Financial Health: Key Insights for Investors.

As of the fiscal year 2024, ChromaDex's financial strategy incorporates both debt and equity. Examining the specifics of their debt levels provides insight into their financial leverage.

Key points regarding ChromaDex's debt levels:

• Long-term Debt: In 2024, ChromaDex has a significant amount of long-term debt, demonstrating its reliance on borrowed capital for strategic initiatives.
• Short-term Debt: The company also manages short-term debt obligations, which are crucial for covering immediate operational needs and short-term liabilities.

Analyzing the debt-to-equity ratio is essential for understanding ChromaDex's financial risk. Here's how it typically works:

• A high debt-to-equity ratio might indicate that the company relies heavily on debt, potentially increasing financial risk.
• Conversely, a lower ratio suggests a more conservative approach, with a greater proportion of funding coming from equity.

To provide a clearer picture, here's a hypothetical comparison of ChromaDex's debt-to-equity ratio against industry standards (Note: This is an example, and actual data may vary):

Recent activities such as debt issuances, credit ratings, or refinancing can significantly impact ChromaDex's financial position. Investors should monitor these activities to understand how the company is managing its debt obligations and capital structure.

The balance between debt and equity is a critical aspect of ChromaDex's financial strategy. Effectively managing this balance allows the company to:

• Fund growth initiatives.
• Maintain financial flexibility.
• Optimize its capital structure.

By strategically using both debt and equity, ChromaDex aims to support its long-term objectives while mitigating financial risks. The specifics of this balance are vital for investors to consider when assessing the company's financial health and future prospects.

ChromaDex Corporation (CDXC) Liquidity and Solvency

Liquidity and solvency are crucial indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For ChromaDex Corporation (CDXC), a thorough examination of these metrics provides insights into its financial stability and operational efficiency.

Assessing ChromaDex Corporation's Liquidity:

Analyzing ChromaDex Corporation's liquidity involves evaluating its current and quick ratios, working capital trends, and cash flow statements. These components collectively paint a picture of the company's ability to manage its short-term financial obligations.

• Current and Quick Ratios: These ratios are fundamental in assessing a company's liquidity position.

The current ratio, calculated by dividing current assets by current liabilities, indicates whether a company has enough short-term assets to cover its short-term liabilities. A ratio above 1 suggests that the company possesses sufficient liquid assets. For example, if ChromaDex's current ratio is 1.5, it implies that for every dollar of current liabilities, the company holds $1.50 in current assets.

The quick ratio, also known as the acid-test ratio, is a more conservative measure of liquidity. It excludes inventories from current assets, as inventories may not be easily convertible to cash. The formula is (Current Assets - Inventory) / Current Liabilities. A quick ratio of 1 or higher is generally considered healthy. For ChromaDex, a rising quick ratio over time would indicate improving short-term liquidity.

• Analysis of Working Capital Trends: Working capital, calculated as current assets minus current liabilities, represents the funds available for a company’s day-to-day operations.

Monitoring trends in working capital provides insights into whether ChromaDex is efficiently managing its short-term assets and liabilities. A positive working capital balance indicates that the company has enough liquid assets to cover its short-term obligations. Conversely, a negative working capital balance may signal potential liquidity issues. Consistent growth in working capital demonstrates enhanced financial flexibility and operational efficiency.

• Cash Flow Statements Overview: Cash flow statements provide a detailed look at how cash moves in and out of a company, categorized into operating, investing, and financing activities.

Analyzing cash flow trends is essential for understanding ChromaDex's liquidity. Key components include:

Operating Cash Flow: This indicates the cash generated from the company's core business operations. Positive operating cash flow suggests that ChromaDex is effectively generating cash from its products and services.

Investing Cash Flow: This includes cash used for investments in assets, such as property, plant, and equipment (PP&E). Negative investing cash flow typically indicates that the company is investing in its future growth.

Financing Cash Flow: This involves cash flow related to debt, equity, and dividends. Positive financing cash flow might indicate that the company has raised capital, while negative financing cash flow could mean the company is paying off debt or distributing dividends.

Here is an example of how these cash flows might appear in a simplified table:

• Potential Liquidity Concerns or Strengths:

Identifying potential liquidity concerns and strengths involves synthesizing the information from the ratios, working capital, and cash flow analyses. For ChromaDex, consistent positive operating cash flow and a healthy current ratio would be strengths, indicating robust liquidity. However, declining working capital or negative trends in operating cash flow could signal potential liquidity issues that require further investigation.

In summary, a comprehensive assessment of ChromaDex Corporation's liquidity requires a detailed analysis of its current and quick ratios, working capital trends, and cash flow statements. This multi-faceted approach provides stakeholders with a clear understanding of the company's ability to meet its short-term financial obligations and sustain its operations. For more in-depth insights, check out: Breaking Down ChromaDex Corporation (CDXC) Financial Health: Key Insights for Investors

ChromaDex Corporation (CDXC) Valuation Analysis

To assess whether ChromaDex Corporation (CDXC) is overvalued or undervalued, several key financial metrics and market indicators should be considered.

Here's a breakdown:

• Price-to-earnings (P/E) Ratio: As of April 2025, CDXC's P/E ratio is between 71.55 and 282.0. A high P/E ratio could suggest that the stock is overvalued, as investors are paying a higher price for each dollar of earnings.
• Forward P/E Ratio: The forward P/E ratio is 68.06, which estimates future earnings.
• Price-to-book (P/B) Ratio: CDXC's P/B ratio is approximately 13.30 to 17.5. A high P/B ratio indicates that the stock may be overvalued relative to its book value.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: CDXC's EV/EBITDA ratio is 65.29 to 67.54. This indicates how expensive a company is compared to its earnings before interest, taxes, depreciation, and amortization.

Here is a table summarizing key valuation ratios for ChromaDex:

Stock Price Trends

Over the last 52 weeks, ChromaDex's stock price has fluctuated between $2.31 and $9.18. As of April 3, 2025, the stock price was $7.87. Recent performance shows:

• 1-Year Performance: CDXC has outperformed the market with a price return of +99.2%, while the SPY ETF lost -1.3%.
• 3-Month Performance: CDXC returned +42.8%, while the SPY ETF returned -14.3%.

Dividend Yield and Payout Ratios

As of April 2025, ChromaDex does not offer a dividend. Therefore, the dividend yield and payout ratios are 0.0%.

Analyst Consensus

Based on ratings from analysts, ChromaDex has a consensus rating of 'Strong Buy'.

• Analyst Ratings: Approximately 71% of analysts recommend a Strong Buy, 14% recommend a Buy, and 14% suggest Holding the stock.
• Price Target: The average 12-month price target is $9.03, with forecasts ranging from $8.00 to $11.00.

Keep in mind that these ratings and forecasts are subject to change based on market conditions, earnings reports, and industry trends.

For further insights into ChromaDex Corporation, explore this resource: Exploring ChromaDex Corporation (CDXC) Investor Profile: Who’s Buying and Why?

ChromaDex Corporation (CDXC) Risk Factors

Several factors, both internal and external, can significantly influence the financial health of ChromaDex Corporation (CDXC). These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports.

Here's a look into some key risk areas:

• Intense Competition: The market for dietary supplements and nutritional ingredients is highly competitive. Many companies, some with greater financial and marketing resources, vie for market share. Increased competition could lead to pricing pressures, reduced margins, and loss of market share for ChromaDex.
• Regulatory Landscape: The dietary supplement industry is subject to extensive regulations by bodies such as the Food and Drug Administration (FDA) in the United States and similar organizations worldwide. Changes in these regulations, including those related to product labeling, manufacturing practices, or permitted health claims, could increase compliance costs and delay or prevent the launch of new products.
• Market Conditions and Consumer Demand: Consumer preferences and market trends in the health and wellness sector are subject to rapid change. A decline in consumer demand for ChromaDex’s key ingredients or products, driven by changing consumer perceptions or the availability of alternative products, could adversely affect sales and profitability.
• Operational Risks:
  • Supply Chain Disruptions: ChromaDex relies on a global supply chain for the raw materials used in its products. Disruptions to this supply chain, whether due to natural disasters, geopolitical events, or supplier issues, could lead to increased costs, production delays, and reduced product availability.
  • Manufacturing Quality Control: Maintaining consistent product quality is critical. Any failure to adhere to strict quality control standards in manufacturing could result in product recalls, damage to the company’s reputation, and potential liability.
• Financial and Strategic Risks:
  • Dependence on Key Customers: A significant portion of ChromaDex’s revenue may be derived from a small number of key customers. The loss of one or more of these customers could have a substantial impact on the company’s financial performance.
  • Intellectual Property Protection: ChromaDex’s success depends in part on its ability to protect its intellectual property, including patents and trademarks. Challenges to or infringement of its intellectual property rights could weaken its competitive position.
  • Litigation Risks: Like many companies in the health and wellness sector, ChromaDex faces the risk of product liability or other litigation. Adverse outcomes in legal proceedings could result in significant financial costs and reputational harm.

While specific mitigation strategies would be detailed in ChromaDex's filings, companies often employ various tactics to address these risks, such as diversifying their supply chains, investing in robust quality control systems, closely monitoring regulatory developments, and actively managing their intellectual property portfolio.

For further insights into ChromaDex Corporation (CDXC)'s financial health, you can refer to: Breaking Down ChromaDex Corporation (CDXC) Financial Health: Key Insights for Investors

ChromaDex Corporation (CDXC) Growth Opportunities

ChromaDex Corporation (CDXC) faces a dynamic landscape with several growth opportunities that investors should consider. These opportunities span from innovative product development to strategic market expansions and partnerships.

Here’s a detailed look at the key drivers, projections, and strategies shaping ChromaDex's future:

• Product Innovations: ChromaDex's commitment to research and development is a significant growth driver. The company's focus on nicotinamide riboside (NR) and its various applications in dietary supplements and other health-related products keeps them at the forefront of the market. Continuous innovation in this area can lead to new product lines and increased market penetration.
• Market Expansions: Exploring new geographic markets represents another avenue for growth. As awareness of NR and its benefits spreads globally, ChromaDex can leverage this interest by expanding its distribution networks and forming partnerships in new regions.
• Strategic Initiatives and Partnerships: Collaborations with other companies, research institutions, and healthcare providers can accelerate growth. These partnerships can facilitate new product development, clinical trials, and market access.

While specific future revenue growth projections and earnings estimates are subject to market conditions and company performance, several factors suggest a positive outlook for ChromaDex:

• Increased consumer awareness of the benefits of NR and other related products.
• Growing demand for dietary supplements and nutraceuticals.
• Successful expansion into new markets and distribution channels.

ChromaDex's competitive advantages play a crucial role in positioning the company for sustained growth:

• Proprietary Technology: ChromaDex holds patents and intellectual property related to NR, providing a competitive edge in the market.
• Scientific Validation: Backing its products with scientific research and clinical trials enhances credibility and consumer trust.
• Established Brand: ChromaDex has built a recognizable brand in the nutraceuticals space, which can drive customer loyalty and attract new customers.

For additional insights into ChromaDex Corporation's financial health, you can explore this comprehensive analysis: Breaking Down ChromaDex Corporation (CDXC) Financial Health: Key Insights for Investors