Solana Co (NASDAQ: HSDT)

Sector: Healthcare Industry: Medical Devices CIK: 0001610853
Market Cap 593,942.62
P/B 0.00
P/E 0.00
P/S 0.63
ROIC (Qtr) 62.76
Div Yield % 0.00
Rev 1y % (Qtr) 1,266.67
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Helius Medical Technologies, Inc. (HSDT) is a company that operates in the neurotechnology industry, focused on neurological wellness. The company's primary product is the Portable Neuromodulation Stimulator (PoNS), a non-implantable medical device that delivers mild electrical stimulation to the surface of the tongue to provide treatment for gait deficit and chronic balance deficit. Helius Medical Technologies operates in the neurotechnology industry, focusing on neurological wellness. The company's main business activities include the development...

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Investment thesis

Bull case

  • Robust tangible asset base of 475.92M provides 3.88x coverage of working capital 122.52M, indicating strong operational backing.
  • Tangible assets of 475.92M provide robust 727.71x coverage of other current liabilities 654000, indicating strong asset backing.
  • Retained earnings of (538.14M) represent substantial 3.53x of equity (152.39M), indicating strong internal capital generation.
  • Long-term investments of 350.18M provide solid 2.86x backing of working capital 122.52M, showing strategic capital allocation.
  • Strong cash position of 124.05M provides 189.68x coverage of other current liabilities 654000, indicating excellent liquidity.

Bear case

  • Operating cash flow of (12.71M) barely covers its investment activities of (267.38M), with a coverage ratio of 0.05, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (267.38M) provide weak support for R&D spending of 3.55M, which is -75.34x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (12.71M) shows concerning coverage of stock compensation expenses of 1.93M, with a -6.58 ratio indicating potential earnings quality issues.
  • Operating earnings of (369.73M) show weak coverage of depreciation charges of 22000, with a -16805.86 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (12.71M) barely covers operating expenses of 30.58M with a -0.42 ratio, suggesting thin operational efficiency margins and limited flexibility.

Geographical Breakdown of Revenue (2022)

Peer comparison

Companies in the Medical Devices
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ABT Abbott Laboratories 173.80 Bn 32.73 5.47 12.94 Bn
2 SYK Stryker Corp 141.15 Bn 43.48 5.62 15.86 Bn
3 MDT Medtronic plc 123.47 Bn 25.92 3.55 29.10 Bn
4 BSX Boston Scientific Corp 112.80 Bn 38.92 5.62 11.44 Bn
5 EW Edwards Lifesciences Corp 45.66 Bn 33.38 7.76 0.70 Bn
6 DXCM Dexcom Inc 27.52 Bn 32.91 5.90 1.34 Bn
7 STE STERIS plc 24.13 Bn 34.08 4.14 2.05 Bn
8 PODD Insulet Corp 17.33 Bn 70.38 6.87 1.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.01 2.13
EV to Cash from Ops. EV/CFO 0.43 2.75
EV to Debt EV to Debt 0.00 17.25
EV to EBIT EV/EBIT 0.01 2.89
EV to EBITDA EV/EBITDA 0.12 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF 0.43 29.36
EV to Market Cap EV to Market Cap -9.23 25.09
EV to Revenue EV/Rev -5.83 32.80
Price to Book Value [P/B] P/B 0.00 4.73
Price to Earnings [P/E] P/E 0.00 -2.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 40.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.59
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.37
Interest Coverage Int. cover (Qtr) -579.51 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 3,477.02 8,476.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -4,080.09 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -254.04 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) -4,080.09 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) -4,080.69 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) 70.43 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) -18.78 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3,018.75 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 39.52 1.80
Current Ratio Curr Ratio (Qtr) 40.03 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 1.20
Interest Cover Ratio Int Coverage (Qtr) -579.51 196.93
Times Interest Earned Times Interest Earned (Qtr) -579.51 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -39,288.70 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) -39,291.07 -2,478.60
EBT Margin % EBT Margin % (Qtr) -39,358.87 -2,690.42
Gross Margin % Gross Margin % (Qtr) 49.60 30.80
Net Profit Margin % Net Margin % (Qtr) -39,358.90 -2,821.53