KORU Medical Systems, Inc. (NASDAQ: KRMD)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0000704440
Market Cap 228.30 Mn
P/B 13.87
P/E -61.50
P/S 5.84
ROIC (Qtr) -20.00
Div Yield % 0.00
Rev 1y % (Qtr) 27.17
Total Debt (Qtr) 3.67 Mn
Debt/Equity (Qtr) 0.22

About

KORU Medical Systems, Inc. (KRMD) is a prominent player in the healthcare sector, specializing in the provision of innovative and patient-centric large volume subcutaneous infusion solutions. The company's primary business activities revolve around mechanical infusion products, with a particular focus on the FREEDOM Infusion Systems. These systems are designed to deliver life-saving therapies to patients with chronic illnesses, such as Primary Immunodeficiency Diseases (PIDD) and Chronic Inflammatory Demyelinating Polyneuropathy (CIDP). The FREEDOM...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 8.46M provide 9.74x coverage of short-term debt 868628, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 26.42M provides 7.19x coverage of total debt 3.67M, indicating robust asset backing and low credit risk.
  • Tangible assets of 26.42M provide robust 5.19x coverage of other current liabilities 5.09M, indicating strong asset backing.
  • Cash reserves of 8.46M provide robust 1.08x coverage of current liabilities 7.83M, indicating strong short-term solvency.
  • Strong cash position of 8.46M provides 1.66x coverage of other current liabilities 5.09M, indicating excellent liquidity.

Bear case

  • Operating cash flow of 307264 barely covers its investment activities of (477397), with a coverage ratio of -0.64, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (477397) provide weak support for R&D spending of 4.36M, which is -0.11x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 307264 shows concerning coverage of stock compensation expenses of 2.44M, with a 0.13 ratio indicating potential earnings quality issues.
  • Free cash flow of (165404) provides weak coverage of capital expenditures of 472668, with a -0.35 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (3.69M) show weak coverage of depreciation charges of 842780, with a -4.38 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 174.27 Bn 61.02 17.31 0.00 Bn
2 BDX Becton Dickinson & Co 59.72 Bn 37.77 3.14 19.18 Bn
3 RMD Resmed Inc 39.76 Bn 26.76 7.37 0.85 Bn
4 ALC Alcon Inc 38.93 Bn 37.18 3.82 5.24 Bn
5 WST West Pharmaceutical Services Inc 17.69 Bn 133.13 12.54 0.30 Bn
6 HOLX Hologic Inc 16.81 Bn 30.91 4.07 2.52 Bn
7 COO Cooper Companies, Inc. 16.37 Bn 43.67 4.00 2.51 Bn
8 ALGN Align Technology Inc 13.73 Bn 36.29 3.45 0.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 8.25 2.75
EV to Cash from Ops. EV/CFO 728.08 39.87
EV to Debt EV to Debt 60.90 27.09
EV to EBIT EV/EBIT -60.59 32.86
EV to EBITDA EV/EBITDA -70.53 19.31
EV to Free Cash Flow [EV/FCF] EV/FCF -1,352.53 0.88
EV to Market Cap EV to Market Cap 0.98 -4.26
EV to Revenue EV/Rev 5.73 252.61
Price to Book Value [P/B] P/B 13.87 6.13
Price to Earnings [P/E] P/E -61.50 184.03
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -1.09
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.36
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.74
Interest Coverage Int. cover (Qtr) 0.00 -117.83
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 69.25 -53.47
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -3.89 414.02
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.48
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 68.99 -57.42
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 48.41 -106.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 43.43 -37.00
EBT Growth (1y) % EBT 1y % (Qtr) 43.43 -42.63
EPS Growth (1y) % EPS 1y % (Qtr) 68.00 -15.05
FCF Growth (1y) % FCF 1y % (Qtr) 90.27 56.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 21.14 67.95
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.44 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.08 2.51
Current Ratio Curr Ratio (Qtr) 2.48 7.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.22 0.55
Interest Cover Ratio Int Coverage (Qtr) 0.00 -117.83
Times Interest Earned Times Interest Earned (Qtr) 0.00 -117.83
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -7.30 -2,368.59
EBIT Margin % EBIT Margin % (Qtr) -9.45 -2,472.59
EBT Margin % EBT Margin % (Qtr) -9.45 -2,442.52
Gross Margin % Gross Margin % (Qtr) 62.30 30.06
Net Profit Margin % Net Margin % (Qtr) -9.50 -2,438.49