Pulmonx Corp (NASDAQ: LUNG)

Sector: Healthcare Industry: Medical Devices CIK: 0001127537
Market Cap 59.97 Mn
P/B 1.00
P/E -1.06
P/S 0.65
ROIC (Qtr) -47.59
Div Yield % 0.00
Rev 1y % (Qtr) 5.47
Total Debt (Qtr) 56.56 Mn
Debt/Equity (Qtr) 0.94
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About

Investment thesis

Bull case

  • Healthy cash reserves of 76.81M provide 61.89x coverage of short-term debt 1.24M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 135.95M provide exceptional 1477.70x coverage of deferred revenue 92000, showing strong service capability backing.
  • Operating cash flow of (32.02M) fully covers other non-current liabilities (45000) by 711.60x, showing strong long-term stability.
  • Tangible assets of 135.95M provide robust 8.93x coverage of other current liabilities 15.22M, indicating strong asset backing.
  • R&D investment of 18.91M represents healthy 205.53x of deferred revenue 92000, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of (32.02M) barely covers its investment activities of 44.56M, with a coverage ratio of -0.72, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (32.02M) provides insufficient coverage of deferred revenue obligations of 92000, which is -348.07x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (32.02M) shows concerning coverage of stock compensation expenses of 22.52M, with a -1.42 ratio indicating potential earnings quality issues.
  • Free cash flow of (32.57M) provides weak coverage of capital expenditures of 550000, with a -59.22 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (32.02M) provides minimal -66.99x coverage of tax expenses of 478000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 0.30 2.13
EV to Cash from Ops. EV/CFO -1.28 2.75
EV to Debt EV to Debt 0.73 17.25
EV to EBIT EV/EBIT -0.77 2.89
EV to EBITDA EV/EBITDA -0.75 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF -1.26 29.36
EV to Market Cap EV to Market Cap 0.68 25.09
EV to Revenue EV/Rev 0.45 32.80
Price to Book Value [P/B] P/B 1.00 4.73
Price to Earnings [P/E] P/E -1.06 -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) -16.44 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 64.19 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 20.83 8,476.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -0.01 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -0.23 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) -0.42 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) 0.22 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) 4.08 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) 6.38 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 14.24 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.66 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 3.36 1.80
Current Ratio Curr Ratio (Qtr) 4.86 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 0.94 1.20
Interest Cover Ratio Int Coverage (Qtr) -16.44 196.93
Times Interest Earned Times Interest Earned (Qtr) -16.44 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -55.10 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) -57.87 -2,478.60
EBT Margin % EBT Margin % (Qtr) -61.39 -2,690.42
Gross Margin % Gross Margin % (Qtr) 73.30 30.80
Net Profit Margin % Net Margin % (Qtr) -61.90 -2,821.53