Spectral AI, Inc. (NASDAQ: MDAI)

Sector: Healthcare Industry: Medical Devices CIK: 0001833498
Market Cap 34.55 Mn
P/B -4.21
P/E -2.11
P/S 1.49
ROIC (Qtr) -763.17
Div Yield % 0.00
Rev 1y % (Qtr) -53.60
Total Debt (Qtr) 9.67 Mn
Debt/Equity (Qtr) -1.18
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About

Spectral AI, Inc., also known as MDAI, operates in the predictive medical diagnostics industry, specifically focusing on wound care. The company's primary product, the DeepView System, leverages proprietary AI algorithms and multispectral imaging (MSI) technology to distinguish between fully damaged, partially damaged, and healthy human tissue, providing a binary prediction on the wound's capacity to heal or not-heal by a specified time point in the future. Spectral AI's main business activities revolve around the development and commercialization...

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Investment thesis

Bull case

  • Healthy cash reserves of 10.49M provide 5.45x coverage of short-term debt 1.93M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 15.30M provide exceptional 64.02x coverage of deferred revenue 239000, showing strong service capability backing.
  • Operating cash flow of (6.90M) fully covers other non-current liabilities (239000) by 28.87x, showing strong long-term stability.
  • Retained earnings of (56.85M) represent substantial 6.93x of equity (8.20M), indicating strong internal capital generation.
  • Cash reserves of 10.49M exceed inventory value of 454000 by 23.12x, indicating strong liquidity and inventory management.

Bear case

  • Operating cash flow of (6.90M) provides insufficient coverage of deferred revenue obligations of 239000, which is -28.87x, raising concerns about future service delivery capabilities.
  • High receivables of 990000 relative to inventory of 454000 (2.18 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of (6.90M) shows concerning coverage of stock compensation expenses of 1.05M, with a -6.60 ratio indicating potential earnings quality issues.
  • Operating cash flow of (6.90M) provides minimal -35.02x coverage of tax expenses of 197000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (15.57M) show weak coverage of depreciation charges of 596000, with a -26.13 ratio indicating high capital intensity and potential reinvestment needs.

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 2.20 2.13
EV to Cash from Ops. EV/CFO -4.88 2.75
EV to Debt EV to Debt 3.48 17.25
EV to EBIT EV/EBIT -2.16 2.89
EV to EBITDA EV/EBITDA -4.90 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF -4.88 29.36
EV to Market Cap EV to Market Cap 0.97 25.09
EV to Revenue EV/Rev 1.45 32.80
Price to Book Value [P/B] P/B -4.21 4.73
Price to Earnings [P/E] P/E -2.11 -2.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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) -26.08 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 183.50 8,476.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -43.41 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 11.42 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) -43.06 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) -46.82 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) -16.13 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) 42.71 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -15.65 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.51 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.67 1.80
Current Ratio Curr Ratio (Qtr) 0.85 4.18
Debt to Equity Ratio Debt/Equity (Qtr) -1.18 1.20
Interest Cover Ratio Int Coverage (Qtr) -26.08 196.93
Times Interest Earned Times Interest Earned (Qtr) -26.08 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -64.60 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) -67.21 -2,478.60
EBT Margin % EBT Margin % (Qtr) -69.79 -2,690.42
Gross Margin % Gross Margin % (Qtr) 45.00 30.80
Net Profit Margin % Net Margin % (Qtr) -70.60 -2,821.53