Modular Medical, Inc. (NASDAQ: MODD)

Sector: Healthcare Industry: Medical Devices CIK: 0001074871
Market Cap 25.14 Mn
P/B 4.27
P/E -0.94
P/S 0.00
ROIC (Qtr) -340.69
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 504,000.00
Debt/Equity (Qtr) 0.09
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About

Modular Medical, Inc., with its ticker symbol MODD, is a company operating in the medical device industry, specializing in the design, development, and commercialization of innovative insulin pumps. The company's main business activities revolve around modernizing technology to increase pump adoption in the diabetes marketplace. Modular Medical operates in the diabetes market, providing insulin pumps to individuals with type 1 and type 2 diabetes who require insulin therapy. Modular Medical generates revenue primarily from its insulin pump sales,...

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Investment thesis

Bull case

  • Healthy cash reserves of 2.94M provide 6.33x coverage of short-term debt 464000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 10.26M provides 20.36x coverage of total debt 504000, indicating robust asset backing and low credit risk.
  • Tangible assets of 10.26M provide robust 14.51x coverage of other current liabilities 707000, indicating strong asset backing.
  • Robust tangible asset base of 10.26M provides 7.97x coverage of working capital 1.29M, indicating strong operational backing.
  • Strong cash position of 2.94M provides 4.15x coverage of other current liabilities 707000, indicating excellent liquidity.

Bear case

  • Investment activities of (3.88M) provide weak support for R&D spending of 20.07M, which is -0.19x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (22.25M) shows concerning coverage of stock compensation expenses of 2.44M, with a -9.10 ratio indicating potential earnings quality issues.
  • Free cash flow of (26.12M) provides weak coverage of capital expenditures of 3.88M, with a -6.74 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (26.78M) show weak coverage of depreciation charges of 1.93M, with a -13.90 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (22.25M) provides minimal -11124x coverage of tax expenses of 2000, 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 1.99 2.13
EV to Cash from Ops. EV/CFO -0.92 2.75
EV to Debt EV to Debt 40.54 17.25
EV to EBIT EV/EBIT -0.76 2.89
EV to EBITDA EV/EBITDA -0.82 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF -0.78 29.36
EV to Market Cap EV to Market Cap 0.81 25.09
EV to Revenue EV to Revenue 0.00 32.80
Price to Book Value [P/B] P/B 4.27 4.73
Price to Earnings [P/E] P/E -0.94 -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) 0.00 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -91.07 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -57.96 8,476.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -47.32 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -45.21 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) -47.32 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) -47.32 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) 7.55 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) -54.20 10.43
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 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) 1.35 1.80
Current Ratio Curr Ratio (Qtr) 1.59 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 0.09 1.20
Interest Cover Ratio Int Coverage (Qtr) 0.00 196.93
Times Interest Earned Times Interest Earned (Qtr) 0.00 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -2,396.63
EBIT Margin % EBIT Margin % 0.00 -2,478.60
EBT Margin % EBT Margin % 0.00 -2,690.42
Gross Margin % Gross Margin % 0.00 30.80
Net Profit Margin % Net Profit Margin % 0.00 -2,821.53