Profound Medical Corp. (NASDAQ: PROF)

Sector: Healthcare Industry: Medical Devices CIK: 0001628808
Market Cap 219.78 Mn
P/B 9.44
P/E -6.88
P/S 21.94
ROIC (Qtr) -147.01
Div Yield % 0.00
Rev 1y % (Qtr) 84.05
Total Debt (Qtr) 3.45 Mn
Debt/Equity (Qtr) 0.15
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About

Investment thesis

Bull case

  • Healthy cash reserves of 17.99M provide 5.22x coverage of short-term debt 3.45M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (27.02M) provides exceptional 129.01x coverage of interest expenses (209420.29), showing strong debt service capability.
  • Tangible assets of 30.57M provide exceptional 72.48x coverage of deferred revenue 421739.13, showing strong service capability backing.
  • Free cash flow of (27.02M) provides exceptional 129.01x coverage of interest expense (209420.29), showing strong debt service ability.
  • Operating cash flow of (27.02M) fully covers other non-current liabilities (259420.29) by 104.14x, showing strong long-term stability.

Bear case

  • Operating cash flow of (27.02M) provides insufficient coverage of deferred revenue obligations of 421739.13, which is -64.06x, raising concerns about future service delivery capabilities.
  • Investment activities of 0 provide weak support for R&D spending of 15.22M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (27.02M) shows concerning coverage of stock compensation expenses of 3.30M, with a -8.19 ratio indicating potential earnings quality issues.
  • Operating earnings of (32.17M) show weak coverage of depreciation charges of 381884.06, with a -84.23 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of 25.63M relative to working capital of 22.89M, which is 1.12x suggests concerning dependence on external funding for operational 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 5.33 2.13
EV to Cash from Ops. EV/CFO -6.04 2.75
EV to Debt EV to Debt 47.36 17.25
EV to EBIT EV/EBIT -5.08 2.89
EV to EBITDA EV/EBITDA -5.35 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF -6.04 29.36
EV to Market Cap EV to Market Cap 0.74 25.09
EV to Revenue EV/Rev 16.29 32.80
Price to Book Value [P/B] P/B 9.44 4.73
Price to Earnings [P/E] P/E -6.88 -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) 153.60 196.93
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) -9.80 8,476.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -32.98 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -26.72 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) -33.05 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) -38.96 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) 1.45 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) -47.54 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 93.17 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.24 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 2.50 1.80
Current Ratio Curr Ratio (Qtr) 4.18 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 0.15 1.20
Interest Cover Ratio Int Coverage (Qtr) 153.60 196.93
Times Interest Earned Times Interest Earned (Qtr) 153.60 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -317.20 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) -443.06 -2,478.60
EBT Margin % EBT Margin % (Qtr) -318.96 -2,690.42
Gross Margin % Gross Margin % (Qtr) 71.80 30.80
Net Profit Margin % Net Margin % (Qtr) -318.90 -2,821.53