RxSight, Inc. (NASDAQ: RXST)

Sector: Healthcare Industry: Medical Devices CIK: 0001111485
Market Cap 349.59 Mn
P/B 1.27
P/E -9.78
P/S 2.46
ROIC (Qtr) -15.77
Div Yield % 0.00
Rev 1y % (Qtr) -14.09
Total Debt (Qtr) 11.57 Mn
Debt/Equity (Qtr) 0.04
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About

Investment thesis

Bull case

  • Healthy cash reserves of 30.38M provide 23.50x coverage of short-term debt 1.29M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 308.53M provides 26.68x coverage of total debt 11.56M, indicating robust asset backing and low credit risk.
  • Short-term investments of 197.88M provide solid 11.23x coverage of other current liabilities 17.62M, indicating strong liquidity.
  • Tangible assets of 308.53M provide robust 17.51x coverage of other current liabilities 17.62M, indicating strong asset backing.
  • Cash reserves of 30.38M provide robust 1.36x coverage of current liabilities 22.29M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (18.66M) barely covers its investment activities of 27.82M, with a coverage ratio of -0.67, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 27.82M provide weak support for R&D spending of 38.85M, which is 0.72x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 197.88M significantly exceed cash reserves of 30.38M, which is 6.51x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (18.66M) shows concerning coverage of stock compensation expenses of 31.08M, with a -0.60 ratio indicating potential earnings quality issues.
  • Operating cash flow of (18.66M) provides minimal -259.10x coverage of tax expenses of 72000, 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 1.04 2.13
EV to Cash from Ops. EV/CFO -17.16 2.75
EV to Debt EV to Debt 27.69 17.25
EV to EBIT EV/EBIT -8.98 2.89
EV to EBITDA EV/EBITDA -7.53 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF -14.43 29.36
EV to Market Cap EV to Market Cap 0.92 25.09
EV to Revenue EV/Rev 2.25 32.80
Price to Book Value [P/B] P/B 1.27 4.73
Price to Earnings [P/E] P/E -9.78 -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) -1,781.90 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 42.76 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 74.29 8,476.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -16.42 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -21.92 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) -16.26 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) -16.25 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) -7.32 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) 18.31 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 21.32 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.36 1.80
Current Ratio Curr Ratio (Qtr) 12.74 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 1.20
Interest Cover Ratio Int Coverage (Qtr) -1,781.90 196.93
Times Interest Earned Times Interest Earned (Qtr) -1,781.90 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -23.00 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) -25.08 -2,478.60
EBT Margin % EBT Margin % (Qtr) -25.10 -2,690.42
Gross Margin % Gross Margin % (Qtr) 75.00 30.80
Net Profit Margin % Net Margin % (Qtr) -25.10 -2,821.53