Sight Sciences, Inc. (NASDAQ: SGHT)

Sector: Healthcare Industry: Medical Devices CIK: 0001531177
Market Cap 271.09 Mn
P/B 4.22
P/E -5.88
P/S 3.56
ROIC (Qtr) -41.95
Div Yield % 0.00
Rev 1y % (Qtr) -1.25
Total Debt (Qtr) 40.07 Mn
Debt/Equity (Qtr) 0.62
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About

Sight Sciences, Inc. (SGHT) is a leading developer of transformative, interventional technologies for the treatment of eye diseases, operating in the ophthalmic industry. This industry is characterized by significant unmet needs, particularly in the areas of glaucoma and dry eye disease. Sight Sciences focuses on developing products that address these two prevalent conditions, with a mission to empower people to keep seeing by elevating the standards of care. The company's primary products include OMNI and SION, used to treat glaucoma, and TearCare,...

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Investment thesis

Bull case

  • Strong tangible asset base of 116.26M provides 2.90x coverage of total debt 40.07M, indicating robust asset backing and low credit risk.
  • Tangible assets of 116.26M provide robust 11.52x coverage of other current liabilities 10.09M, indicating strong asset backing.
  • Cash reserves of 92.37M provide solid 1399.59x coverage of other non-current liabilities 66000, indicating strong liquidity.
  • Cash reserves of 92.37M provide robust 7.81x coverage of current liabilities 11.83M, indicating strong short-term solvency.
  • Strong cash position of 92.37M provides 9.16x coverage of other current liabilities 10.09M, indicating excellent liquidity.

Bear case

  • Investment activities of (517000) provide weak support for R&D spending of 16.46M, which is -0.03x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (31.33M) shows concerning coverage of stock compensation expenses of 14.45M, with a -2.17 ratio indicating potential earnings quality issues.
  • Free cash flow of (31.84M) provides weak coverage of capital expenditures of 517000, with a -61.59 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (31.33M) provides minimal -783.15x coverage of tax expenses of 40000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (41.06M) show weak coverage of depreciation charges of 1.09M, with a -37.74 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 1.80 2.13
EV to Cash from Ops. EV/CFO -6.68 2.75
EV to Debt EV to Debt 5.23 17.25
EV to EBIT EV/EBIT -5.10 2.89
EV to EBITDA EV/EBITDA -4.73 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF -6.58 29.36
EV to Market Cap EV to Market Cap 0.77 25.09
EV to Revenue EV/Rev 2.75 32.80
Price to Book Value [P/B] P/B 4.22 4.73
Price to Earnings [P/E] P/E -5.88 -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) -8.19 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -0.98 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -22.09 8,476.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 9.65 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 8.29 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) 9.35 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) 8.12 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) 10.78 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) -23.00 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -3.34 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.65 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 7.81 1.80
Current Ratio Curr Ratio (Qtr) 9.60 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 0.62 1.20
Interest Cover Ratio Int Coverage (Qtr) -8.19 196.93
Times Interest Earned Times Interest Earned (Qtr) -8.19 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -52.60 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) -53.98 -2,478.60
EBT Margin % EBT Margin % (Qtr) -60.58 -2,690.42
Gross Margin % Gross Margin % (Qtr) 86.00 30.80
Net Profit Margin % Net Margin % (Qtr) -60.60 -2,821.53