Sanara MedTech Inc. (NASDAQ: SMTI)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0000714256
Market Cap 210.35 Mn
P/B 34.21
P/E -5.61
P/S 2.06
ROIC (Qtr) -2.31
Div Yield % 0.00
Rev 1y % (Qtr) 21.51
Total Debt (Qtr) 47.39 Mn
Debt/Equity (Qtr) 7.71

About

Sanara MedTech Inc., often recognized by its SMTI ticker symbol, operates within the medical technology industry. The company's primary focus lies in the development and commercialization of transformative technologies that can enhance clinical outcomes and reduce healthcare expenditures in the surgical, chronic wound, and skincare markets. Sanara MedTech is actively engaged in various business activities, all centered around improving wound care. The company operates in the surgical tissue repair and advanced wound care markets, primarily within...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 14.94M provide 44.07x coverage of short-term debt 338990, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust tangible asset base of 46.39M provides 3.34x coverage of working capital 13.87M, indicating strong operational backing.
  • Long-term investments of 12.59M provide solid 0.91x backing of working capital 13.87M, showing strategic capital allocation.
  • Operating cash flow of 3.77M fully covers other non-current liabilities 536883 by 7.03x, showing strong long-term stability.
  • Cash reserves of 14.94M provide solid 27.83x coverage of other non-current liabilities 536883, indicating strong liquidity.

Bear case

  • Operating cash flow of 3.77M barely covers its investment activities of (12.66M), with a coverage ratio of -0.30, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (12.66M) provide weak support for R&D spending of 5.81M, which is -2.18x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 14.94M provide limited coverage of acquisition spending of (2.12M), which is -7.04x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 12.09M relative to inventory of 3.39M (3.57 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 3.77M shows concerning coverage of stock compensation expenses of 5.17M, with a 0.73 ratio indicating potential earnings quality issues.

Product and Service Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 209.14 Bn 76.14 21.76 0.00 Bn
2 BDX Becton Dickinson & Co 58.36 Bn 34.78 2.67 19.18 Bn
3 ALC Alcon Inc 39.57 Bn 37.80 3.89 5.24 Bn
4 RMD Resmed Inc 37.01 Bn 25.74 7.04 0.85 Bn
5 WST West Pharmaceutical Services Inc 19.95 Bn 40.58 6.61 0.30 Bn
6 HOLX Hologic Inc 16.94 Bn 29.95 4.13 2.52 Bn
7 COO Cooper Companies, Inc. 16.64 Bn 44.39 4.07 2.51 Bn
8 SOLV Solventum Corp 15.00 Bn 9.84 1.79 5.14 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.36 3.14
EV to Cash from Ops. EV/CFO 63.29 37.60
EV to Debt EV to Debt 5.04 23.10
EV to EBIT EV/EBIT -7.64 50.25
EV to EBITDA EV/EBITDA 59.38 19.58
EV to Free Cash Flow [EV/FCF] EV/FCF -305.40 -19.40
EV to Market Cap EV to Market Cap 1.14 -1.68
EV to Revenue EV/Rev 2.34 171.31
Price to Book Value [P/B] P/B 34.21 6.03
Price to Earnings [P/E] P/E -5.61 204.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -1.11
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.75
Interest Coverage Int. cover (Qtr) -5.03 -119.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -2,323.84 -55.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -8.22 200.65
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.49
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -401.50 -56.39
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 471.18 -106.80
EBIT Growth (1y) % EBIT 1y % (Qtr) -401.50 -36.51
EBT Growth (1y) % EBT 1y % (Qtr) -348.29 -47.44
EPS Growth (1y) % EPS 1y % (Qtr) -338.38 -15.70
FCF Growth (1y) % FCF 1y % (Qtr) 60.75 59.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 33.58 68.22
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.43 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.86 2.49
Current Ratio Curr Ratio (Qtr) 1.80 7.77
Debt to Equity Ratio Debt/Equity (Qtr) 7.71 0.55
Interest Cover Ratio Int Coverage (Qtr) -5.03 -119.10
Times Interest Earned Times Interest Earned (Qtr) -5.03 -119.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -25.20 -2,368.64
EBIT Margin % EBIT Margin % (Qtr) -30.69 -2,472.65
EBT Margin % EBT Margin % (Qtr) -36.79 -2,442.59
Gross Margin % Gross Margin % (Qtr) 92.30 30.07
Net Profit Margin % Net Margin % (Qtr) -36.80 -2,438.52