SANUWAVE Health, Inc. (NASDAQ: SNWV)

Sector: Healthcare Industry: Medical Devices CIK: 0001417663
Market Cap 374.43 Mn
P/B -127.75
P/E -53.16
P/S 9.07
ROIC (Qtr) 39.49
Div Yield % 0.00
Rev 1y % (Qtr) 22.34
Total Debt (Qtr) 24.45 Mn
Debt/Equity (Qtr) -8.34
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About

Investment thesis

Bull case

  • Tangible assets of 25.14M provide exceptional 78.07x coverage of deferred revenue 322000, showing strong service capability backing.
  • Operating cash flow of 1.30M provides strong 4.03x coverage of deferred revenue 322000, indicating service delivery capability.
  • Retained earnings of (245.72M) represent substantial 83.83x of equity (2.93M), indicating strong internal capital generation.
  • Robust tangible asset base of 25.14M provides 8.23x coverage of working capital 3.06M, indicating strong operational backing.
  • R&D investment of 901000 represents healthy 2.80x of deferred revenue 322000, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of 1.30M barely covers its investment activities of 2.92M, with a coverage ratio of 0.44, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of (784000) provides weak coverage of capital expenditures of 2.08M, with a -0.38 ratio suggesting additional external financing needs for growth initiatives.
  • The company's operating cash flow of 1.30M shows concerning coverage of stock compensation expenses of 5.03M, with a 0.26 ratio indicating potential earnings quality issues.
  • Free cash flow of (784000) represents just 0.09x of debt issuance (8.53M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating earnings of 1.06M show weak coverage of depreciation charges of 1.31M, with a 0.81 ratio indicating high capital intensity and potential reinvestment needs.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

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 11.06 2.13
EV to Cash from Ops. EV/CFO 303.46 2.75
EV to Debt EV to Debt 16.11 17.25
EV to EBIT EV/EBIT 370.20 2.89
EV to EBITDA EV/EBITDA 48.25 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF -502.41 29.36
EV to Market Cap EV to Market Cap 1.05 25.09
EV to Revenue EV/Rev 9.54 32.80
Price to Book Value [P/B] P/B -127.75 4.73
Price to Earnings [P/E] P/E -53.16 -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) 0.13 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -2,603.90 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 194.63 8,476.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -92.31 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 62.61 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) -92.26 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) -1,722.60 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) -107.39 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) -322.73 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 51.37 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.16 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.49 1.80
Current Ratio Curr Ratio (Qtr) 1.16 4.18
Debt to Equity Ratio Debt/Equity (Qtr) -8.34 1.20
Interest Cover Ratio Int Coverage (Qtr) 0.13 196.93
Times Interest Earned Times Interest Earned (Qtr) 0.13 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 5.80 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) 2.58 -2,478.60
EBT Margin % EBT Margin % (Qtr) -17.00 -2,690.42
Gross Margin % Gross Margin % (Qtr) 78.30 30.80
Net Profit Margin % Net Margin % (Qtr) -17.10 -2,821.53