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Allurion Technologies (ALUR)
NYSE:ALUR
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Allurion Technologies
(NYSE:ALUR)
39Underperform
Positive Factors
Market Expansion
ALUR's business model is robust, with strong double-digit annual procedure growth and expansion into over 50 countries, representing 40% of the global population with a BMI of 25 or more.
Regulatory Clearance
The Allurion Balloon has been cleared to resume sales in France, removing a major overhang on the international business.
Negative Factors
Price Target Adjustment
The price target for Allurion Technologies, Inc. has been significantly lowered.
Allurion Technologies (ALUR) vs. S&P 500 (SPY)
Market Cap
$14.01M
Dividend YieldN/A
Average Volume (3M)347.59K
Price to Earnings (P/E)―
Beta (1Y)3.49
Revenue Growth11.53%
EPS Growth87.95%
CountryUS
Employees252
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-11.89
Shares Outstanding5,961,714
10 Day Avg. Volume112,291
30 Day Avg. Volume347,591
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.24
Price to Cash Flow (P/CF)-0.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.00Price Target Upside529.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Allurion Technologies Business Overview & Revenue Model
Company DescriptionCompute Health Acquisition Corp is a blank check company.
How the Company Makes MoneyAllurion Technologies makes money primarily through the sale of its Allurion Balloon product to healthcare providers, weight loss clinics, and hospitals. The company generates revenue by partnering with medical professionals who offer the Allurion Balloon as part of their weight management programs. Additionally, Allurion may have partnerships with healthcare institutions and distributors to expand its market reach. The company also offers training and support services to healthcare providers, which could contribute to its revenue streams. Key factors contributing to Allurion's earnings include the growing demand for non-surgical weight loss solutions and its ability to establish strong relationships with healthcare providers.
Allurion Technologies Financial Statement Overview
Summary
Allurion Technologies is currently struggling with declining revenues, high operating losses, and poor cash flow management. The negative equity position highlights potential liquidity and solvency risks. The company needs to focus on improving operational efficiency and reducing costs to achieve financial stability.Income Statement
Allurion Technologies shows declining revenue and high net losses over the reported periods. The gross profit margin remains relatively high at 72.3% TTM, but the net profit margin is significantly negative due to high operating losses. This indicates potential issues with cost management and scalability.40
Negative
Balance Sheet
The company has negative stockholders' equity, reflecting high leverage and financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, indicating a high-risk profile. Total liabilities exceed total assets, suggesting potential solvency issues.35
Negative
Cash Flow
Allurion Technologies has negative operating and free cash flows, with no positive net income in recent years. This presents a significant cash flow risk, as the company is not generating enough cash to cover its operational expenses and investments.30
Negative
| Breakdown | ||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 34.75M | 53.47M | 64.21M | 38.24M | 0.00 | Gross Profit |
| 25.13M | 41.50M | 50.73M | 29.19M | 0.00 | EBIT |
| -58.62M | -79.08M | -32.01M | -12.50M | -5.17K | EBITDA |
| -21.52M | -69.03M | -32.28M | -12.35M | -5.17K | Net Income Common Stockholders |
| -24.76M | -82.30M | -37.74M | -12.39M | -5.17K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 38.04M | 38.04M | 7.68M | 25.84M | 47.09K | Total Assets |
| 71.71M | 71.71M | 51.37M | 39.35M | 329.96K | Total Debt |
| 41.86M | 41.86M | 59.53M | 26.14M | 170.00K | Net Debt |
| 3.82M | 3.82M | 51.85M | 300.00K | 122.91K | Total Liabilities |
| 142.20M | 142.20M | 122.81M | 73.64M | 310.13K | Stockholders Equity |
| -70.49M | -70.49M | -71.44M | -34.28M | 19.83K |
| Cash Flow | Free Cash Flow | |||
| -50.91M | -65.59M | -48.53M | -15.24M | ― | Operating Cash Flow |
| -49.90M | -63.98M | -46.98M | -14.33M | ― | Investing Cash Flow |
| -1.01M | -1.61M | -1.55M | -912.00K | 0.00 | Financing Cash Flow |
| -147.00K | 95.99M | 30.54M | 28.95M | 47.13K |
Allurion Technologies Technical Analysis
Negative
2.54
Price Trends
5.07
Negative
9.01
Negative
16.39
Negative
Market Momentum
-0.87
Positive
35.06
Neutral
16.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALUR, the sentiment is Negative. The current price of 2.54 is below the 20-day moving average (MA) of 3.44, below the 50-day MA of 5.07, and below the 200-day MA of 16.39, indicating a bearish trend. The MACD of -0.87 indicates Positive momentum. The RSI at 35.06 is Neutral, neither overbought nor oversold. The STOCH value of 16.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALUR.
Allurion Technologies Risk Analysis
Allurion Technologies disclosed 83 risk factors in its most recent earnings report. Allurion Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allurion Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $5.13B | 93.76 | 8.48% | ― | 28.49% | ― | |
65 Neutral | $328.31M | 19.09 | 8.27% | ― | 6.76% | -41.38% | |
61 Neutral | $3.26B | ― | -75.27% | ― | 20.13% | 10.05% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% | |
46 Neutral | $617.02M | ― | -37.28% | ― | 24.51% | 47.32% | |
43 Neutral | $2.34B | ― | -46.67% | ― | 18.82% | 19.76% | |
39 Underperform | $14.01M | ― | 38.80% | ― | 11.53% | 87.95% |
* Healthcare Sector Average
Performance Comparison
ALUR
Allurion Technologies
2.54
-67.71
-96.38%
NVCR
NovoCure
20.62
5.80
39.14%
TCMD
Tactile Systems Technology
13.26
-2.84
-17.64%
IRTC
Irhythm Technologies
101.69
-3.07
-2.93%
INSP
Inspire Medical Systems
162.53
-27.10
-14.29%
BFLY
Butterfly Network
2.69
1.60
146.79%
Allurion Technologies Earnings Call Summary
Earnings Call Date: Nov 13, 2024 | % Change Since: -85.70% | Next Earnings Date: Mar 26, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging quarter with significant revenue decline and operational difficulties, particularly in France. However, there are promising aspects such as substantial growth in AI product revenue, a new commercial strategy, and positive data from recent studies. The company is focused on restructuring and strategic initiatives to return to growth.Highlights
AI Product Revenue Growth
AI product revenues have grown more than 80% year-over-year, with expectations to double by year end, driven by expansion in the U.S. and Europe.
Middle East Procedure Volume Growth
Procedure volumes in the Middle East grew by 20% compared to last year, indicating recovery and potential future growth.
New Commercial Strategy
Introduction of a new commercial plan focusing on deeper market penetration, scaling AI products, gaining FDA approval for the Allurion Balloon, achieving profitability, and resuming commercialization in France.
Successful Publication of Studies
Publication of multiple studies showcasing the effectiveness of the Allurion Balloon, including a real-world experience of 19,428 patients showing an average weight loss of 12.2% in 4 months.
Lowlights
Significant Revenue Decline
Revenue for the third quarter of 2024 was $5.4 million, a significant decrease from $18.2 million in the same period in 2023.
Suspension of Sales in France
Temporary suspension of the Allurion Balloon sales in France due to regulatory issues, impacting revenue.
Gross Profit Decline
Gross profit dropped to 58% from 77% in the same period in 2023, affected by revenue reductions and lower production volumes.
Reduction in Global Headcount
The company reduced its global headcount by approximately half to streamline operations and reduce costs.
Company Guidance
During the Allurion Technologies Q3 2024 earnings call, the company provided guidance highlighting several key metrics and strategic directions. Revenue for the third quarter was reported at $5.4 million, a significant decrease from $18.2 million in Q3 2023, largely due to macroeconomic headwinds and a temporary suspension in France. Gross profit margins fell to 58% from 77% year-over-year, impacted by a product recall. Allurion outlined a new strategy for 2025 centered around five pillars, including a refined commercial plan, scaling their AI platform, and gaining FDA approval for the Allurion Balloon. The company anticipates 2024 revenue in the range of $30 million to $35 million, expecting procedure volumes to remain flat compared to 2023. Cost reduction measures are projected to cut operating expenses by approximately 50% in 2025, with an aim to achieve adjusted EBITDA profitability by late 2025. The Virtual Care Suite (VCS) showed promising growth, with AI product revenues up over 80% year-over-year, and the company plans to expand this business further in 2025.Allurion Technologies Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Allurion Technologies Enhances Financial Agreements and Governance
Positive
Jan 8, 2025
Allurion Technologies announced an Omnibus Amendment to its existing financial agreements, which includes maintaining certain cash balances and revenue requirements. It also entails securing marketing authorizations in France and the U.S. for its products. The amendment allows investors to receive common stock or preferred shares, and it grants the right for investor representatives to join the board of directors, indicating a strategic move to strengthen financial and operational stability.
Executive/Board Changes
Allurion Technologies Expands Board with New Appointment
Neutral
Jan 6, 2025
Allurion Technologies, Inc., a company incorporated in Delaware, has expanded its Board of Directors from eight to nine members, appointing R. Jason Richey as a Class II director. Mr. Richey brings a wealth of experience from his previous roles at Cytrellis Biosystems, Inc., Cutera, Inc., and LivaNova, PLC, enhancing the board’s expertise in the medical technology sector. This strategic appointment, influenced by RTW Investments, LP, a stakeholder in Allurion, is expected to bolster the company’s governance and operational oversight.
Executive/Board Changes
Allurion Technologies CFO Resigns, CEO Steps In
Neutral
Nov 13, 2024
Allurion Technologies’ CFO, Christopher Geberth, is resigning to explore new opportunities, effective November 13, 2024, but will continue as a consultant during the transition. CEO Shantanu Gaur will temporarily take over financial responsibilities until a new CFO is appointed, ensuring stability for the company.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.