Compumedics Limited (CMP) AI Stock Analysis

• Market Cap: AU$69.92M
• Dividend Yield: N/A
• Average Volume (3M): 87.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: 2.23%
• EPS Growth: -263.16%
• Country: AU
• Employees: 155
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): N/A
• Shares Outstanding: 199,761,750
• 10 Day Avg. Volume: 153,799
• 30 Day Avg. Volume: 87,448
• PEG Ratio: -0.14
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 99.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: AU$0.35 ▲(2.06% Upside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

The score is held back primarily by weak profitability and cash flow pressure (negative net margin and steeply negative free cash flow growth), despite steady revenue growth and manageable leverage. Technicals are supportive due to a clear uptrend above major moving averages, but the overbought RSI tempers that strength. Valuation remains a drag given the negative P/E.

Positive Factors

Revenue Growth

Sustained revenue growth near 9% indicates expanding clinical adoption and market penetration of diagnostic systems. Over 2-6 months this supports a larger installed base, higher recurring accessory and service sales, and improved operating leverage as fixed R&D and manufacturing costs are spread over more sales.

High Gross Margin

A gross margin above 60% reflects durable product-level pricing power and cost structure in medical device hardware and software. High margins provide room to invest in product development, service infrastructure and clinical support while absorbing competitive pricing pressures without immediate margin erosion.

Manageable Leverage

Moderate debt relative to equity gives financial flexibility to fund incremental capex, inventory for sales growth and targeted M&A without excessive solvency risk. This leverage level supports multi-month strategic initiatives while keeping interest burden and refinancing pressure at sustainable levels.

Negative Factors

Weak Profitability

Negative net margin and near-breakeven EBIT indicate the business struggles to convert gross profit into sustainable operating profitability. Over a multi-month horizon this limits retained earnings, constrains reinvestment capacity, and increases dependence on margin improvement or cost control to reach self-funded growth.

Cash Flow Pressure

Severely negative FCF growth and very low operating cash flow relative to net income signal weak cash generation from operations. This structural cash shortfall can force external financing, delay product investment or maintenance of installed base, and elevate execution risk over the coming months.

Poor Shareholder Returns

Negative ROE shows the company is not generating returns on shareholders' capital, reflecting persistent earnings shortfalls or inefficient capital deployment. Over time this undermines equity value creation and may pressure strategic shifts or capital structure changes to restore returns.

Compumedics Limited Business Overview & Revenue Model

Company Description

Compumedics Limited researches, develops, manufactures, sells, and distributes medical devices in Australia, the Asia Pacific, the Americas, Europe, and the Middle East. It provides sleep diagnostics products, including Grael 4K PSG:EEG amplifiers; Somté PSG; Siesta 802, an ambulatory recording device; Okti; Grael PSG; Grael DC; Somfit/Somfit Pro, a wearable device; TCM5 FLEX Transcutaneous monitor; and Somté, an investigative tool. The company also provides neurology diagnostics, such as ONsight A.V.S. for monitoring patient's home ambulatory studies; Grael 4K PSG:EEG amplifiers; Grael 4K-EEG amplifiers; Grael LT EEG System amplifiers; Neuvo 64-512 Channel LTM EEG monitoring systems; Xegis Forte EMG/EP; and Xegis G:NEO 2 Channel EMG/EP systems. In addition, it offers software products, such as Profusion Sleep software suite; Profusion EEG Software; Profusion neXus 360, a web-based patient data and lab management system that provides integrated hardware and software solutions for sleep and neurology clinics; Multi-Modal Neuroimaging Suite; Profusion neXus Laboratory Management System to optimize administrative and operational workflow needs of diagnostic and research laboratories; Profusion neXus Scheduler for planning for staff and time; and HD Digital Video, a plug-in software module to add synchronized digital video capabilities to sleep and EEG systems, as well as ECG Free, Profusion Plus, Siesta extended battery pack, summit IP, and persyst software products. Further, the company provides magnetoencephalography systems; brain research technologies; pharmaceutical clinical trials and research services; accessories; and a range of consumables and supplies for diagnostic and research solutions. The company was incorporated in 1987 and is headquartered in Abbotsford, Australia. Compumedics Limited operates as a subsidiary of D & DJ Burton Holdings Pty Ltd.

How the Company Makes Money

Compumedics generates revenue through the sale of its proprietary medical devices and software solutions across various sectors, notably sleep medicine and neurology. Key revenue streams include direct sales of diagnostic equipment to hospitals, clinics, and sleep laboratories, as well as recurring revenue from software licensing and maintenance services. The company also benefits from partnerships with healthcare institutions and distributors, which expand its market reach and facilitate access to international markets. Additionally, Compumedics engages in research and development collaborations that can lead to new product innovations and revenue opportunities.

Compumedics Limited Financial Statement Overview

Summary

Revenue growth is positive (8.99%) and gross margin is strong (60.71%), but overall profitability is weak (net margin -2.49%, EBIT margin 1.40%). Balance sheet leverage is manageable (debt-to-equity 0.64) yet shareholder returns are negative (ROE -5.83%). Cash flow is a key concern with sharply negative free cash flow growth (-129.75%) and very low operating cash flow to net income (0.02).

Income Statement

Compumedics Limited shows a mixed performance in its income statement. The company has achieved a positive revenue growth rate of 8.99% in the latest year, indicating an upward trend in sales. However, profitability remains a concern with a negative net profit margin of -2.49% and a low EBIT margin of 1.40%. The gross profit margin is relatively healthy at 60.71%, suggesting efficient production processes. Overall, while revenue is growing, the company struggles with profitability, which impacts its income statement score.

Balance Sheet

The balance sheet of Compumedics Limited reflects moderate financial stability. The debt-to-equity ratio stands at 0.64, indicating a manageable level of leverage. However, the return on equity is negative at -5.83%, highlighting challenges in generating returns for shareholders. The equity ratio is not explicitly provided, but the company's equity position appears stable relative to its assets. The balance sheet score reflects a balance between manageable debt levels and the need for improved profitability.

Cash Flow

Cash flow analysis reveals areas of concern for Compumedics Limited. The free cash flow growth rate is significantly negative at -129.75%, indicating cash flow challenges. The operating cash flow to net income ratio is low at 0.02, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio is relatively better at 0.69, indicating some ability to convert earnings into cash. Overall, the cash flow score reflects the need for improved cash management and generation.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	51.04M	49.72M	42.41M	37.76M	35.74M
Gross Profit	30.99M	26.07M	21.59M	19.32M	19.16M
EBITDA	1.94M	2.79M	-5.05M	3.31M	2.56M
Net Income	-1.27M	-338.00K	-6.12M	1.36M	998.00K
Balance Sheet
Total Assets	54.39M	40.36M	41.18M	41.71M	38.55M
Cash, Cash Equivalents and Short-Term Investments	2.69M	1.89M	3.80M	7.29M	6.77M
Total Debt	13.88M	8.58M	9.47M	6.55M	5.82M
Total Liabilities	32.57M	22.15M	22.89M	18.12M	16.39M
Stockholders Equity	21.82M	18.21M	18.29M	23.59M	22.16M
Cash Flow
Free Cash Flow	467.00K	-986.00K	-4.36M	302.00K	-230.00K
Operating Cash Flow	681.00K	2.00M	49.00K	3.29M	1.32M
Investing Cash Flow	-7.37M	-2.99M	-4.41M	-2.98M	-1.55M
Financing Cash Flow	6.10M	-1.49M	-1.00M	1.61M	-179.00K

Compumedics Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CMP, the sentiment is Neutral. The current price of 0.34 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.36, and above the 200-day MA of 0.32, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 37.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:CMP.

Compumedics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOM	55 Neutral	AU$154.00M	-41.88	-7.26%	―	21.65%	81.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CBL	51 Neutral	AU$23.07M	-2.36	-103.74%	―	14.84%	39.64%
CMP	48 Neutral	AU$69.92M	-50.00	-6.35%	―	2.23%	-263.16%
CYC	46 Neutral	AU$106.14M	-7.37	-31.98%	―	34.20%	-23.90%
IPD	44 Neutral	AU$36.70M	-1.48	-74.00%	―	23.31%	-17.35%
EMV	44 Neutral	AU$162.64M	-15.48	-70.55%	―	―	-257.32%

Compumedics Limited Corporate Events

Compumedics Adds $4.2m China MEG Order, Lifts Contracted Pipeline to $30m

Compumedics has secured a new approximately $4.2 million order from Shandong Normal University in China for its Orion LifeSpan dual-helmet MEG system, including integrated CURRY neuro-imaging software and peripherals, placed via its long-standing Chinese distributor Beijing Fistar. This sixth Orion LifeSpan MEG sale lifts Compumedics’ total contracted MEG order book to about $30 million, reinforces its leadership in the technically demanding global MEG market, and extends revenue visibility well into FY27 as the system is delivered in line with production and site-readiness timelines. The deal underscores China’s role as a key growth market for advanced neuroscience infrastructure, adds to a growing installed base and reference sites, and supports Compumedics’ broader strategy of scaling its high-value MEG business alongside its sleep, neuro and SaaS platforms, with additional MEG opportunities progressing in China, North America and Europe.

The most recent analyst rating on (AU:CMP) stock is a Hold with a A$0.45 price target. To see the full list of analyst forecasts on Compumedics Limited stock, see the AU:CMP Stock Forecast page.

Compumedics Posts Record H1 FY26 Revenue and Orders, Reaffirms Full-Year Guidance

Compumedics reported record first-half FY26 performance, with sales orders rising 6% to $34.9 million and shipped and invoiced revenue jumping 32% to $30.8 million, reflecting stronger demand for its core sleep and neuro diagnostic platforms and improved delivery execution, including ongoing contributions from its MEG brain imaging systems. The company is implementing a $2 million annual cost-out program and expects H1 FY26 EBITDA to exceed $3 million, while reaffirming full-year guidance of $70 million in revenue and up to $9 million in EBITDA, supported by anticipated additional MEG orders, a stronger H2 shipment profile, the planned H2 launch of its Somfit D device to accelerate penetration in the U.S. home sleep testing market, a targeted U.S. commercial restructure, and efforts to expand bank funding capacity to back its growth and working capital needs.

The most recent analyst rating on (AU:CMP) stock is a Hold with a A$0.33 price target. To see the full list of analyst forecasts on Compumedics Limited stock, see the AU:CMP Stock Forecast page.