Compumedics Limited (CMP) AI Stock Analysis

• Market Cap: AU$65.92M
• Dividend Yield: N/A
• Average Volume (3M): 87.45K
• Price to Earnings (P/E): 660.0
• Beta (1Y): 0.36
• Revenue Growth: 2.23%
• EPS Growth: -263.16%
• Country: AU
• Employees: 155
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): <0.01
• 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$0.33 ▼(-3.24% Downside)
• 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

Recurring revenue from consumables, software and services

Compumedics' business model includes capital equipment sales plus software licenses, consumables and service/support agreements. This installed-base driven mix creates recurring revenue streams and customer lock-in, supporting steadier revenue and margin recovery over multiple reporting cycles.

High gross margin (~60.7%)

A ~60.7% gross margin indicates the company earns healthy product-level economics, implying pricing power or manufacturing efficiency. Sustained gross margin provides room to invest in R&D, sales and support while absorbing operating leverage as revenue scales, aiding long-term profitability recovery.

Manageable leverage (debt-to-equity 0.64)

Moderate leverage gives Compumedics financial flexibility to fund working capital, service growth and targeted capex without excessive interest burden. This balance sheet position reduces refinancing risk and supports strategic investment or M&A if operating cash flow stabilizes.

Negative Factors

Weak net profitability

Despite revenue growth and strong gross margins, near-zero EBIT and negative net margin show operating expenses and non-operating items erode profits. Persistent low operating profitability limits retained earnings, constrains reinvestment and risks investor confidence over multiple quarters.

Severely deteriorated free cash flow

Deeply negative FCF growth and minimal operating-cash-to-net-income conversion indicate weak cash generation and potential working-capital stress. This impairs the firm's ability to fund R&D, inventory and services internally, increasing reliance on external financing or cost cuts long term.

Negative return on equity (-5.83%)

A negative ROE signals the company is destroying shareholder capital rather than generating returns. Over time this reflects inefficient capital allocation or margin pressures that can limit reinvestment, reduce ability to attract capital, and pressure strategic options if not corrected.

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	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	58.49M	51.04M	49.72M	42.41M	37.76M	35.74M
Gross Profit	34.10M	30.99M	26.07M	21.59M	19.32M	19.16M
EBITDA	4.29M	1.94M	2.79M	-5.05M	3.31M	2.56M
Net Income	109.00K	-1.27M	-338.00K	-6.12M	1.36M	998.00K
Balance Sheet
Total Assets	54.18M	54.39M	40.36M	41.18M	41.71M	38.55M
Cash, Cash Equivalents and Short-Term Investments	2.00M	2.69M	1.89M	3.80M	7.29M	6.77M
Total Debt	14.03M	13.88M	8.58M	9.47M	6.55M	5.82M
Total Liabilities	30.81M	32.57M	22.15M	22.89M	18.12M	16.39M
Stockholders Equity	23.37M	21.82M	18.21M	18.29M	23.59M	22.16M
Cash Flow
Free Cash Flow	4.56M	467.00K	-986.00K	-4.36M	302.00K	-230.00K
Operating Cash Flow	4.61M	681.00K	2.00M	49.00K	3.29M	1.32M
Investing Cash Flow	-5.58M	-7.37M	-2.99M	-4.41M	-2.98M	-1.55M
Financing Cash Flow	-1.10M	6.10M	-1.49M	-1.00M	1.61M	-179.00K

Compumedics Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CMP, the sentiment is Negative. The current price of 0.34 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.36, and above the 200-day MA of 0.32, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 7.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$159.46M	-61.34	-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$24.72M	-2.93	-103.74%	―	14.84%	39.64%
CMP	48 Neutral	AU$65.92M	660.00	-6.35%	―	2.23%	-263.16%
IPD	46 Neutral	AU$34.66M	-1.42	-74.00%	―	23.31%	-17.35%
CYC	44 Neutral	AU$101.92M	-5.40	-31.98%	―	34.20%	-23.90%
EMV	44 Neutral	AU$164.04M	-15.03	-70.55%	―	―	-257.32%

Compumedics Limited Corporate Events

Compumedics Lifts Earnings Quality on Record Revenue and Surging SaaS Streams

Compumedics reported record first-half fiscal 2026 sales orders of $34.9 million and revenue of $31.0 million, driven by stronger demand for its core sleep and neuro platforms and improved conversion of orders to shipments. The company’s growing software-as-a-service and annuity streams lifted recurring revenue, with SaaS revenue up 56% to $4.6 million, supporting a profitable swing to a $0.3 million net profit and EBITDA of $3.1 million.

Momentum in the magnetoencephalography (MEG) business, including $6.5 million of invoicing and a new $4.9 million system order, underpinned earnings quality and contributed to cash from operations of $1.8 million, versus an outflow a year earlier. Management reaffirmed full-year guidance for about $70 million in revenue and up to $9 million in EBITDA, signalling confidence in execution as cost discipline and a $2 million per annum efficiency program aim to further enhance margins and resilience of the revenue mix.

The most recent analyst rating on (AU:CMP) stock is a Hold with a A$0.35 price target. To see the full list of analyst forecasts on Compumedics Limited stock, see the AU:CMP Stock Forecast page.

Compumedics Delivers Record Orders and Profit Surge in First Half FY26

Compumedics reported a strong first half for FY26, with revenue from continuing operations rising 32% to A$31.0 million and profit before interest and tax jumping 664% to A$1.9 million. Net profit after tax attributable to members increased 124% to A$0.3 million, although the company chose not to declare an interim dividend.

The result was underpinned by record sales orders of A$34.9 million, up 6% on the prior corresponding period, driven by broad-based demand and better sales conversion in its core sleep and neuro platforms after a targeted refocus of the U.S. business. The half also included a A$4.9 million magnetoencephalography (MEG) order, and a 64% rise in SaaS and annuity sales, signalling a shift toward higher-quality recurring revenue and a more resilient earnings mix for stakeholders.

The most recent analyst rating on (AU:CMP) stock is a Hold with a A$0.35 price target. To see the full list of analyst forecasts on Compumedics Limited stock, see the AU:CMP Stock Forecast page.

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.