Resonance Health Ltd (RHT) AI Stock Analysis

• Market Cap: AU$16.55M
• Dividend Yield: N/A
• Average Volume (3M): 274.95K
• Price to Earnings (P/E): 140.0
• Beta (1Y): 0.90
• Revenue Growth: 89.13%
• EPS Growth: 69.57%
• Country: AU
• Employees: 18
• Sector: Healthcare
• Sector Strength: 54
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.00
• Shares Outstanding: 459,616,150
• 10 Day Avg. Volume: 479,964
• 30 Day Avg. Volume: 274,946
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

The overall stock score for Resonance Health Ltd is driven primarily by its strong financial performance, marked by robust revenue growth and improved cash flow. However, technical analysis reveals bearish trends and oversold conditions, which may signal short-term volatility. Valuation metrics are weak with a negative P/E ratio, indicating challenges in profitability. Despite these issues, the company's solid financial foundation provides opportunities for future growth and operational improvements.

Resonance Health Ltd Business Overview & Revenue Model

Company Description

Resonance Health Ltd (RHT) is a healthcare technology company specializing in the development and commercialization of innovative medical imaging software and services. Operating primarily in the medical diagnostics sector, the company is renowned for its flagship product, FerriScan, a non-invasive liver diagnostic technology. Resonance Health's solutions are designed to improve patient outcomes by providing accurate and reliable diagnostic tools that assist in the management of diseases such as iron overload disorders.

How the Company Makes Money

Resonance Health Ltd generates revenue through the sale and licensing of its proprietary medical imaging software products, such as FerriScan, to healthcare providers and diagnostic imaging centers. The company's revenue model is based on charging fees for the use of its diagnostic services, which include image analysis and reporting. Additionally, Resonance Health may engage in partnership agreements with healthcare institutions and research organizations to expand the reach and application of its technologies. These collaborations can also contribute to the company's earnings through joint ventures or co-development projects.

Resonance Health Ltd Financial Statement Overview

Summary

Resonance Health Ltd demonstrates a solid financial position with strong revenue growth and a return to profitability. The company has maintained a robust balance sheet with low leverage and improved cash flow generation. While there are some operational challenges indicated by the negative EBITDA margin, the overall financial health is promising, with opportunities for further growth and efficiency improvements.

Income Statement

Resonance Health Ltd has shown strong revenue growth of 95% year-over-year, indicating robust demand for its services. The gross profit margin remains high at 100%, reflecting efficient cost management. The company has turned around its profitability, achieving a net profit margin of 1.97% compared to a loss in the previous year. However, the negative EBITDA margin indicates some underlying operational challenges that need attention.

Balance Sheet

The company maintains a healthy equity ratio of 53.9%, suggesting financial stability and a strong capital base. A low debt-to-equity ratio of 0.34 indicates conservative leverage, which reduces financial risk. Return on equity is modest at 1.55%, reflecting room for improvement in generating returns for shareholders.

Cash Flow

Operating cash flow has improved significantly, turning positive and resulting in a substantial free cash flow growth rate. The free cash flow to net income ratio is strong, indicating that the company efficiently converts its profits into cash. The operating cash flow to net income ratio is also healthy, showing effective cash management.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
8.59M	4.40M	3.83M	3.78M	3.67M
	Gross Profit
8.59M	4.40M	3.83M	3.78M	3.67M
	EBIT
-879.47K	-1.59M	-1.77M	188.19K	-1.18M
	EBITDA
-381.53K	-1.19M	-1.34M	707.69K	-839.34K
	Net Income Common Stockholders
169.30K	-780.36K	-1.14M	585.86K	-715.08K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.85M	6.36M	6.78M	8.86M	6.97M
	Total Assets
20.28M	10.98M	11.69M	12.44M	10.50M
	Total Debt
3.70M	272.94K	268.22K	60.10K	116.10K
	Net Debt
-3.16M	-6.09M	-6.51M	-8.80M	-6.86M
	Total Liabilities
9.35M	1.05M	995.58K	611.74K	591.04K
	Stockholders Equity
10.93M	9.94M	10.69M	11.83M	9.91M
Cash Flow		Free Cash Flow
1.01M	-624.93K	-1.42M	772.72K	1.06M
	Operating Cash Flow
1.39M	-157.03K	-712.67K	1.17M	1.31M
	Investing Cash Flow
-3.94M	-467.90K	-704.00K	-395.79K	-250.63K
	Financing Cash Flow
3.01M	-81.97K	-107.11K	1.20M	2.82M

Resonance Health Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RHT, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 12.67 is Positive, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:RHT.

Resonance Health Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RHT	64 Neutral	AU$16.55M	140.00	-3.11%	―	89.13%	69.57%
Sector *	52 Neutral	$5.21B	3.55	-41.91%	2.83%	15.12%	0.42%
SOM	50 Neutral	AU$102.65M	―	-15.86%	―	12.93%	62.47%
IMU	37 Underperform	$179.21M	―	-99.05%	―	―	-34.09%
BIT	36 Underperform	$3.98M	―	-119.28%	―	―	64.10%
CDX	36 Underperform	$23.50M	―	-467.81%	―	-75.71%	-8.26%

Resonance Health Ltd Corporate Events

Resonance Health Reports Record Cash Receipts and Strategic Growth Initiatives

Resonance Health Ltd reported record cash receipts of $14.9M over the last 12 months, with a positive cash flow from operations. The company completed a cost efficiency program, resulting in significant annual savings, and is progressing with major clinical trials and contract extensions in its SaMD business. The TrialsWest division is set for strong growth with new contracts and expanded capacity. The company is enhancing automation and efficiency to serve more customers at a lower cost, expecting annual savings of approximately $1.1M.

Director of Resonance Health Ltd Increases Shareholding Significantly

Resonance Health Ltd announced a significant change in the director’s interest in securities, with Director Aaron Brinkworth acquiring a substantial number of ordinary fully paid shares over several days in April 2025. This acquisition increases Brinkworth’s total holdings to over one million shares, indicating a strong vote of confidence in the company’s future prospects and potentially impacting the company’s market perception and stakeholder interests.

Resonance Health Ltd Reports Robust Financial Growth in 1H FY25

Resonance Health Ltd reported a significant financial performance for the first half of FY25, with a 60% increase in revenue to $5.2 million and a 35% rise in normalised operating EBITDA to $0.54 million. The company’s free cash flow surged by 353% to $0.9 million, indicating strong operational efficiency and financial health, potentially enhancing its industry positioning and stakeholder confidence.

Resonance Health Achieves Record Financial Performance and Secures Major Contracts

Resonance Health Ltd reported record financial performance for the half-year ending December 31, 2024, with customer receipts reaching $8.3 million, a 160% increase from the previous year. The company secured significant contracts in its CRO Services division, including a $13.8 million clinical trial contract, contributing to a total of $20.1 million in contract wins since August 2023. This growth reflects the company’s successful scaling of operations across its business units, positioning it strongly in the market.

Resonance Health Reports Revenue Growth but Increased Losses in H1 2024

Resonance Health Limited reported a 60% increase in revenues from ordinary activities, reaching $5,210,477 for the half-year ended 31 December 2024. Despite this growth in revenue, the company experienced an 86% increase in loss from ordinary activities after tax, amounting to $1,036,192. The financial results included an income tax benefit due to the R&D tax incentive refund, which highlights the company’s ongoing investment in research and development. The net tangible assets per ordinary security decreased, indicating a potential concern for stakeholders regarding the company’s asset management.

Resonance Health to Announce Half-Year Results and Host Conference Call

Resonance Health Ltd announced that it will release its half-year results for the period ending 31 December 2024, on or before 28 February 2025, via the Australian Securities Exchange. The company will host a conference call on the same day, led by its CEO and CFO, to discuss these results with investors and analysts. This move reflects the company’s transparency and engagement with its stakeholders, potentially impacting its industry position by reinforcing its commitment to shareholder communication.