Resonance Health Ltd (RHT) AI Stock Analysis

• Market Cap: AU$19.76M
• Dividend Yield: N/A
• Average Volume (3M): 124.78K
• Price to Earnings (P/E): 140.0
• Beta (1Y): 1.11
• Revenue Growth: 89.13%
• EPS Growth: 69.57%
• Country: AU
• Employees: 18
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.00
• Shares Outstanding: 459,616,150
• 10 Day Avg. Volume: 137,003
• 30 Day Avg. Volume: 124,784
• PEG Ratio: 0.08
• Price to Book (P/B): 7.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.63
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Resonance Health Ltd shows a solid financial foundation driven by strong revenue growth and improved cash flow, which are significant strengths. However, technical analysis indicates mixed signals with some resistance and limited upward momentum. Valuation concerns due to a negative P/E ratio and lack of dividend yield weigh down the overall score.

Resonance Health Ltd Business Overview & Revenue Model

Company Description

Resonance Health Limited, a healthcare technology and services company, designs, develops, and manufactures software-as-medical devices in the Asia Pacific, North America, South America, Europe, the Middle East, and Africa. It offers FerriScan, a non-invasive MRI based system for quantifying liver iron concentration (LIC); FerriSmart, an artificial intelligence (AI) assisted device for the automated real-time assessment of LIC; HepaFat-AI, an AI-assisted device for the automated real-time multi-metric measurement of liver-fat; CardiacT2, a dual analysis service with FerriScan for assessing heart iron loading; HepaFat-Scan, a non-invasive MRI-based solution for the assessment of liver-fat in liver tissue; and LiverSmart, a non-invasive MRI-based multi-parametric device combining FerriSmart and HepaFat-AI into a consolidated report. It also offers quantitative imaging measurements and CRO, such as quality-assured image analysis, imaging charter development, project and data management, issue resolution, site tracker and clinical trial progress report, and coordination of data flow services; biomarkers, blood, urine, and protein analytes, as well as RNA, DNA, and genotyping services; and protocol development, assessment of subject inclusion or exclusion, decisions on dose modifications, and evaluating the safety profile of a new therapy, as well as supporting primary and secondary end-points demonstrating drug efficacy services for multinational and multicenter clinical trials; and phantoms for the calibration of MRI machines. The company serves clinicians for the management of human diseases; and pharmaceutical and therapeutic companies for their clinical trials. Resonance Health Limited was incorporated in 1987 and is headquartered in Burswood, Australia.

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 strong revenue growth and a return to profitability, with a robust balance sheet and improved cash flow generation. However, the negative EBITDA margin highlights some operational challenges.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	10.53M	8.59M	4.40M	3.83M	3.78M	3.67M
Gross Profit	10.53M	8.59M	4.40M	3.83M	3.78M	3.67M
EBITDA	-1.14M	-382.00K	-1.19M	-1.34M	552.35K	-839.00K
Net Income	-309.14K	169.30K	-780.00K	-1.14M	585.86K	-715.00K
Balance Sheet
Total Assets	17.94M	20.28M	10.98M	11.69M	12.44M	10.50M
Cash, Cash Equivalents and Short-Term Investments	3.51M	6.85M	6.36M	6.78M	8.86M	6.97M
Total Debt	3.60M	3.70M	272.94K	268.22K	60.10K	116.10K
Total Liabilities	7.90M	9.35M	1.05M	995.58K	611.74K	591.04K
Stockholders Equity	10.04M	10.93M	9.94M	10.69M	11.83M	9.91M
Cash Flow
Free Cash Flow	2.41M	1.01M	-624.93K	-1.42M	772.72K	1.06M
Operating Cash Flow	2.53M	1.39M	-157.03K	-712.67K	1.17M	1.31M
Investing Cash Flow	-7.77M	-3.94M	-467.90K	-704.00K	-395.79K	-250.63K
Financing Cash Flow	2.78M	3.01M	-81.97K	-107.11K	1.20M	2.82M

Resonance Health Ltd Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:RHT, the sentiment is Positive. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.70 is Neutral, neither overbought nor oversold. The STOCH value of 22.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$19.76M	140.00	-3.11%	―	89.13%	69.57%
PCK	55 Neutral	AU$66.31M	―	-457.46%	―	21.93%	10.34%
SHG	54 Neutral	AU$107.10M	―		―	―	―
Sector *	52 Neutral	kr5.55B	11.43	-72.81%	7.82%	28.10%	22.23%
IME	46 Neutral	AU$15.29M	―	-17.24%	―	34.47%	41.83%
EMD	44 Neutral	AU$16.51M	―	-74.80%	―	-9.16%	89.23%
HIQ	39 Underperform	AU$6.90M	―		―	18.53%	33.17%

Resonance Health Ltd Corporate Events

Resonance Health Expands TrialsWest with New Mandurah Site

Resonance Health Ltd is expanding its TrialsWest business with the opening of a third clinical trial site in Mandurah, Western Australia, expected in August 2025. This expansion is part of the company’s strategy to increase participant capacity and enhance its clinical trial operations, particularly for major pharmaceutical trials. The new site in Mandurah, a rapidly growing city, aligns with the company’s goal to establish trial sites in accessible, densely populated areas with low setup costs, supporting its long-term growth and market positioning.

Resonance Health Director Increases Shareholding

Resonance Health Ltd has announced a change in the director’s interest, with Simon Panton acquiring an additional 500,000 ordinary fully paid shares through an on-market trade. This acquisition, valued at $17,500, increases Panton’s total shareholding to 74,800,000 shares, reflecting a strategic move that could influence the company’s governance and shareholder dynamics.

Resonance Health Launches InvestorHub to Enhance Investor Engagement

Resonance Health Ltd has launched ‘InvestorHub’, a new platform aimed at enhancing engagement with investors and market participants. This initiative is part of the company’s strategy to support its growth across three business areas: Clinical Trial Management, SaMD Image Analysis Services, and Clinical Trial Site Services. The InvestorHub will provide a centralized location for shareholders to access company announcements and updates, fostering better communication and interaction with the company’s leadership. This move is expected to support Resonance Health’s ongoing expansion and innovation efforts, as it continues to scale its operations and strengthen its market position.

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.