Somnomed Limited (SOM) AI Stock Analysis

• Market Cap: AU$136.15M
• Dividend Yield: N/A
• Average Volume (3M): 64.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 12.93%
• EPS Growth: 62.47%
• Country: AU
• Employees: 300
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Devices
• EPS (TTM): -0.03
• Shares Outstanding: 216,108,250
• 10 Day Avg. Volume: 44,518
• 30 Day Avg. Volume: 64,100
• PEG Ratio: -0.44
• Price to Book (P/B): 2.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 168.22
• 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: AU$0.80
• Price Target Upside: 26.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: AU$0.50 ▼(-20.63%Downside)

Somnomed Limited's overall stock score is primarily influenced by its challenging financial performance, particularly negative profitability and cash flow issues. Technical analysis shows positive momentum, but valuation concerns due to a negative P/E ratio and no dividend yield weigh heavily on the score.

Somnomed Limited Business Overview & Revenue Model

Company Description

Somnomed Limited (SOM) is a medical device company that specializes in the development and manufacturing of oral appliances for the treatment of obstructive sleep apnea (OSA) and other sleep-related disorders. The company's core product, the SomnoDent, is an innovative, non-invasive oral device designed to improve sleep quality by keeping the airway open during sleep. Somnomed operates in the healthcare and medical technology sectors, providing solutions that aim to enhance patient outcomes and quality of life.

How the Company Makes Money

Somnomed Limited generates revenue primarily through the sale of its oral appliances, such as the SomnoDent device, to dental professionals and healthcare providers who treat patients with obstructive sleep apnea. The company collaborates with dental clinics, sleep centers, and other healthcare facilities to distribute its products globally. Additionally, Somnomed may engage in direct sales and strategic partnerships to expand its market reach. Revenue streams are largely dependent on the adoption of their products by healthcare professionals and the overall demand for non-invasive sleep apnea treatments.

Somnomed Limited Financial Statement Overview

Summary

Somnomed Limited shows revenue growth, but profitability issues persist with negative net income and EBIT margins. The balance sheet is stable with a healthy equity ratio, yet cash flow challenges indicate potential liquidity issues.

Income Statement

Somnomed Limited shows revenue growth over the last few years, indicating demand for its products. However, the company is struggling with profitability, as evidenced by consistent negative net income and EBIT margins. The gross profit margin remains relatively stable, but the negative EBIT and net profit margins highlight operational challenges and inefficiencies.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio, suggesting a balanced approach to leveraging. However, the return on equity is negative due to recurring net losses. The equity ratio is healthy, indicating that a significant portion of the company's assets is financed by equity, which provides stability.

Cash Flow

Somnomed Limited faces challenges in generating positive cash flow from operations, impacting its ability to reinvest in the business without external financing. Although free cash flow has shown improvement in recent years, it remains negative, indicating potential liquidity issues.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
100.25M	91.65M	83.62M	72.58M	62.71M	57.30M
	Gross Profit
57.29M	55.13M	45.77M	39.15M	33.90M	30.01M
	EBIT
-682.02K	-8.33M	-4.07M	-4.13M	-651.38K	-940.98K
	EBITDA
1.44M	-2.33M	698.39K	820.83K	3.57M	4.31M
	Net Income Common Stockholders
-6.00M	-12.24M	-8.00M	-4.44M	-1.19M	-1.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.84M	16.18M	11.96M	15.64M	21.11M	30.17M
	Total Assets
63.92M	69.80M	62.49M	58.09M	56.17M	61.69M
	Total Debt
18.54M	6.72M	23.51M	12.01M	8.91M	15.53M
	Net Debt
5.70M	-9.46M	11.55M	-3.63M	-12.20M	-14.64M
	Total Liabilities
34.02M	24.78M	40.09M	30.31M	24.01M	27.86M
	Stockholders Equity
29.90M	45.02M	22.40M	27.79M	32.16M	33.84M
Cash Flow		Free Cash Flow
809.32K	-7.72M	-10.29M	-6.93M	-1.43M	3.00M
	Operating Cash Flow
2.32M	-6.33M	-3.88M	1.86M	2.71M	5.19M
	Investing Cash Flow
-4.52M	-5.34M	-6.41M	-8.47M	-4.37M	-1.83M
	Financing Cash Flow
6.91M	16.68M	6.61M	2.09M	-6.80M	18.87M

Somnomed Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SOM, the sentiment is Positive. The current price of 0.63 is above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.52, and above the 200-day MA of 0.47, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 62.99 is Neutral, neither overbought nor oversold. The STOCH value of 93.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SOM.

Somnomed Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.31B	3.26	-45.10%	2.79%	16.76%	0.02%
SOM	53 Neutral	AU$136.15M	―	-15.86%	―	12.93%	62.47%
CMP	50 Neutral	AU$54.78M	―	-8.08%	―	-5.62%	-225.71%
IPD	50 Neutral	AU$68.93M	―	-51.08%	―	10.22%	-2.94%
EMV	48 Neutral	AU$151.79M	―	-58.61%	―	―	-74.88%
CYC	44 Neutral	AU$116.69M	―	-35.20%	―	4.68%	-155.42%
4DX	42 Neutral	AU$139.65M	―	-52.37%	―	471.29%	-4.58%

Somnomed Limited Corporate Events

SomnoMed Reports Positive Cash Flow Amidst Investment Challenges

SomnoMed Limited’s latest quarterly cash flow report reveals a net cash inflow from operating activities amounting to $848,000 for the current quarter, indicating a positive operational performance. However, the company experienced a net cash outflow from investing activities of $932,000, reflecting ongoing investments in property, plant, and equipment, as well as intellectual property. The overall cash position improved by $18,498,000, suggesting robust financial management despite the challenges in the investment domain.

SomnoMed Addresses Impact of New US Tariffs on Operations

SomnoMed Limited, a leader in oral appliance treatment solutions for sleep-related breathing disorders, has assessed the potential impact of new reciprocal tariffs announced by the USA on its operations. With the Philippines as its primary manufacturing location, the company plans to absorb the immediate costs of these tariffs to ensure uninterrupted patient care. SomnoMed maintains its FY25 revenue guidance of approximately $105 million and an EBITDA of between $7 million to $9 million, demonstrating its commitment to stakeholders despite the evolving tariff situation.