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Somnomed Limited (AU:SOM)
:SOM

Somnomed Limited (SOM) AI Stock Analysis

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AU

Somnomed Limited

(OTC:SOM)

Rating:53Neutral
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 (SOM) vs. iShares MSCI Australia ETF (EWA)

Somnomed Limited Business Overview & Revenue Model

Company DescriptionSomnomed 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 MoneySomnomed 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
45
Neutral
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
60
Neutral
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
50
Neutral
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
100.25M91.65M83.62M72.58M62.71M57.30M
Gross Profit
57.29M55.13M45.77M39.15M33.90M30.01M
EBIT
-682.02K-8.33M-4.07M-4.13M-651.38K-940.98K
EBITDA
1.44M-2.33M698.39K820.83K3.57M4.31M
Net Income Common Stockholders
-6.00M-12.24M-8.00M-4.44M-1.19M-1.12M
Balance SheetCash, Cash Equivalents and Short-Term Investments
12.84M16.18M11.96M15.64M21.11M30.17M
Total Assets
63.92M69.80M62.49M58.09M56.17M61.69M
Total Debt
18.54M6.72M23.51M12.01M8.91M15.53M
Net Debt
5.70M-9.46M11.55M-3.63M-12.20M-14.64M
Total Liabilities
34.02M24.78M40.09M30.31M24.01M27.86M
Stockholders Equity
29.90M45.02M22.40M27.79M32.16M33.84M
Cash FlowFree Cash Flow
809.32K-7.72M-10.29M-6.93M-1.43M3.00M
Operating Cash Flow
2.32M-6.33M-3.88M1.86M2.71M5.19M
Investing Cash Flow
-4.52M-5.34M-6.41M-8.47M-4.37M-1.83M
Financing Cash Flow
6.91M16.68M6.61M2.09M-6.80M18.87M

Somnomed Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.63
Price Trends
50DMA
0.52
Positive
100DMA
0.55
Positive
200DMA
0.47
Positive
Market Momentum
MACD
0.03
Negative
RSI
62.99
Neutral
STOCH
93.65
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

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
54
Neutral
$5.31B3.26-45.10%2.79%16.76%0.02%
AUSOM
53
Neutral
AU$136.15M-15.86%12.93%62.47%
AUCMP
50
Neutral
AU$54.78M-8.08%-5.62%-225.71%
AUIPD
50
Neutral
AU$68.93M-51.08%10.22%-2.94%
AUEMV
48
Neutral
AU$151.79M-58.61%-74.88%
AUCYC
44
Neutral
AU$116.69M-35.20%4.68%-155.42%
AU4DX
42
Neutral
AU$139.65M-52.37%471.29%-4.58%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SOM
Somnomed Limited
0.63
0.39
162.50%
AU:CMP
Compumedics Limited
0.28
-0.02
-6.67%
AU:IPD
Impedimed Limited
0.03
-0.04
-50.72%
AU:CYC
Cyclopharm Limited
1.05
-0.53
-33.54%
AU:EMV
EMvision Medical Devices Ltd.
1.78
-0.16
-8.25%
AU:4DX
4DMedical Ltd
0.30
-0.36
-54.55%

Somnomed Limited Corporate Events

SomnoMed Reports Positive Cash Flow Amidst Investment Challenges
Apr 30, 2025

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
Apr 7, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.