Somnomed Limited (SOM) AI Stock Analysis

• Market Cap: AU$140.47M
• Dividend Yield: N/A
• Average Volume (3M): 70.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: 12.93%
• EPS Growth: 62.47%
• Country: AU
• Employees: 300
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): -0.03
• Shares Outstanding: 216,108,250
• 10 Day Avg. Volume: 38,580
• 30 Day Avg. Volume: 70,274
• PEG Ratio: -0.45
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 173.57
• 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$0.50
• Price Target Upside: -22.87% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: AU$0.50 ▼(-23.08%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 global leader in the provision of oral appliances for the treatment of sleep-related breathing disorders, including obstructive sleep apnea (OSA). The company operates primarily in the medical devices sector, offering a range of innovative sleep solutions designed to improve the quality of life for patients worldwide. Somnomed's core product line includes its custom-fit SomnoDent devices, which are recognized for their comfort, effectiveness, and compliance.

How the Company Makes Money

Somnomed Limited generates revenue primarily through the sale of its oral appliances, particularly the SomnoDent line, to healthcare providers, dentists, and sleep clinics. The company operates on a business-to-business model, partnering with medical professionals who prescribe its devices to patients diagnosed with sleep disorders. Revenue streams are bolstered by continuous product innovation, expansion into new markets, and strategic partnerships with healthcare organizations that help in extending its reach and influence. Additionally, Somnomed invests in marketing and educational initiatives to raise awareness about sleep apnea and the effectiveness of its treatment solutions, further driving demand and sales.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	91.65M	83.62M	72.58M	62.71M	57.30M
Gross Profit	55.13M	45.77M	39.15M	33.90M	30.01M
EBITDA	-2.33M	698.39K	820.83K	3.57M	4.31M
Net Income	-12.24M	-8.00M	-4.44M	-1.19M	-1.12M
Balance Sheet
Total Assets	69.80M	62.49M	58.09M	56.17M	61.69M
Cash, Cash Equivalents and Short-Term Investments	16.18M	11.96M	15.64M	21.11M	30.17M
Total Debt	6.72M	23.51M	12.01M	8.91M	15.53M
Total Liabilities	24.78M	40.09M	30.31M	24.01M	27.86M
Stockholders Equity	45.02M	22.40M	27.79M	32.16M	33.84M
Cash Flow
Free Cash Flow	-7.72M	-10.29M	-6.93M	-1.43M	3.00M
Operating Cash Flow	-6.33M	-3.88M	1.86M	2.71M	5.19M
Investing Cash Flow	-5.34M	-6.41M	-8.47M	-4.37M	-1.83M
Financing Cash Flow	16.68M	6.61M	2.09M	-6.80M	18.87M

Somnomed Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.65 is below the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.61, and above the 200-day MA of 0.50, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 71.33 is Neutral, 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 *	69 Neutral	€3.49B	24.14	22.76%	2.35%	32.58%	18.20%
CMP	60 Neutral	AU$53.82M	―	-8.08%	―	-5.62%	-225.71%
IPD	55 Neutral	AU$105.43M	―	-51.08%	―	10.22%	-2.94%
SOM	53 Neutral	AU$140.47M	―	-15.86%	―	12.93%	62.47%
EMV	48 Neutral	AU$151.79M	―	-58.61%	―	―	-74.88%
CYC	45 Neutral	AU$121.69M	―	-35.20%	―	4.68%	-155.42%
4DX	44 Neutral	AU$123.37M	―	-52.37%	―	471.29%	-4.58%

Somnomed Limited Corporate Events

Somnomed Limited Announces Director’s Change in Interest

Somnomed Limited has announced a change in the interest of its director, Karen Borg, involving the acquisition of 600,000 zero exercise price options as part of her employment contract. This change reflects the company’s ongoing efforts to align its leadership incentives with long-term strategic goals, potentially impacting its market positioning and stakeholder interests by strengthening executive commitment and retention.

The most recent analyst rating on (AU:SOM) stock is a Buy with a A$0.45 price target. To see the full list of analyst forecasts on Somnomed Limited stock, see the AU:SOM Stock Forecast page.

SomnoMed Limited Announces Director’s Interest Change and New Employee Share Options

SomnoMed Limited announced a change in the director’s interest, with Amrita Singh Blickstead acquiring 600,000 zero exercise price options, increasing her total to 1,925,000 options. Additionally, the company plans to issue 1,000,000 options under the SomnoMed Employee Share Option Plan, contingent on shareholder approval, with a two-year expiry and a $0.65 exercise price, reflecting strategic incentives for key personnel.

The most recent analyst rating on (AU:SOM) stock is a Buy with a A$0.45 price target. To see the full list of analyst forecasts on Somnomed Limited stock, see the AU:SOM Stock Forecast page.

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.