Somnomed Limited (SOM) AI Stock Analysis

• Market Cap: AU$146.18M
• Dividend Yield: N/A
• Average Volume (3M): 705.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: 21.65%
• EPS Growth: 81.40%
• Country: AU
• Employees: 300
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): N/A
• Shares Outstanding: 218,183,260
• 10 Day Avg. Volume: 159,446
• 30 Day Avg. Volume: 705,406
• PEG Ratio: 0.48
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 25.69
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: AU$0.69 ▼(-4.58% Downside)

Somnomed Limited's overall stock score is primarily influenced by its strong revenue growth and effective cash flow management, which are positive indicators. However, significant challenges in profitability and a bearish technical outlook weigh heavily on the score. The negative P/E ratio and lack of dividend yield further impact the valuation negatively.

Positive Factors

Revenue Growth

Sustained high revenue growth indicates expanding adoption of Somnomed’s oral appliance solutions across clinicians and patients. Over 2–6 months this trend supports scale economics, stronger recurring device sales, and provides room to invest in distribution, R&D and support infrastructure.

Gross Margin Strength

A roughly 60% gross margin reflects durable production and pricing advantages for custom oral appliances. High gross margins create structural capacity to absorb sales, marketing and clinical training costs while protecting profitability as the business scales and faces pricing or reimbursement pressure.

Improved Cash Generation

Large improvement in free cash flow and positive operating cash flow materially strengthens financial flexibility. This durable cash-generation ability reduces reliance on external funding, supports capex and clinical partnerships, and cushions the business through reimbursement or demand cycles.

Negative Factors

Persistent Unprofitability

Despite healthy revenue and gross margins, persistent net losses indicate operating costs or SG&A are eroding returns. Over months this undermines free cash retention trends, limits ability to reinvest in growth initiatives, and may require structural cost rebalancing to reach sustained profitability.

Weak Return on Equity

A negative ROE signals the company isn’t converting invested capital into shareholder value. Even with low leverage, poor capital efficiency can hinder long-term funding, investor confidence, and the ability to scale commercial investments sustainably without improving underlying operational returns.

Demand / Reimbursement Concentration Risk

Dependence on clinician-led channels and reimbursement dynamics is a structural revenue risk. Changes in referral patterns, slower dental sleep adoption, or reimbursement shifts can persistently depress device demand and pricing power, constraining revenue stability and growth over multiple quarters.

Somnomed Limited Business Overview & Revenue Model

Company Description

SomnoMed Limited, together with its subsidiaries, engages in the production and sale of devices for the oral treatment of sleep related disorders in Europe, North America, and the Asia Pacific region. It offers SomnoDent, an oral appliance for obstructive sleep apnea; SomnoBrux, a dental guard for the treatment of teeth grinding damage; SomMorning Repositioner, which help return mandible back to its pre-treatment centric position; and SomTabs for cleaning oral devices. The company was incorporated in 1987 and is headquartered in Crows Nest, Australia.

How the Company Makes Money

Somnomed generates revenue primarily through the sale of its oral appliances, which are distributed to dental practitioners, sleep clinics, and healthcare providers across various regions. The company employs a direct sales model as well as partnerships with dental and medical professionals who prescribe its products to patients. Additionally, Somnomed benefits from recurring revenue streams through ongoing patient follow-ups, maintenance, and replacement of devices. Significant partnerships with healthcare organizations and adherence to regulatory standards further enhance its market positioning and contribute to its earnings.

Somnomed Limited Financial Statement Overview

Summary

Somnomed Limited shows strong revenue growth and effective cash flow management, indicating potential for future growth. However, profitability challenges, as evidenced by negative net profit margins and return on equity, are significant concerns. The balance sheet is stable with low leverage, but the lack of positive returns on equity needs addressing.

Income Statement

Somnomed Limited has shown a consistent revenue growth trend over the years, with a notable 11.22% increase in the latest period. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains strong at approximately 60%, suggesting effective cost management at the production level. Overall, while revenue growth is a positive sign, the persistent net losses highlight challenges in achieving operational profitability.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.17, indicating a conservative approach to leveraging. However, the negative return on equity suggests that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, reflecting a balanced asset structure. While the low leverage is a strength, the inability to generate positive returns remains a concern.

Cash Flow

Somnomed Limited has demonstrated a significant improvement in free cash flow, with a growth rate of over 562% in the latest period. The operating cash flow to net income ratio is positive, indicating that the company is generating cash from its operations despite net losses. The free cash flow to net income ratio is also favorable, suggesting efficient cash management. Overall, the cash flow position is strong, providing a cushion against operational challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	111.49M	111.49M	91.65M	83.62M	72.58M	62.71M
Gross Profit	66.73M	66.73M	55.13M	45.77M	39.15M	33.90M
EBITDA	1.58M	1.58M	-2.33M	698.39K	524.53K	3.57M
Net Income	-3.46M	-3.46M	-12.24M	-8.00M	-4.44M	-1.19M
Balance Sheet
Total Assets	80.97M	80.97M	69.80M	62.49M	58.09M	56.17M
Cash, Cash Equivalents and Short-Term Investments	17.29M	17.29M	16.18M	11.96M	15.64M	21.11M
Total Debt	8.03M	8.03M	6.72M	23.51M	12.01M	8.91M
Total Liabilities	34.58M	34.58M	24.78M	40.09M	30.31M	24.01M
Stockholders Equity	46.39M	46.39M	45.02M	22.40M	27.79M	32.16M
Cash Flow
Free Cash Flow	5.36M	5.36M	-7.72M	-10.29M	-6.93M	-1.43M
Operating Cash Flow	7.78M	7.78M	-6.33M	-3.88M	1.86M	2.71M
Investing Cash Flow	-3.98M	-3.98M	-5.34M	-6.41M	-8.47M	-4.37M
Financing Cash Flow	-3.38M	-3.38M	16.68M	6.61M	2.09M	-6.80M

Somnomed Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.72 is above the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.75, and above the 200-day MA of 0.70, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.08 is Neutral, neither overbought nor oversold. The STOCH value of 58.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SOM.

Somnomed Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SOM	55 Neutral	AU$146.18M	-41.88	-7.26%	―	21.65%	81.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CMP	48 Neutral	AU$78.91M	-57.25	-6.35%	―	2.23%	-263.16%
IPD	47 Neutral	$46.89M	-2.00	-74.00%	―	23.31%	-17.35%
CYC	46 Neutral	AU$130.03M	-9.69	-31.98%	―	34.20%	-23.90%
EMV	44 Neutral	AU$164.50M	-15.43	-70.55%	―	―	-257.32%
4DX	44 Neutral	AU$1.81B	-44.71	-44.49%	―	55.91%	22.60%

Somnomed Limited Corporate Events

SomnoMed Seeks ASX Quotation for 260,000 New Ordinary Shares

SomnoMed Limited has applied for quotation on the ASX of 260,000 new fully paid ordinary shares, to be issued on 13 January 2026. The additional securities arise from the exercise or conversion of existing options or other convertible instruments, modestly expanding the company’s issued capital base and potentially improving liquidity in its stock for existing and prospective investors.

The most recent analyst rating on (AU:SOM) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Somnomed Limited stock, see the AU:SOM Stock Forecast page.

SomnoMed Options Lapse, Trimming Potential Future Capital Dilution

SomnoMed Limited has notified the market that 346,000 SOMAA options, which were due to expire on 24 June 2027 with an exercise price of $2.00, have lapsed as the conditions attached to these conditional rights were not satisfied. The cessation of these options, effective 31 December 2025, slightly reduces the company’s potential future issued capital and may marginally affect dilution expectations for existing shareholders, but does not directly alter current operations or cash position.

The most recent analyst rating on (AU:SOM) stock is a Hold with a A$1.00 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

Somnomed Limited announced a change in the director’s interest, with Amrita Singh Blickstead acquiring 1,700,000 options, increasing her total options to 1,885,000. This change, approved at the Annual General Meeting, reflects the company’s ongoing commitment to aligning its leadership’s interests with its strategic goals, potentially impacting its market position and stakeholder confidence.

The most recent analyst rating on (AU:SOM) stock is a Hold with a A$1.00 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 Increased Stake

Somnomed Limited has announced a change in the director’s interest, with Karen Borg acquiring 1,700,000 options, as approved at the company’s Annual General Meeting. This change reflects an increase in Borg’s stake in the company, potentially signaling confidence in the company’s future performance and strategic direction, which may impact stakeholders’ perceptions and the company’s market positioning.

The most recent analyst rating on (AU:SOM) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Somnomed Limited stock, see the AU:SOM Stock Forecast page.

Somnomed Limited Issues Unquoted Equity Securities for Employee Incentives

Somnomed Limited announced the issuance of unquoted equity securities as part of an employee incentive scheme. This issuance includes options with specific expiration dates and exercise prices, which are not immediately quoted on the ASX, indicating a strategic move to motivate and retain key personnel while potentially impacting future financial performance.

The most recent analyst rating on (AU:SOM) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Somnomed Limited stock, see the AU:SOM Stock Forecast page.

SomnoMed Announces Director’s Interest Change

SomnoMed Limited announced a change in the director’s interest, with Benjamin Gisz acquiring 200,000 options, increasing his total to 685,000 options. This change, approved at the Annual General Meeting, reflects ongoing adjustments in the company’s leadership holdings, potentially influencing investor perceptions and the company’s strategic direction.

The most recent analyst rating on (AU:SOM) stock is a Hold with a A$1.00 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 Increased Stake

Somnomed Limited has announced a change in the director’s interest, specifically regarding Michael Gordon, who has acquired 200,000 additional options, increasing his total to 885,000 options. This change was approved at the company’s Annual General Meeting and reflects a strategic move to align the director’s interests with the company’s growth objectives, potentially impacting its market positioning positively.

The most recent analyst rating on (AU:SOM) stock is a Hold with a A$1.00 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

Somnomed Limited has announced a change in the director’s interest, with Andrew Price acquiring 300,000 options. This change, approved at the Annual General Meeting, reflects the company’s ongoing governance and strategic alignment, potentially impacting its operational focus and stakeholder interests.

The most recent analyst rating on (AU:SOM) stock is a Hold with a A$1.00 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

Somnomed Limited announced a change in the director’s interest, with Gaetano Alfred Gerrard Russo acquiring 600,000 additional options, as approved at the Annual General Meeting. This change reflects a strategic move to align the director’s interests with the company’s growth objectives, potentially impacting the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (AU:SOM) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Somnomed Limited stock, see the AU:SOM Stock Forecast page.

Somnomed Limited Issues New Equity Securities

Somnomed Limited has announced the issuance of unquoted equity securities, specifically options with varying expiration dates and exercise prices. This move is likely to impact the company’s financial strategy and market positioning by potentially increasing its capital base and providing incentives for stakeholders.

The most recent analyst rating on (AU:SOM) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Somnomed Limited stock, see the AU:SOM Stock Forecast page.

SomnoMed Limited Successfully Passes All Resolutions at Annual General Meeting

SomnoMed Limited announced the results of its Annual General Meeting held on November 27, 2025, where all resolutions were passed. The meeting included the adoption of the Remuneration Report and the election and re-election of directors, as well as the issuance of options to various individuals. The successful passing of these resolutions indicates strong support from stakeholders and may positively impact the company’s governance and strategic initiatives.

The most recent analyst rating on (AU:SOM) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Somnomed Limited stock, see the AU:SOM Stock Forecast page.

SomnoMed Limited Highlights Investment Risks and Future Prospects

SomnoMed Limited’s recent announcement highlights the speculative nature of its securities and the inherent risks involved in investing. The company emphasizes that while it aims for continued advancement in its operations, various factors beyond its control could impact future performance, making it crucial for investors to consider their personal circumstances before investing.

The most recent analyst rating on (AU:SOM) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Somnomed Limited stock, see the AU:SOM Stock Forecast page.