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Somnomed Limited (AU:SOM)
ASX:SOM
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Somnomed Limited (SOM) AI Stock Analysis

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AU:SOM

Somnomed Limited

(Sydney:SOM)

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Neutral 55 (OpenAI - 4o)
Rating:55Neutral
Price Target:
AU$1.00
▲(29.87% Upside)
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.

Somnomed Limited (SOM) vs. iShares MSCI Australia ETF (EWA)

Somnomed Limited Business Overview & Revenue Model

Company DescriptionSomnoMed 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 MoneySomnomed 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 revenue growth, but continuous profitability issues and cash flow challenges are concerning. The balance sheet is stable due to equity financing, yet operational inefficiencies impact financial performance.
Income Statement
65
Positive
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
58
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
70
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue100.25M111.49M91.65M83.62M72.58M62.71M
Gross Profit57.29M66.73M55.13M45.77M39.15M33.90M
EBITDA1.44M1.58M-2.33M698.39K820.83K3.57M
Net Income-6.00M-3.46M-12.24M-8.00M-4.44M-1.19M
Balance Sheet
Total Assets74.99M80.97M69.80M62.49M58.09M56.17M
Cash, Cash Equivalents and Short-Term Investments18.50M17.29M16.18M11.96M15.64M21.11M
Total Debt5.91M8.03M6.72M23.51M12.01M8.91M
Total Liabilities27.53M34.58M24.78M40.09M30.31M24.01M
Stockholders Equity47.46M46.39M45.02M22.40M27.79M32.16M
Cash Flow
Free Cash Flow809.32K5.36M-7.72M-10.29M-6.93M-1.43M
Operating Cash Flow2.32M7.78M-6.33M-3.88M1.86M2.71M
Investing Cash Flow-4.52M-3.98M-5.34M-6.41M-8.47M-4.37M
Financing Cash Flow6.91M-3.38M16.68M6.61M2.09M-6.80M

Somnomed Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.77
Price Trends
50DMA
0.80
Negative
100DMA
0.75
Positive
200DMA
0.65
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
38.47
Neutral
STOCH
11.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SOM, the sentiment is Neutral. The current price of 0.77 is below the 20-day moving average (MA) of 0.85, below the 50-day MA of 0.80, and above the 200-day MA of 0.65, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 11.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SOM.

Somnomed Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
$178.91M-51.25-7.26%21.65%81.40%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
50
Neutral
AU$61.51M-46.38-6.35%2.23%-263.16%
48
Neutral
$73.35M-74.00%23.31%-17.35%
44
Neutral
AU$176.12M-16.52-70.55%-257.32%
41
Neutral
AU$830.45M-22.71-44.49%55.91%22.60%
41
Neutral
AU$70.02M-5.38-31.98%34.20%-23.90%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SOM
Somnomed Limited
0.77
0.49
170.18%
AU:CMP
Compumedics Limited
0.36
0.06
20.00%
AU:IPD
Impedimed Limited
0.04
-0.02
-35.71%
AU:CYC
Cyclopharm Limited
0.63
-0.74
-54.01%
AU:EMV
EMvision Medical Devices Ltd.
1.85
0.07
3.93%
AU:4DX
4DMedical Ltd
1.44
0.94
188.00%

Somnomed Limited Corporate Events

SomnoMed Transitions to Half-Yearly Reporting After ASX Update
Oct 22, 2025

SomnoMed Limited announced that the Australian Stock Exchange has advised the company that it is no longer required to submit quarterly activity and cashflow reports. As a result, SomnoMed will transition to half-year and full-year reporting after releasing its Q1 FY26 update on 30 October 2025. This change is expected to streamline the company’s reporting process and may impact how stakeholders track the company’s financial performance.

The most recent analyst rating on (AU:SOM) stock is a Buy 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: Advancing Sleep Medicine Amidst Market Speculation
Oct 20, 2025

SomnoMed Limited’s recent presentation at the Canaccord Drug & Devices Conference highlights the company’s ongoing efforts to revolutionize the sleep medicine industry. While the document includes forward-looking statements about future sales and operational advancements, it emphasizes the speculative nature of the company’s securities and the inherent risks involved. Stakeholders are advised to consider their personal financial circumstances before investing, as the company does not guarantee returns or dividend payments.

The most recent analyst rating on (AU:SOM) stock is a Buy 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 to Boost Employee Incentives
Oct 7, 2025

Somnomed Limited has announced the issuance of unquoted equity securities, including zero exercise price options expiring in 2030 and 2031, as part of its employee incentive scheme. This strategic move is aimed at enhancing employee engagement and aligning their interests with the company’s long-term growth objectives, potentially strengthening its market position and operational capabilities.

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 Prepares for Annual General Meeting with Proxy Form Release
Oct 7, 2025

SomnoMed Limited has released a proxy form for its upcoming Annual General Meeting scheduled for November 27, 2025. Shareholders are encouraged to appoint proxies and provide voting directions on various items of business, including the adoption of the Remuneration Report and the election or re-election of directors. The release outlines the necessary steps for appointing a proxy, directing votes, and lodging the proxy form, emphasizing the importance of timely submission to ensure participation in the meeting.

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 Upcoming AGM with Key Resolutions
Oct 7, 2025

SomnoMed Limited has announced its Annual General Meeting (AGM) scheduled for November 27, 2025, in Sydney. The meeting will address several key items including the consideration of financial statements, adoption of the remuneration report, election and re-election of directors, and the issuance of options under the Non-Executive Share Option Plan 2021. Shareholders are encouraged to review proxy forms and voting exclusions are in place for certain resolutions, particularly those involving key management personnel.

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 Director Reduces Shareholding in Significant Transaction
Sep 16, 2025

SomnoMed Limited has announced a change in the director’s interest, with Benjamin Gisz reducing his indirect shareholding in the company. The transaction involved the sale of 13,211,430 ordinary shares at $0.70 per share, resulting in Gisz holding 54,504,649 ordinary shares post-transaction. This change reflects a significant adjustment in the director’s investment, potentially impacting the company’s market perception and investor confidence.

The most recent analyst rating on (AU:SOM) stock is a Buy with a A$0.99 price target. To see the full list of analyst forecasts on Somnomed Limited stock, see the AU:SOM Stock Forecast page.

SomnoMed Completes Significant Block Trade to Enhance Share Liquidity
Sep 16, 2025

SomnoMed Limited announced the successful completion of a block trade involving 16,071,430 shares at $0.70 per share on the ASX. This transaction included shares from the SomnoMed employee share trust and TDM Growth Partners, with TDM’s stake in SomnoMed reducing from 31.3% to 25.0%. The sale aimed to diversify SomnoMed’s share register and improve liquidity without diluting existing shareholders, attracting participation from new and existing institutional and retail shareholders.

The most recent analyst rating on (AU:SOM) stock is a Buy with a A$0.99 price target. To see the full list of analyst forecasts on Somnomed Limited stock, see the AU:SOM Stock Forecast page.

SomnoMed Limited Achieves Record Revenue Milestone
Aug 28, 2025

SomnoMed Limited is an Australian company specializing in the production and commercialization of oral appliances for the treatment of sleep-related disorders, particularly obstructive sleep apnea (OSA). The company operates globally, with a strong presence in Europe, North America, and Asia Pacific.

SomnoMed Limited Releases Corporate Governance Statement
Aug 28, 2025

SomnoMed Limited has released its Corporate Governance Statement in line with the 4th Edition of the ASX Corporate Governance Principles and Recommendations. The statement outlines the company’s adherence to these principles, emphasizing the role of its Board in ensuring effective governance, strategic direction, and accountability. The Board’s responsibilities include overseeing management, approving strategic plans, and ensuring risk management frameworks are in place. The statement also details the procedures for appointing directors and senior executives, highlighting the importance of transparency and informed decision-making for shareholders.

The most recent analyst rating on (AU:SOM) stock is a Buy 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 Releases Full-Year 2025 Results
Aug 28, 2025

SomnoMed Limited has released its full-year 2025 results, emphasizing its commitment to treatment-focused, technology-driven solutions. The announcement highlights the speculative nature of its securities, cautioning investors about potential risks and uncertainties that could impact future performance. The company advises careful consideration of its securities in light of personal financial circumstances.

The most recent analyst rating on (AU:SOM) stock is a Buy 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 Achieves Strong FY25 Results with Revenue Growth and Strategic Expansion
Aug 28, 2025

SomnoMed Limited reported a strong financial performance for FY25, with a 21.6% increase in revenue to $111.5 million, surpassing market guidance. The company achieved significant milestones, including treating one million patients and expanding its facility capacity to support future growth. The North American and European markets were key contributors to this success, with Europe remaining the largest revenue-generating region. The company’s strategic focus on increasing capacity and reducing backlog positions it well for sustained growth and value delivery.

The most recent analyst rating on (AU:SOM) stock is a Buy 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 Reports 21.6% Revenue Growth in 2025 Despite Losses
Aug 28, 2025

SomnoMed Limited has released its 2025 Full Year Report, highlighting a significant 21.6% increase in revenue from ordinary activities to $111.5 million. Despite reporting a loss from ordinary activities after tax of $3.5 million, this marks a substantial improvement of 71.8% compared to the previous year. The company announced that no dividend will be paid for the year ended 30 June 2025, reflecting a strategic focus on reinvestment and growth. The results suggest a positive trajectory in financial performance, potentially enhancing SomnoMed’s positioning in the sleep-related breathing disorder treatment industry.

The most recent analyst rating on (AU:SOM) stock is a Buy 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 to Release FY25 Financial Results and Host Investor Webinar
Aug 7, 2025

SomnoMed Limited announced that its FY25 Financial Results and Investor Presentation will be released to the ASX on August 28, 2025. Co-CEOs Karen Borg and Amrita Blickstead, along with CFO Ye-Fei Guo, will host a webinar to discuss the results and engage in a Q&A session with investors. This event is significant for stakeholders as it provides insights into the company’s financial health and strategic direction.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Nov 07, 2025