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Somnomed Limited (AU:SOM)
ASX:SOM

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
▲(25.00% 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.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for Somnomed's products and effective market penetration, supporting long-term business expansion.
Cash Flow Management
Strong cash flow management provides financial flexibility and a buffer against operational challenges, supporting sustainable business operations.
Low Leverage
Low leverage reduces financial risk and interest obligations, enhancing the company's ability to invest in growth opportunities and withstand economic downturns.
Negative Factors
Profitability Challenges
Persistent profitability issues may hinder reinvestment in growth and innovation, potentially impacting long-term competitive positioning and shareholder value.
Negative Return on Equity
Negative ROE indicates inefficiencies in generating profits from equity, which could deter investment and limit the company's ability to raise capital.
Net Losses
Ongoing net losses highlight operational inefficiencies and may require strategic changes to improve cost management and revenue generation.

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 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
65
Positive
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
58
Neutral
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
70
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue111.49M111.49M91.65M83.62M72.58M62.71M
Gross Profit66.73M66.73M55.13M45.77M39.15M33.90M
EBITDA1.58M1.58M-2.33M698.39K524.53K3.57M
Net Income-3.46M-3.46M-12.24M-8.00M-4.44M-1.19M
Balance Sheet
Total Assets80.97M80.97M69.80M62.49M58.09M56.17M
Cash, Cash Equivalents and Short-Term Investments17.29M17.29M16.18M11.96M15.64M21.11M
Total Debt8.03M8.03M6.72M23.51M12.01M8.91M
Total Liabilities34.58M34.58M24.78M40.09M30.31M24.01M
Stockholders Equity46.39M46.39M45.02M22.40M27.79M32.16M
Cash Flow
Free Cash Flow5.36M5.36M-7.72M-10.29M-6.93M-1.43M
Operating Cash Flow7.78M7.78M-6.33M-3.88M1.86M2.71M
Investing Cash Flow-3.98M-3.98M-5.34M-6.41M-8.47M-4.37M
Financing Cash Flow-3.38M-3.38M16.68M6.61M2.09M-6.80M

Somnomed Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.80
Price Trends
50DMA
0.81
Negative
100DMA
0.79
Positive
200DMA
0.68
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
53.79
Neutral
STOCH
47.22
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 0.8 is above the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.81, and above the 200-day MA of 0.68, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
AU$1.48B-40.76-44.49%55.91%22.60%
55
Neutral
AU$162.55M-47.81-7.26%21.65%81.40%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
50
Neutral
AU$106.14M-8.03-31.98%34.20%-23.90%
50
Neutral
AU$72.91M-54.35-6.35%2.23%-263.16%
48
Neutral
AU$71.31M-3.04-74.00%23.31%-17.35%
44
Neutral
AU$163.11M-15.52-70.55%-257.32%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SOM
Somnomed Limited
0.80
0.38
88.24%
AU:CMP
Compumedics Limited
0.38
0.12
46.15%
AU:IPD
Impedimed Limited
0.04
-0.02
-31.37%
AU:CYC
Cyclopharm Limited
0.95
-0.56
-37.09%
AU:EMV
EMvision Medical Devices Ltd.
1.78
-0.07
-3.78%
AU:4DX
4DMedical Ltd
3.51
3.07
697.73%

Somnomed Limited Corporate Events

Somnomed Limited Announces Director’s Interest Change
Dec 4, 2025

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.

Somnomed Limited Announces Director’s Increased Stake
Dec 4, 2025

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.

Somnomed Limited Issues Unquoted Equity Securities for Employee Incentives
Dec 4, 2025

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.

SomnoMed Announces Director’s Interest Change
Dec 4, 2025

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.

Somnomed Limited Announces Director’s Increased Stake
Dec 4, 2025

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.

Somnomed Limited Announces Director’s Interest Change
Dec 4, 2025

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.

Somnomed Limited Announces Director’s Interest Change
Dec 4, 2025

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.

Somnomed Limited Issues New Equity Securities
Dec 4, 2025

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.

SomnoMed Limited Successfully Passes All Resolutions at Annual General Meeting
Nov 27, 2025

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.

SomnoMed Limited Highlights Investment Risks and Future Prospects
Nov 27, 2025

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.

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.

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.

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.

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.

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.

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.

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.

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