HeartBeam (BEAT) AI Stock Analysis

• Market Cap: $56.61M
• Dividend Yield: N/A
• Average Volume (3M): 89.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: N/A
• EPS Growth: 4.31%
• Country: US
• Employees: 21
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.15
• Shares Outstanding: 34,311,590
• 10 Day Avg. Volume: 76,817
• 30 Day Avg. Volume: 89,039
• PEG Ratio: -2.27
• Price to Book (P/B): 37.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.18
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -4.66K
• Enterprise Value/Ebitda: -1.80
• 1Y Price Target: $7.00
• Price Target Upside: 797.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 34 Underperform
• Price Target: ―

HeartBeam's overall score reflects its challenging financial position with significant net losses and cash flow issues. Despite promising developments in FDA clearances and market opportunities that could drive future growth, the current financial instability and bearish technical indicators weigh heavily on the stock's attractiveness. The earnings call provides some optimism about future potential, but the immediate financial concerns dominate the overall assessment.

Positive Factors

FDA Clearance

Achieving FDA clearance is a critical milestone that validates HeartBeam's technology, potentially accelerating market adoption and enhancing competitive positioning in the healthcare sector.

Market Expansion Strategy

Targeting the direct patient pay market, estimated at $1.3 to $2.6 billion annually, positions HeartBeam to capture significant revenue opportunities, supporting long-term growth and market penetration.

Successful Public Offering

The successful public offering demonstrates investor confidence and provides necessary capital to support R&D and commercialization efforts, enhancing financial stability and strategic execution.

Negative Factors

Financial Challenges

Persistent financial challenges, including lack of revenue and increasing net losses, threaten HeartBeam's sustainability, requiring effective management of cash flow and external financing.

Increased Operating Cash Outflow

Rising cash outflows due to R&D investments strain financial resources, necessitating careful cash management to avoid liquidity issues and ensure continued operational viability.

Uncertain FDA Review Timeline

Uncertainty in FDA review timelines poses risks to HeartBeam's strategic planning and commercialization efforts, potentially delaying market entry and revenue generation.

HeartBeam Business Overview & Revenue Model

Company Description

HeartBeam, Inc., a medical technology company, primarily focuses on telemedicine solutions for the detection and monitoring of cardiac disease outside a healthcare facility setting. The company also focuses on providing diagnostic data to physicians with care management of patients with cardiovascular disease. Its telehealth product comprises a credit card sized electrocardiogram machine and a cloud-based diagnostic software system to address the rapidly growing field of remote patient monitoring. The company was incorporated in 2015 and is headquartered in Santa Clara, California.

How the Company Makes Money

HeartBeam generates revenue primarily through the sale of its heart monitoring products and related services. The company's revenue model includes direct sales to healthcare providers and institutions, as well as partnerships with medical device distributors. Additionally, HeartBeam may engage in licensing agreements for its proprietary technology, enabling other companies to integrate HeartBeam's solutions into their own offerings. Service fees for data analysis and remote monitoring support also contribute to its revenue streams.

HeartBeam Financial Statement Overview

Summary

HeartBeam is facing significant financial challenges with no revenue generation, increasing net losses, and deteriorating balance sheet health. The cash flow analysis underscores the company's reliance on external financing to sustain operations. These factors collectively raise concerns about the company's financial viability and long-term sustainability in the healthcare sector.

Income Statement

HeartBeam has consistently reported zero revenue over the years, reflecting significant challenges in generating sales. The company has reported increasing net losses annually, with the latest net income at -$19.4 million. The lack of revenue growth and persistent negative EBIT and EBITDA margins highlight ongoing operational difficulties.

Balance Sheet

The company's balance sheet shows signs of weakening financial health. Despite having no total debt, the equity has significantly decreased over the years, with a current equity of $1.65 million compared to $13.41 million in 2021. The equity ratio has decreased, indicating reduced financial stability. The company's assets have also shrunk, raising concerns about long-term sustainability.

Cash Flow

HeartBeam's cash flow situation is concerning with negative operating cash flow and free cash flow, indicating cash outflows without corresponding inflows. This trend suggests difficulties in managing cash effectively. Additionally, the reliance on financing activities to support operations poses risks if external funding becomes constrained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-8.00K	0.00	0.00	0.00	0.00	0.00
EBITDA	-20.72M	-19.88M	675.00K	69.00K	-2.29M	0.00
Net Income	-20.62M	-19.45M	-14.64M	-12.96M	-4.43M	-1.07M
Balance Sheet
Total Assets	2.88M	3.28M	17.13M	4.04M	14.00M	51.00K
Cash, Cash Equivalents and Short-Term Investments	1.86M	2.38M	16.19M	3.59M	13.19M	24.00K
Total Debt	0.00	0.00	0.00	0.00	0.00	4.29M
Total Liabilities	2.47M	1.62M	1.19M	1.67M	588.00K	4.84M
Stockholders Equity	406.00K	1.65M	15.94M	2.37M	13.41M	-4.79M
Cash Flow
Free Cash Flow	-15.42M	-14.67M	-12.35M	-9.95M	-3.23M	-600.00K
Operating Cash Flow	-15.23M	-14.47M	-12.09M	-9.95M	-3.23M	-600.00K
Investing Cash Flow	-184.00K	-201.00K	-256.00K	0.00	0.00	0.00
Financing Cash Flow	11.51M	866.00K	24.99M	350.00K	16.40M	619.00K

HeartBeam Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BEAT, the sentiment is Negative. The current price of 0.78 is below the 20-day moving average (MA) of 1.56, below the 50-day MA of 1.63, and below the 200-day MA of 1.61, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 21.29 is Positive, neither overbought nor oversold. The STOCH value of 31.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BEAT.

HeartBeam Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MSPR	40 Underperform	$996.00K	―	―	―	-8.57%	-52.17%
VSEE	40 Underperform	$17.36M	-0.24	―	―	187.24%	82.90%
ICCT	39 Underperform	$34.14K	―	―	―	31.83%	-25.30%
BEAT	34 Underperform	$56.61M	-2.37	-792.01%	―	―	4.31%
HCTI	27 Underperform	$15.45M	-0.02	-182.56%	―	-21.88%	68.40%

HeartBeam Corporate Events

HeartBeam Appoints Robert Eno as New CEO

HeartBeam, Inc. has appointed Robert Eno as the new CEO, effective October 21, 2024, to lead the company through commercialization and growth of its innovative vector-based cardiac technology. Eno, who brings over 30 years of experience in strategic marketing and go-to-market strategies for breakthrough medical products, will focus on maximizing shareholder value and meeting corporate goals. Concurrently, founder Branislav Vajdic transitions to President, emphasizing further innovation in cardiac technology and AI applications. This leadership change aims to capitalize on the company’s strengths and push forward its transformative cardiac care solutions.