Envoy Medical (COCH) AI Stock Analysis

• Market Cap: $27.30M
• Dividend Yield: N/A
• Average Volume (3M): 17.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 28.57%
• EPS Growth: -656.56%
• Country: US
• Employees: 34
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Devices
• EPS (TTM): -1.32
• Shares Outstanding: 21,326,618
• 10 Day Avg. Volume: 15,435
• 30 Day Avg. Volume: 17,379
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 99.83
• Price to Cash Flow (P/CF): -2.60
• P/FCF Ratio: 0.00
• 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: $6.00
• Price Target Upside: 368.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Envoy Medical's overall stock score is low due to significant financial challenges, including declining revenues and high leverage. Technical indicators also point to bearish sentiment, while the lack of positive valuation metrics further detracts from the score. The company's focus should be on improving financial stability and operational efficiency to enhance future stock performance.

Positive Factors

Financial Outlook

The analyst maintains a BUY rating for Envoy Medical, raising the 12-month price target to $9.00, representing significant upside from the current share price.

Market Opportunity

Envoy Medical's Acclaim CI, a fully implanted cochlear implant, addresses a significant market opportunity by eliminating the need for an external component.

Regulatory Progress

The recent IDE approval for the Acclaim CI with the FDA to begin clinical testing is a significant milestone for the company.

Negative Factors

Financial Risks

Envoy Medical balances high risks with large upside opportunities, with a billion dollars market potential presenting high rewards for the risks.

Operational Risks

Envoy Medical is in an early/clinical/commercialization stage, generating minimal revenue and facing high risks associated with clinical trials or commercial failures.

Revenue Challenges

Envoy Medical is in an early/clinical/commercialization stage, generating minimal revenue.

Envoy Medical Business Overview & Revenue Model

Company Description

Envoy Medical (COCH) is a pioneering company in the medical technology sector, specializing in advanced hearing solutions. The company's flagship product is the Esteem® Hearing Implant, which is fully implanted and designed to improve hearing for individuals with moderate to severe sensorineural hearing loss. Envoy Medical focuses on innovation and technology to provide high-quality, life-enhancing hearing solutions that integrate seamlessly into patients' lives.

How the Company Makes Money

Envoy Medical generates revenue primarily through the sale of its Esteem® Hearing Implant. The company targets individuals with moderate to severe sensorineural hearing loss who seek a permanent and unobtrusive hearing solution. Revenue is derived from direct sales to healthcare providers, clinics, and hospitals, which in turn offer the implant to patients. Envoy Medical may also engage in partnerships with medical institutions and hearing specialists to expand its reach and enhance product adoption. Additionally, the company may have revenue streams from ancillary services such as post-implantation support and maintenance. Key factors contributing to its earnings include its innovative technology, the growing demand for advanced hearing solutions, and potential reimbursement from insurance providers for the implant procedure.

Envoy Medical Financial Statement Overview

Summary

Envoy Medical is facing significant financial challenges, characterized by declining revenue, persistent losses, and high debt levels. The company's negative equity and cash flow issues underscore the need for strategic realignment to achieve financial stability and growth.

Income Statement

The company has been experiencing declining revenue over the years, with TTM (Trailing-Twelve-Months) revenue dropping significantly. Gross profit margins are negative, indicating costs exceed revenue substantially. Net profit margins are also deeply negative, suggesting significant unprofitability. Both EBIT and EBITDA margins show considerable losses, highlighting ongoing operational challenges.

Balance Sheet

The balance sheet reveals a precarious financial position with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is not meaningful due to negative equity, but the high total debt level poses potential financial risk. The company has been unable to generate positive equity, signaling financial instability.

Cash Flow

Operating and free cash flows are negative and worsening, reflecting insufficient cash generation to cover operating expenses. The free cash flow to net income ratio is not meaningful due to negative earnings, and the company relies heavily on financing activities to sustain operations, which is unsustainable in the long term.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
278.00K	316.00K	237.00K	310.00K
	Gross Profit
-589.00K	-473.00K	-720.00K	-459.00K
	EBIT
-21.47M	-18.37M	-8.71M	-6.87M
	EBITDA
-22.31M	-18.24M	-8.63M	-6.80M
	Net Income Common Stockholders
-21.06M	-29.91M	-15.92M	-8.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.95M	4.22M	183.00K	1.12M
	Total Assets
8.48M	7.64M	2.56M	2.62M
	Total Debt
5.36M	562.00K	34.53M	23.48M
	Net Debt
411.00K	-3.66M	34.35M	22.36M
	Total Liabilities
15.89M	9.40M	58.72M	47.58M
	Stockholders Equity
-7.41M	-1.76M	-56.17M	-44.96M
Cash Flow		Free Cash Flow
-26.80M	-17.81M	-9.02M	-7.06M
	Operating Cash Flow
-25.27M	-17.65M	-8.80M	-6.94M
	Investing Cash Flow
-1.53M	-153.00K	-218.00K	-125.00K
	Financing Cash Flow
14.39M	21.84M	8.09M	8.06M

Envoy Medical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COCH, the sentiment is Negative. The current price of 1.28 is below the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.43, and below the 200-day MA of 2.14, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.88 is Neutral, neither overbought nor oversold. The STOCH value of 3.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COCH.

Envoy Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.36B	1.24	-44.94%	2.70%	18.33%	1.47%
MDAI	41 Neutral	$31.65M	―	256.43%	―	238.96%	35.96%
CASI	41 Neutral	$32.69M	―	-301.80%	―	-13.78%	-34.45%
CLGN	38 Underperform	$28.64M	―	-79.46%	―	-95.30%	-135.89%
PYPD	30 Underperform	$25.60M	―	-1038.73%	―	―	-85.67%
GBIO	30 Underperform	$24.96M	―	-91.02%	―	236.92%	-0.57%
COCH	20 Underperform	$27.30M	―	1697.39%	―	28.57%	-656.56%