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Dynatronics (DYNT)
:DYNT
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Dynatronics (DYNT) AI Stock Analysis

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DYNT

Dynatronics

(OTC:DYNT)

Rating:49Neutral
Price Target:
$0.00
▼(-100.00% Downside)
Dynatronics receives a low overall stock score due to financial performance challenges and valuation concerns. The company's declining revenues, unprofitable status, and inconsistent cash flows weigh heavily on its prospects. Technical analysis offers a neutral view but does not offset the significant financial and valuation issues.
Positive Factors
Management Quality
The appointment of Ryan Staats as COO, with extensive industry experience, strengthens leadership and could enhance operational efficiency and compliance.
Product Diversification
A broad product portfolio in medical devices and rehabilitation equipment positions Dynatronics to capture diverse market opportunities and mitigate single-product risks.
Strategic Partnerships
Strategic partnerships can expand market reach and enhance product offerings, contributing to revenue growth and competitive positioning over time.
Negative Factors
Declining Revenue
Consistent revenue decline signals challenges in market demand or competitive positioning, impacting long-term growth and financial health.
Profitability Challenges
Ongoing profitability issues, indicated by negative EBIT and net income, suggest operational inefficiencies and hinder sustainable financial performance.
Cash Flow Inconsistencies
Inconsistent cash flows limit the company's ability to invest in growth opportunities and maintain financial stability, posing long-term operational risks.

Dynatronics (DYNT) vs. SPDR S&P 500 ETF (SPY)

Dynatronics Business Overview & Revenue Model

Company DescriptionDynatronics Corporation, a medical device company, designs, manufactures, and sells physical therapy, rehabilitation, orthopedics, pain management, and athletic training products in the United States. Its orthopedic soft bracing products include cervical collars, shoulder immobilizers, arm slings, wrist and elbow supports, abdominal and lumbosacral supports, maternity supports, knee immobilizers and supports, ankle walkers and supports, plantar fasciitis splints, and cold therapy products. The company provides therapeutic modality devices comprising electrotherapy, ultrasound, phototherapy, therapeutic lasers, shortwave diathermy, radial pulse therapy, hot and cold therapy, compression therapy, and electrodes. It also offers power and manually operated treatment tables, mat platforms, work tables, parallel bars, training stairs, weight racks, treadmills, and other related equipment. In addition, the company provides clinical supplies, including exercise bands and tubings, lotions and gels, orthopedic bracings, paper products, and other related supplies. It markets its products under the Bird & Cronin, Solaris, Hausmann, Physician's Choice, and PROTEAM brands. The company sells its products to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, and hospitals, as well as online. It also exports its products to approximately 30 countries. Dynatronics Corporation was founded in 1979 and is headquartered in Eagan, Minnesota.
How the Company Makes MoneyDynatronics makes money through the sale of its medical devices and rehabilitation equipment to healthcare providers such as hospitals, clinics, and individual practitioners. The company generates revenue by manufacturing and distributing a wide array of products that are critical in therapeutic and rehabilitation settings. Key revenue streams include direct sales to healthcare facilities and practitioners, as well as through partnerships with distributors who expand the company's reach in various markets. Additionally, Dynatronics may engage in strategic partnerships or collaborations that enhance its product offerings and market presence, contributing to its earnings.

Dynatronics Earnings Call Summary

Earnings Call Date:Feb 06, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted successful cost reduction efforts and new product launches, which contributed to a decrease in net loss. However, the company faced challenges with decreased net sales and uncertainty regarding new product revenue. The lowered revenue guidance reflects ongoing challenges in demand and customer relationships.
Q3-2024 Updates
Positive Updates
Cost Reduction and Profitability Improvement
Operating expenses reduced by $3.7 million year-to-date, maintaining gross margin rates year-over-year.
New Product Introductions
Launched three new Hausmann product lines (Timber, Titan Premier, and Forged) with positive customer feedback and strong inventory positions.
Decrease in Net Loss
Net loss reduced to $0.7 million in Q3 FY 2024 from $1.2 million in Q3 FY 2023.
Decrease in SG&A Expenses
Selling, general, and administrative expenses decreased by $1 million or 30% compared to the previous year.
Negative Updates
Decline in Net Sales
Net sales decreased from $9.2 million in Q3 FY 2023 to $7.7 million in Q3 FY 2024 due to changes in private label relationships and decreased demand in orthopedic soft bracing.
Uncertainty in Revenue from New Products
Too early to estimate revenue contribution from new product lines, indicating potential revenue uncertainty.
Reduced Revenue Guidance
Estimated net revenues for FY 2024 are $32.5 million to $34 million, reflecting slower demand and changes in customer relationships.
Company Guidance
In the third quarter earnings call for fiscal year 2024, Dynatronics provided guidance indicating that net revenues are projected to range between $32.5 million and $34 million due to slower demand in the rehabilitation sector and changes in private label customer relationships. The company did not provide gross margin guidance, citing a need for improved business stabilization before considering reintroducing such forecasts. Selling, general, and administrative expenses (SG&A) are anticipated to be between 30% and 32% of net sales for the fiscal year. The company's focus remains on strengthening customer relationships and enhancing operating profitability and financial flexibility.

Dynatronics Financial Statement Overview

Summary
Dynatronics faces significant challenges in revenue growth and profitability, with declining revenues and a decrease in gross profit margin. The balance sheet maintains a moderate debt-to-equity ratio, but declining stockholders' equity raises concerns. Cash flow inconsistencies further highlight the struggle to sustain positive cash flows, necessitating strategic improvements.
Income Statement
45
Neutral
Dynatronics has experienced declining revenues over the past years, with the TTM revenue showing a significant decrease from previous periods. The gross profit margin has also decreased, indicating potential cost management issues. The company continues to report negative EBIT and net income, reflecting ongoing profitability challenges. Despite these issues, the company has managed to improve its EBITDA margin slightly in recent periods.
Balance Sheet
55
Neutral
The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced capital structure. However, stockholders' equity has been declining, which could signal eroding shareholder value. The equity ratio remains stable, yet there's a noticeable decrease in total assets over recent years, which may impact the company's growth potential.
Cash Flow
50
Neutral
The cash flow statement reveals inconsistent operating cash flows, with the latest TTM showing a slight positive shift. Despite this, free cash flow remains low, reflecting limited cash generation after capital expenditures. The company has managed to slightly improve its cash position compared to the previous year, but challenges in sustaining positive cash flows persist.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue28.43M32.53M40.61M44.34M47.80M53.41M
Gross Profit6.41M7.63M10.15M10.67M12.89M15.10M
EBITDA-1.53M-976.01K-3.50M-2.42M3.81M-1.26M
Net Income-3.02M-2.70M-5.66M-4.73M1.21M-4.32M
Balance Sheet
Total Assets23.45M25.94M30.06M35.43M39.14M27.57M
Cash, Cash Equivalents and Short-Term Investments174.09K483.92K398.80K550.11K6.10M2.32M
Total Debt5.81M6.69M5.65M3.84M5.08M1.01M
Total Liabilities11.43M11.78M13.21M13.73M13.63M7.68M
Stockholders Equity12.02M14.16M16.86M21.70M25.51M19.90M
Cash Flow
Free Cash Flow428.51K-1.85M185.15K-5.20M236.13K2.80M
Operating Cash Flow461.10K-1.61M372.00K-4.88M383.00K3.09M
Investing Cash Flow-32.31K-243.29K-187.00K-319.00K1.53M-292.36K
Financing Cash Flow-799.63K1.84M-332.71K-350.00K2.02M-737.08K

Dynatronics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.09
Price Trends
50DMA
0.09
Positive
100DMA
0.09
Positive
200DMA
0.11
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
52.41
Neutral
STOCH
42.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DYNT, the sentiment is Positive. The current price of 0.09 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.41 is Neutral, neither overbought nor oversold. The STOCH value of 42.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DYNT.

Dynatronics Risk Analysis

Dynatronics disclosed 36 risk factors in its most recent earnings report. Dynatronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Dynatronics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$773.01M-4.48%17.17%72.68%
52
Neutral
$80.94M-9.80%15.16%-39.18%
51
Neutral
$8.02B-0.31-43.38%2.24%22.31%-2.14%
49
Neutral
$934.52K-21.05%-15.39%56.69%
45
Neutral
-48.61%32.18%
44
Neutral
$3.80M-440.77%-7.72%99.54%
37
Underperform
$5.08M-101.49%-19.81%93.32%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DYNT
Dynatronics
0.09
-0.06
-40.00%
NURO
Neurometrix
4.58
0.56
13.93%
NUWE
Nuwellis
4.18
-53.78
-92.79%
AXGN
AxoGen
16.41
2.12
14.84%
XTNT
Xtant Medical Holdings
0.63
0.03
5.00%
HIND
Vyome Holdings
7.30
-935.78
-99.23%

Dynatronics Corporate Events

Executive/Board Changes
Dynatronics Appoints Ryan Staats as New COO
Neutral
May 9, 2025

On May 9, 2025, Dynatronics announced the appointment of Ryan Staats as its new Chief Operating Officer. Mr. Staats, who has been with the company since 2022, previously served as Vice President of Operations and Supply Chain. With over 17 years of experience in the medical device industry, including roles at SeaSpine, Inc. and Integra Lifesciences Holdings Corp., Staats brings extensive expertise in supply chain management and regulatory compliance to his new role.

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: Aug 01, 2025