Electrocore (ECOR) AI Stock Analysis

• Market Cap: $46.40M
• Dividend Yield: N/A
• Average Volume (3M): 206.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: 57.09%
• EPS Growth: 52.18%
• Country: US
• Employees: 73
• Sector: Healthcare
• Sector Strength: 72
• Industry: Medical - Devices
• EPS (TTM): -1.70
• Shares Outstanding: 7,193,092
• 10 Day Avg. Volume: 192,395
• 30 Day Avg. Volume: 206,454
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.29
• Price to Cash Flow (P/CF): -11.50
• 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: $25.33
• Price Target Upside: 278.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Electrocore's strong revenue growth and strategic acquisitions are positive, but significant challenges in profitability and technical indicators suggest caution. The stock's valuation is unattractive due to negative earnings, and technical analysis shows bearish trends. Despite positive earnings call sentiment, the company's financial health needs improvement to boost investor confidence.

Positive Factors

Acquisition Benefits

The acquisition of NeuroMetrix is expected to be accretive to both the top and bottom line for ECOR, increasing the company’s total addressable market and diversifying its portfolio of non-invasive wellness products.

Financial Health

ECOR has no debt and has enough capital to sustain current operations, with cash and marketable securities of $12.2M.

Revenue Growth

ECOR's strong performance in 4Q24 marked its ninth consecutive quarter of record revenue, reflecting deeper penetration within the VA/DoD channel and broader adoption of its Truvaga line of OTC wellness devices.

Negative Factors

Lack of Guidance

The stock decline is mostly attributed to the company not issuing forward guidance, which it has done in the past.

Supply Chain Risks

There is potential for the VA/DoD channel to soften due to uncertainties related to possible reductions of supply chain staff in the VA system.

Electrocore Business Overview & Revenue Model

Company Description

electroCore, Inc., a commercial stage medical device company, engages in the development and commercialization of a range of non-invasive vagus nerve stimulation (nVNS) therapies. The company is developing gammaCore, a prescription-only nVNS therapy for the acute treatment of pain associated with migraine and episodic cluster headache in adults. Its lead product is gammaCore Sapphire, a rechargeable and reloadable handheld device for regular or intermittent use over many years. The company was incorporated in 2005 and is headquartered in Rockaway, New Jersey.

How the Company Makes Money

Electrocore generates revenue primarily through the sale of its gammaCore device and related accessories. The company targets revenue streams from both healthcare professionals and consumers. It sells its products directly to healthcare providers, who then offer them to patients, as well as directly to consumers through various distribution channels. Electrocore also engages in partnerships and collaborations with healthcare organizations to expand its market reach and product adoption. Reimbursement from insurance coverage and expanding indications for the use of its nVNS therapy are significant factors that contribute to its earnings.

Electrocore Financial Statement Overview

Summary

Electrocore has demonstrated impressive revenue growth, but profitability remains a challenge with negative net income and EBIT margins. The balance sheet shows a high level of liabilities and the company relies on external financing due to negative cash flows.

Income Statement

Electrocore has shown a consistent growth in revenue over the years, with a notable increase from $2.39 million in 2019 to $25.18 million in 2024. However, the company is still facing significant profitability challenges, as evidenced by negative net income and EBIT margins across the years. Despite the revenue growth, the company has not yet achieved positive net profit margins or EBIT margins, indicating that cost control and operational efficiency are areas for improvement.

Balance Sheet

The company's balance sheet reflects a relatively high level of liabilities compared to its equity, with a debt-to-equity ratio of 0.55 in 2024. Stockholders' equity has remained relatively stable from 2023 to 2024, but the equity ratio has decreased due to a rise in total liabilities. The company maintains a reasonable cash position, which provides some liquidity cushion. However, the consistent negative net income impacts the overall return on equity.

Cash Flow

Electrocore's cash flow situation shows significant negative operating cash flows, indicating that the company has not yet reached a sustainable cash-generating position from its core operations. Free cash flow has improved slightly but remains negative, suggesting that the company is still reliant on external financing to support its operations and growth. The operating cash flow to net income ratio is poor due to persistent negative earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.18M	16.03M	8.59M	5.45M	3.50M
	Gross Profit
21.40M	13.23M	6.98M	4.07M	1.76M
	EBIT
-12.16M	-18.80M	-22.87M	-20.04M	-24.28M
	EBITDA
-12.16M	-17.76M	-22.33M	-19.66M	-24.18M
	Net Income Common Stockholders
-11.89M	-18.83M	-22.16M	-17.22M	-23.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.97M	10.33M	17.71M	34.69M	22.63M
	Total Assets
20.47M	16.10M	24.76M	42.83M	31.52M
	Total Debt
4.14M	626.00K	699.00K	760.87K	2.99M
	Net Debt
686.00K	-9.71M	-17.01M	-33.93M	-1.25M
	Total Liabilities
12.93M	8.66M	7.67M	6.18M	7.87M
	Stockholders Equity
7.54M	7.44M	17.09M	36.65M	23.64M
Cash Flow		Free Cash Flow
-6.95M	-14.87M	-16.64M	-13.63M	-20.10M
	Operating Cash Flow
-6.95M	-14.67M	-16.64M	-13.63M	-20.10M
	Investing Cash Flow
-8.52M	-206.00K	0.00	18.22M	-7.96M
	Financing Cash Flow
8.44M	7.49M	0.00	25.68M	18.95M

Electrocore Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECOR, the sentiment is Negative. The current price of 6.69 is below the 20-day moving average (MA) of 9.92, below the 50-day MA of 13.86, and below the 200-day MA of 10.33, indicating a bearish trend. The MACD of -2.28 indicates Positive momentum. The RSI at 18.99 is Positive, neither overbought nor oversold. The STOCH value of 10.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ECOR.

Electrocore Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZBH	73 Outperform	$22.35B	25.33	7.24%	0.85%	3.84%	-9.29%
LIVN	56 Neutral	$2.13B	34.08	4.87%	―	8.33%	256.54%
ECOR	54 Neutral	$46.40M	―	-158.63%	―	57.09%	52.18%
EOLS	53 Neutral	$766.22M	―	-913.07%	―	31.76%	24.85%
NURO	50 Neutral	$9.12M	―	-45.38%	―	-48.61%	32.18%
Sector *	48 Neutral	$6.84B	1.02	-53.11%	2.50%	16.84%	0.92%
STIM	43 Neutral	$248.12M	―	-139.60%	―	4.96%	-29.29%

Electrocore Corporate Events

Electrocore Board Restructures After Director Resignation

On February 24, 2025, Charles S. Theofilos, M.D., resigned from his roles at Electrocore, Inc., including his position as a Class III director and memberships in the Compensation and Nominating and Governance Committees. Following his resignation, the Board reduced its size from eight to seven members, effective February 28, 2025.