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Electrocore (ECOR)
:ECOR

Electrocore (ECOR) AI Stock Analysis

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Electrocore

(NASDAQ:ECOR)

Rating:58Neutral
Price Target:
$5.50
▲( 10.66% Upside)
Electrocore shows potential through impressive revenue growth and strategic initiatives like the NeuroMetrix merger. However, significant challenges remain, such as profitability issues, high liabilities, and negative cash flows, impacting the overall financial health and stock attractiveness.
Positive Factors
Acquisition
The acquisition increases the company’s total addressable market and diversifies its portfolio of non-invasive wellness products, which should be additive to growth.
Distribution
ECOR can leverage its established distribution platform to accelerate prescriptions of the Quell technology without added operating expenses.
Growth Opportunities
A premium is justified due to ECOR's substantial growth opportunities across its prescription and over-the-counter business segments, as well as on the potential for the company to expand indications for its flagship gammaCore device.
Negative Factors
Revenue Guidance
Lower-than-expected 2025 revenue guidance introduced, with the company expecting $30M, representing 19.1% y/y growth, below prior consensus and estimates.
Sales Variability
Analyst is lowering estimates and the 12-month price target to $12 from $25 due to quarterly TAC-STIM sales variability and updated outlook on Quell's commercial pathway.
Stock Performance
The stock decline is mostly attributed to the company not issuing forward guidance, which it has done in the past.

Electrocore (ECOR) vs. SPDR S&P 500 ETF (SPY)

Electrocore Business Overview & Revenue Model

Company DescriptionElectrocore, Inc. (ECOR) is a medical technology company focused on developing and commercializing a non-invasive vagus nerve stimulation (nVNS) therapy platform. The company's core products are designed to treat a range of conditions, including primary headache, and are targeted at both the healthcare provider and direct-to-consumer markets. Electrocore's flagship product, gammaCore, is an FDA-cleared, handheld device that provides patients with a non-drug option for managing pain associated with migraines and cluster headaches.
How the Company Makes MoneyElectrocore 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 exhibits strong revenue growth, indicating a robust market demand. However, persistent profitability challenges, negative net margins, and reliance on external financing remain significant concerns, affecting overall financial health.
Income Statement
65
Positive
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
60
Neutral
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
55
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
25.18M16.03M8.59M5.45M3.50M
Gross Profit
21.40M13.23M6.98M4.07M1.76M
EBIT
-12.16M-18.80M-22.87M-20.04M-24.28M
EBITDA
-10.90M-17.76M-22.33M-19.66M-24.18M
Net Income Common Stockholders
-11.89M-18.83M-22.16M-17.22M-23.51M
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.97M10.33M17.71M34.69M22.63M
Total Assets
20.47M16.10M24.76M42.83M31.52M
Total Debt
4.14M626.00K699.00K760.87K2.99M
Net Debt
686.00K-9.71M-17.01M-33.93M-1.25M
Total Liabilities
12.93M8.66M7.67M6.18M7.87M
Stockholders Equity
7.54M7.44M17.09M36.65M23.64M
Cash FlowFree 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-206.00K0.0018.22M-7.96M
Financing Cash Flow
8.44M7.49M0.0025.68M18.95M

Electrocore Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.97
Price Trends
50DMA
6.37
Negative
100DMA
11.19
Negative
200DMA
10.29
Negative
Market Momentum
MACD
-0.60
Negative
RSI
37.06
Neutral
STOCH
35.94
Neutral
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 4.97 is below the 20-day moving average (MA) of 5.83, below the 50-day MA of 6.37, and below the 200-day MA of 10.29, indicating a bearish trend. The MACD of -0.60 indicates Negative momentum. The RSI at 37.06 is Neutral, neither overbought nor oversold. The STOCH value of 35.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ECOR.

Electrocore Risk Analysis

Electrocore disclosed 125 risk factors in its most recent earnings report. Electrocore reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The closing of our acquisition of NURO is subject to customary closing conditions, and there can be no assurance that NURO will meet the closing conditions, and failure to close the transaction may harm our business and cause our stock price to fall. Q4, 2024
2.
We have outsourced certain finance and accounting functions and may outsource other back-office functions, which will make us more dependent upon third parties. Q4, 2024
3.
We may not be able to fully realize the benefits from the NURO Transaction. Q4, 2024

Electrocore Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$102.37M-16.53%-4.15%3.49%
58
Neutral
$36.88M-276.15%41.54%42.59%
58
Neutral
$58.75M-52.88%29.64%
54
Neutral
$58.20M-130.26%-6.27%16.76%
53
Neutral
$5.14B3.03-43.89%2.83%16.75%-0.06%
50
Neutral
$56.96M-267.29%12.78%15.53%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ECOR
Electrocore
4.97
-1.83
-26.91%
APYX
Apyx Medical
1.54
-0.04
-2.53%
ICAD
iCAD
3.73
2.20
143.79%
NVNO
enVVeno Medical
3.35
-1.61
-32.46%
TELA
TELA Bio
1.44
-4.30
-74.91%

Electrocore Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -27.02%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant revenue growth and strategic acquisitions, but also highlighted challenges like increased operating expenses and a decline in the US prescription channel revenue. The positive aspects of revenue growth and new opportunities were tempered by operational and financial challenges.
Q1-2025 Updates
Positive Updates
Revenue Growth
electroCore reported revenue of $6.7 million in Q1 2025, a 23% increase over Q1 2024.
Gross Margin Increase
Gross margins improved to 85% in Q1 2025, compared to 84% in Q1 2024.
Truvaga Brand Expansion
Truvaga net sales were approximately $1.1 million in Q1 2025, a 187% increase from Q1 2024.
Acquisition of NeuroMetrix's Quell Platform
The acquisition aims to accelerate electroCore's mission in the bioelectronic health and wellness sector.
New Distribution Agreement with Spark Biomedical
Agreement to distribute the Sparrow Ascent product line for the treatment of opioid withdrawal symptoms.
Negative Updates
US Prescription Channel Revenue Decline
Revenue was $289,000 in Q1 2025, down 33% from Q1 2024.
Increased Operating Expenses
Total operating expenses in Q1 2025 were $9.5 million, up from $8.4 million in Q1 2024.
Net Loss Increase
GAAP net loss in Q1 2025 was $3.9 million, compared to $3.5 million in Q1 2024.
Company Guidance
During the electroCore First Quarter 2025 Earnings Conference Call, CEO Dan Goldberger provided guidance indicating a promising outlook for the company's growth trajectory. The company reported a 23% year-over-year revenue increase to $6.7 million, driven by a strong performance in the VA channel and the successful expansion of the Truvaga brand, which saw a 187% increase in net sales. Gross margins remained robust at 85%, and the company anticipates maintaining these levels. Goldberger highlighted the strategic acquisition of the Quell product line and the distribution agreement with Spark Biomedical, both of which are expected to diversify revenue streams and enhance market presence. The company is investing in sales and marketing efforts to support these initiatives, with a focus on scaling the Truvaga brand and integrating new products into existing channels. Additionally, the company is targeting a path to profitability with a goal of achieving $9 million in quarterly revenue, a 34% increase from the current quarter. The overall guidance reflects a confident outlook, emphasizing growth in core business lines and the integration of new products to capitalize on emerging opportunities in the bioelectronic technology sector.

Electrocore Corporate Events

Delistings and Listing ChangesM&A Transactions
Electrocore Completes Merger with NeuroMetrix
Positive
May 2, 2025

On May 2, 2025, electroCore, Inc. announced the completion of its merger with NeuroMetrix, Inc., which positions electroCore as a diversified leader in non-invasive health and wellness solutions. The acquisition of NeuroMetrix’s Quell Fibromyalgia Solution expands electroCore’s portfolio of non-invasive bioelectronic therapies, enhances its commercial reach, particularly within the VA Hospital System, and is expected to significantly increase its addressable market for chronic pain and wellness conditions. As a result of the merger, NeuroMetrix became an indirect wholly-owned subsidiary of electroCore, and its shares will be de-listed from the Nasdaq Capital Market.

Executive/Board Changes
Electrocore Board Restructures After Director Resignation
Neutral
Feb 28, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.