Electromedical Technologies (EMED) AI Stock Analysis

• Market Cap: $746.46K
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): 1.74
• Revenue Growth: -94.86%
• EPS Growth: 90.63%
• Country: US
• Employees: 6
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): >-0.01
• Shares Outstanding: 3,732,294,200
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: <0.01
• Price to Book (P/B): -0.07
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -2.31
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 19.72
• Enterprise Value/Gross Profit: -42.41
• Enterprise Value/Ebitda: -1.60
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 34 Underperform
• Price Target: ―

The overall score for EMED reflects significant financial challenges, characterized by negative profitability and high leverage. Although there are no significant insights from technical analysis or earnings calls, the low valuation score due to ongoing losses and lack of dividends further impacts the stock's attractiveness. Improvements in cash flow management are noted but are insufficient to mitigate the broader financial instability.

Positive Factors

Revenue Model

The diverse revenue model with direct sales, leasing, and subscriptions provides multiple income streams, enhancing financial resilience and adaptability to market changes.

Strategic Partnerships

Partnerships expand market reach and product accessibility, potentially driving long-term growth by increasing brand visibility and customer base.

Cash Flow Improvement

The significant improvement in free cash flow indicates better cash management, which can support operations and investments in growth initiatives.

Negative Factors

Negative Profitability

The substantial negative profit margin reflects ongoing operational inefficiencies, which could hinder the company's ability to achieve sustainable profitability.

High Leverage

High leverage and negative equity pose solvency risks, limiting financial flexibility and increasing vulnerability to economic downturns.

Negative Operating Cash Flow

Persistent negative operating cash flow indicates ongoing challenges in generating sufficient cash from core operations, impacting long-term financial health.

Electromedical Technologies Business Overview & Revenue Model

Company Description

Electromedical Technologies, Inc., a bioelectronics manufacturing and marketing company, provides medical devices for pain management in the United States. It offers WellnessPro Plus, a bioelectronics therapy prescription device that is used by consumers and health care professionals to relieve chronic and acute pain. The company was founded in 2002 and is headquartered in Scottsdale, Arizona.

How the Company Makes Money

Electromedical Technologies generates revenue primarily through the sale of its bioelectronic devices directly to consumers, healthcare providers, and through distribution partnerships. The company's revenue model includes direct sales, leasing options, and subscription-based models for device usage and maintenance. Key revenue streams are derived from product sales, recurring service fees, and potential licensing agreements for their technology. Strategic partnerships with healthcare organizations and distribution networks further contribute to their earnings by expanding market reach and enhancing product accessibility.

Electromedical Technologies Financial Statement Overview

Summary

Electromedical Technologies is facing substantial financial difficulties. Despite a modest revenue increase, the company is struggling with profitability and operational efficiency, evident in its negative margins. The balance sheet is weak with high leverage and negative equity, posing solvency risks. Cash flow improvements are a positive sign, but negative operating cash flow highlights persistent cash management challenges. The company must address these issues to achieve financial stability and growth.

Income Statement

The company has seen some revenue growth from 2022 to 2023, with a 17.33% increase. However, it continues to incur significant net losses, with a net profit margin of -195.84% in 2023. The lack of gross profit data and negative EBIT and EBITDA margins (-120.65% and -71.31% respectively) indicate ongoing operational and profitability challenges.

Balance Sheet

The balance sheet reveals a concerning financial position with negative stockholders' equity, indicating insolvency risk. The debt-to-equity ratio is not calculable due to negative equity, and return on equity is also negative at -80.71%. The equity ratio is -437.30%, reflecting a heavily leveraged and financially unstable structure.

Cash Flow

The company improved its free cash flow from -$773,337 in 2022 to $327,490 in 2023, a significant turnaround. However, operating cash flow remains negative at -$1,417,393, and both operating and free cash flow to net income ratios are unfavorable, indicating ongoing cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.40K	588.37K	1.35M	1.15M	907.36K	737.96K
Gross Profit	-22.04K	381.20K	1.05M	888.64K	708.13K	543.57K
EBITDA	-583.65K	-1.01M	-1.72M	-2.66M	-5.14M	-3.08M
Net Income	-1.01M	-1.29M	-2.64M	-3.47M	-8.48M	-3.87M
Balance Sheet
Total Assets	621.40K	529.22K	748.38K	1.35M	1.40M	1.42M
Cash, Cash Equivalents and Short-Term Investments	14.87K	10.18K	87.70K	368.43K	383.17K	264.91K
Total Debt	778.75K	1.57M	1.70M	1.98M	1.57M	1.37M
Total Liabilities	4.38M	4.37M	3.62M	3.57M	2.12M	2.74M
Stockholders Equity	-3.76M	-3.84M	-2.87M	-2.22M	-722.50K	-1.32M
Cash Flow
Free Cash Flow	-309.14K	-112.32K	-1.57M	-773.34K	-1.19M	-1.34M
Operating Cash Flow	-309.14K	-112.32K	-1.42M	-773.34K	-1.19M	-1.34M
Investing Cash Flow	0.00	0.00	1.74M	0.00	0.00	0.00
Financing Cash Flow	289.21K	34.79K	-608.21K	758.59K	1.31M	1.60M

Electromedical Technologies 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%
MYNZ	48 Neutral	$10.78M	―	―	―	―	―
BJDX	46 Neutral	$1.64M	-0.03	-126.20%	―	―	97.70%
EMED	34 Underperform	$746.46K	―	―	―	-94.86%	90.63%