RUA Life Sciences (RUA) AI Stock Analysis

• Market Cap: £7.14M
• Dividend Yield: N/A
• Average Volume (3M): 91.89K
• Price to Earnings (P/E): 34.8
• Beta (1Y): 0.49
• Revenue Growth: 56.29%
• EPS Growth: N/A
• Country: UK
• Employees: 40
• Sector: Healthcare
• Sector Strength: 64
• Industry: Medical - Devices
• EPS (TTM): <0.01
• Shares Outstanding: 62,060,272
• 10 Day Avg. Volume: 63,325
• 30 Day Avg. Volume: 91,886
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.51
• Price to Cash Flow (P/CF): -4.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

RUA Life Sciences faces significant operational challenges with negative profitability and cash flow, despite a strong balance sheet. Technical indicators suggest a bearish trend, while the high P/E ratio indicates potential overvaluation. However, positive corporate developments, such as the CEO's confidence and subsidiary turnaround, offer some optimistic signals for future growth.

RUA Life Sciences Business Overview & Revenue Model

Company Description

RUA Life Sciences plc, together with its subsidiaries, provides polymers, services, and products to the medical device industry in Europe, the United States, and internationally. The company operates as a contract developer and manufacturer of medical devices; and licensor of Elast-Eon and ECSil implantable co-polymers that are used in cardiology and urological applications, including pacing leads, cardiac cannulae, and stent devices, as well as reaction injection molding technology for use in high-precision medical device components. It also develops bore polymer sealed grafts and soft tissue patches; and tri leaflet polymeric heart valves. The company was formerly known as AorTech International plc and changed its name to RUA Life Sciences plc in June 2020. RUA Life Sciences plc was incorporated in 1996 and is headquartered in Irvine, the United Kingdom.

How the Company Makes Money

RUA Life Sciences generates revenue through the sale of its proprietary medical devices and materials, which are primarily based on their unique biocompatible polymer technologies. The company partners with healthcare providers, medical device manufacturers, and distributors to reach end-users such as hospitals and clinics. Revenue streams include direct sales of products, licensing agreements for their proprietary technology, and collaborative partnerships that may involve co-development or manufacturing agreements. The company's earnings are influenced by its ability to innovate and maintain strong relationships within the medical device supply chain, as well as regulatory approvals for its products in various markets.

RUA Life Sciences Financial Statement Overview

Summary

RUA Life Sciences shows modest revenue growth with improved gross margins, but persistent negative EBIT and cash flows highlight significant operational challenges. The balance sheet remains strong with low leverage, providing financial stability despite ongoing profitability issues.

Income Statement

RUA Life Sciences has shown moderate revenue growth, with a 0.55% increase from 2023 to 2024. However, profitability remains a concern, as evidenced by persistent negative EBIT and net profit margins. Gross profit margins have improved to 78.33% for 2024, indicating cost management; however, the overall financial performance is weakened by substantial operating losses.

Balance Sheet

The balance sheet shows a stable financial position with a strong equity base and low debt levels. The debt-to-equity ratio is low at 0.05, indicating minimal leverage. However, the company has not been able to turn equity into positive returns, as reflected by negative ROE. The equity ratio stands at 87.93%, demonstrating a solid equity position.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows. The operating cash flow to net income ratio is less than optimal, highlighting cash flow issues. Free cash flow has improved slightly from the previous year but remains negative, indicating ongoing liquidity pressures.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
2.19M	2.18M	1.63M	1.53M	489.00K
	Gross Profit
1.72M	1.43M	1.04M	980.00K	489.00K
	EBIT
-1.94M	-2.39M	-2.43M	-1.80M	-991.00K
	EBITDA
-1.57M	-1.95M	-2.04M	-1.28M	-703.00K
	Net Income Common Stockholders
-1.44M	-2.00M	-2.07M	-1.45M	-816.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.93M	1.48M	2.96M	6.29M	1.98M
	Total Assets
8.17M	5.66M	7.63M	10.15M	2.49M
	Total Debt
389.00K	475.00K	344.00K	410.00K	0.00
	Net Debt
-3.54M	-1.01M	-2.62M	-5.88M	-1.98M
	Total Liabilities
987.00K	864.00K	868.00K	1.65M	219.00K
	Stockholders Equity
7.18M	4.68M	6.58M	8.51M	2.27M
Cash Flow		Free Cash Flow
-1.38M	-1.62M	-3.27M	-2.04M	-436.00K
	Operating Cash Flow
-1.33M	-1.17M	-2.36M	-1.42M	-431.00K
	Investing Cash Flow
-85.00K	-449.00K	-904.00K	-943.00K	-5.00K
	Financing Cash Flow
3.89M	132.00K	-66.00K	6.68M	0.00

RUA Life Sciences Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RUA, the sentiment is Negative. The current price of 11.5 is below the 20-day moving average (MA) of 11.57, below the 50-day MA of 12.27, and below the 200-day MA of 11.92, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 40.58 is Neutral, neither overbought nor oversold. The STOCH value of 67.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RUA.

RUA Life Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.20B	3.18	-40.80%	2.96%	17.66%	1.94%
RUA	49 Neutral	£7.14M	34.85	3.55%	―	56.29%	―
SCLP	46 Neutral	£120.79M	―	167.16%	―	-100.00%	-23.91%

RUA Life Sciences Corporate Events

RUA Life Sciences CEO Increases Stake in Company

RUA Life Sciences announced that its CEO, Bill Brown, purchased 65,000 ordinary shares in the company, increasing his stake to approximately 1.46% of the company’s issued ordinary share capital. This transaction reflects the CEO’s confidence in the company’s future prospects and could positively influence stakeholder perceptions, reinforcing the company’s market position.

RUA Life Sciences CEO Increases Shareholding

Bill Brown, CEO of RUA Life Sciences, has increased his stake in the company by purchasing 65,000 ordinary shares, bringing his total interest to approximately 1.46% of the company’s issued share capital. This move reflects confidence in the company’s direction and potential growth, potentially impacting investor sentiment and market perception of RUA Life Sciences.

RUA Life Sciences Reports Turnaround in French Subsidiary’s Financial Performance

RUA Life Sciences has reported an update on its French subsidiary, ABISS, which was acquired in September 2024. Despite initial supply chain challenges, ABISS achieved a significant turnaround in financial performance, recording revenues of €2.3 million and a profit before tax of €46k for the year ending December 2024. This represents a substantial improvement from the previous year’s loss and positions ABISS for further growth, particularly in the European market for its Cyrene product range. The acquisition bolsters RUA’s strategic opportunities in developing its group capabilities.