RUA Life Sciences (RUA) AI Stock Analysis

• Market Cap: £7.06M
• Dividend Yield: N/A
• Average Volume (3M): 124.55K
• Price to Earnings (P/E): 1150.0
• Beta (1Y): 0.25
• Revenue Growth: 56.29%
• EPS Growth: N/A
• Country: UK
• Employees: 40
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Devices
• EPS (TTM): -0.01
• Shares Outstanding: 62,060,272
• 10 Day Avg. Volume: 89,690
• 30 Day Avg. Volume: 124,553
• PEG Ratio: 1.83
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.04
• 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

• Rating: 55 Neutral
• Price Target: ―

RUA Life Sciences has a challenging financial performance with ongoing profitability and cash flow issues despite revenue growth. The technical analysis indicates bearish trends, and the valuation suggests overvaluation. However, positive corporate events, including strategic expansion and leadership confidence, provide potential for future growth, balancing some of the financial and technical risks.

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 moderate revenue growth, but struggles with profitability and cash flow. The balance sheet is strong with low leverage, providing financial stability. However, persistent operating losses and negative cash flows are major concerns.

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	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	2.92M	2.19M	2.18M	1.63M	1.53M	489.00K
Gross Profit	2.19M	1.72M	1.43M	1.04M	980.00K	489.00K
EBITDA	445.00K	-1.57M	-1.95M	-2.04M	-1.28M	-703.00K
Net Income	206.00K	-1.44M	-2.00M	-2.07M	-1.45M	-816.00K
Balance Sheet
Total Assets	9.81M	8.17M	5.66M	7.63M	10.15M	2.49M
Cash, Cash Equivalents and Short-Term Investments	3.78M	3.93M	1.48M	2.96M	6.29M	1.98M
Total Debt	1.18M	389.00K	475.00K	344.00K	410.00K	0.00
Total Liabilities	1.82M	987.00K	864.00K	868.00K	1.65M	219.00K
Stockholders Equity	7.86M	7.18M	4.68M	6.58M	8.51M	2.27M
Cash Flow
Free Cash Flow	-712.00K	-1.38M	-1.62M	-3.27M	-2.04M	-436.00K
Operating Cash Flow	-664.00K	-1.33M	-1.17M	-2.36M	-1.42M	-431.00K
Investing Cash Flow	151.00K	-85.00K	-449.00K	-904.00K	-943.00K	-5.00K
Financing Cash Flow	3.85M	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: Positive
• RSI: Neutral
• STOCH: Positive

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 12.47, below the 50-day MA of 12.05, and below the 200-day MA of 12.18, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 33.45 is Neutral, neither overbought nor oversold. The STOCH value of 18.75 is Positive, 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
SUN	60 Neutral	£6.53M	―	-20.43%	―	-0.57%	-320.00%
RUA	55 Neutral	£7.06M	1,150.00	0.08%	―	56.29%	―
Sector *	52 Neutral	$7.59B	0.30	-61.86%	2.27%	16.72%	1.10%
MHC		£5.19M	―	-22.78%	―	―	―
OBD	44 Neutral	£4.99M	―	-333.59%	―	45.22%	55.71%
IHC	42 Neutral	£19.73M	―	-65.64%	―	1.65%	-102.83%
HEMO		£6.66M	―	-302.41%	―	―	―

RUA Life Sciences Corporate Events

RUA Life Sciences Reports Robust Revenue Growth and Strategic Expansion

RUA Life Sciences has reported significant revenue growth for the fiscal year ending March 31, 2025, with an 86% increase to £4.1 million, driven by strong underlying business performance and the acquisition of the Abiss Group. The company has successfully reduced costs and improved cash control, resulting in an expected EBITDA of £0.3 million, a turnaround from the previous year’s loss. The company is focusing on expanding its contract manufacturing business and exploring new opportunities with its unique IP, particularly in combining textiles expertise with Elast-Eon. The acquisition of Abiss is expected to be beneficial despite an initial period of reduced orders due to excess inventory. Structural changes in the market are anticipated to positively impact Abiss, and RUA is exploring new licensing opportunities for Elast-Eon in various therapeutic areas.

Spark’s Take on GB:RUA Stock

According to Spark, TipRanks’ AI Analyst, GB:RUA is a Neutral.

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.

To see Spark’s full report on GB:RUA stock, click here.