RUA Life Sciences (RUA) AI Stock Analysis

• Market Cap: £7.37M
• Dividend Yield: N/A
• Average Volume (3M): 107.45K
• Price to Earnings (P/E): 36.0
• Beta (1Y): 0.49
• Revenue Growth: 56.29%
• EPS Growth: N/A
• Country: UK
• Employees: 40
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Devices
• EPS (TTM): <0.01
• Shares Outstanding: 62,060,272
• 10 Day Avg. Volume: 67,214
• 30 Day Avg. Volume: 107,448
• PEG Ratio: -0.09
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.53
• 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 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 (RUA) is a medical technology company focused on the design, development, and manufacturing of innovative medical devices and materials. Operating primarily in the healthcare and life sciences sectors, RUA specializes in products that utilize advanced polymer technologies to enhance medical procedures and improve patient outcomes. The company's core offerings include biocompatible polymers used in vascular grafts, soft tissue patches, and other implantable medical devices.

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: 12.00
• 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 12 is above the 20-day moving average (MA) of 11.81, above the 50-day MA of 11.89, and below the 200-day MA of 12.01, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 55.46 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
AMS	62 Neutral	£415.48M	58.49	2.95%	1.25%	40.66%	-55.36%
RUA	55 Neutral	£7.37M	35.98	3.55%	―	56.29%	―
Sector *	52 Neutral	$5.15B	3.05	-44.13%	2.84%	16.42%	-0.48%
SCLP	46 Neutral	£95.90M	―	167.16%	―	-100.00%	-23.91%
RENX	37 Underperform	$27.32M	―	425.97%	―	-4.48%	61.09%

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.