Surgical Innovations (SUN) AI Stock Analysis

• Market Cap: £5.13M
• Dividend Yield: N/A
• Average Volume (3M): 179.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -4.98%
• EPS Growth: -114.29%
• Country: UK
• Employees: 80
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.00
• Shares Outstanding: 932,816,160
• 10 Day Avg. Volume: 43,249
• 30 Day Avg. Volume: 179,777
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -12.54
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: 0.57p ▲(27.11% Upside)

Surgical Innovations' overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's ongoing financial challenges, including declining revenue and negative profitability, are significant concerns. However, recent positive corporate events, such as strategic board changes and incentive plans, provide some optimism for future improvements.

Positive Factors

Innovative Product Portfolio

The company's focus on innovative surgical technologies, such as robotic-assisted solutions, positions it well in the growing minimally invasive surgery market, potentially driving long-term demand and market share.

Strategic Partnerships

Strategic partnerships for co-development and licensing can enhance product offerings and open new revenue streams, supporting sustainable growth and competitive positioning in the medical devices industry.

Stable Balance Sheet

A stable balance sheet with manageable leverage levels provides financial flexibility, allowing the company to invest in growth opportunities and weather economic uncertainties.

Negative Factors

Declining Revenue

Declining revenue reflects challenges in market penetration and sales effectiveness, which could hinder long-term growth prospects and competitive positioning in the medical devices sector.

Negative Profit Margins

Worsening profit margins indicate operational inefficiencies and cost management issues, which can impact the company's ability to generate sustainable profits and invest in future growth.

Cash Flow Challenges

Negative cash flows highlight difficulties in generating sufficient cash from operations, potentially limiting the company's capacity to fund investments, pay down debt, and support ongoing operations.

Surgical Innovations Business Overview & Revenue Model

Company Description

Surgical Innovations Group plc, together with its subsidiaries, designs, develops, manufactures, and sells devices for use in minimally invasive surgery (SI) and precision engineering markets in the United Kingdom, Europe, the Asia Pacific, the United States, and internationally. It operates through three segments: SI Brand, Original Equipment Manufacturer (OEM), and Distribution. The company's SI Brand segment researches, develops, manufactures, and distributes SI branded minimally invasive devices. This segment also offers YelloPort Elite and YelloPort +plus laparoscopic port access systems; LogiRange resposable laparoscopic instrument systems; FastClamp laparoscopic clamping systems; and QuickRange single use laparoscopic instrumentation. Its OEM segment researches, develops, manufactures, and distributes minimally invasive devices for third party medical device companies through own label or co-branding. This segment also provides design and development solutions for producing a final device; and researches, develops, manufactures, and sells minimally invasive technology products for precision engineering applications. The company's Distribution segment distributes medical products through Elemental Healthcare Ltd. It also designs and manufactures autologous blood products. It sells its products through independent healthcare distributors, as well as its own label products through OEM relationships. Surgical Innovations Group plc was incorporated in 1988 and is based in Leeds, the United Kingdom.

How the Company Makes Money

Surgical Innovations generates revenue through the sale of its surgical instruments and devices to hospitals, surgical centers, and medical professionals. The company employs a multi-faceted revenue model that includes direct sales, distribution agreements, and partnerships with healthcare providers. Key revenue streams are derived from product sales, recurring revenue from instrument servicing and maintenance, and royalties from licensing agreements related to proprietary technologies. Additionally, SUN benefits from strategic partnerships with medical device distributors that enhance market reach and facilitate entry into new geographic regions, thus contributing to overall earnings.

Surgical Innovations Financial Statement Overview

Summary

Surgical Innovations is facing financial challenges with declining revenue, negative profitability, and cash flow issues. While leverage is under control, operational inefficiencies and lack of profitability are concerning. The company needs to focus on improving its operational performance and cash generation capabilities to enhance its financial health.

Income Statement

The company's income statement shows declining revenue and profitability over the past year. Gross Profit Margin remained stable at around 28.8%, but Net Profit Margin deteriorated from -4.2% to -16.3%. Revenue decreased by 0.6%, indicating challenges in maintaining growth. EBIT and EBITDA margins are negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable but shows some weaknesses. The Debt-to-Equity Ratio improved to 0.15, indicating manageable leverage levels. However, the Equity Ratio decreased slightly to 69.8%. Return on Equity (ROE) is negative due to net losses, highlighting profitability issues.

Cash Flow

Cash flow analysis reveals challenges in cash generation. Operating Cash Flow turned negative, and Free Cash Flow decreased further into negative territory. The Operating Cash Flow to Net Income Ratio is weak due to negative earnings, and Free Cash Flow to Net Income is negative, indicating cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.91M	11.95M	12.01M	11.34M	9.13M	6.33M
Gross Profit	3.32M	3.44M	3.45M	3.92M	3.13M	1.27M
EBITDA	-771.00K	-99.00K	161.00K	628.00K	247.00K	-2.20M
Net Income	-1.44M	-1.94M	-509.00K	264.00K	-456.00K	-3.28M
Balance Sheet
Total Assets	11.50M	12.24M	14.32M	15.60M	15.72M	16.34M
Cash, Cash Equivalents and Short-Term Investments	-461.00K	195.00K	1.21M	2.20M	3.64M	5.28M
Total Debt	938.00K	1.24M	1.66M	2.16M	2.79M	3.27M
Total Liabilities	2.94M	3.70M	3.84M	4.63M	5.05M	5.25M
Stockholders Equity	8.56M	8.54M	10.48M	10.96M	10.66M	11.09M
Cash Flow
Free Cash Flow	159.00K	-409.00K	-288.00K	-592.00K	-1.09M	887.00K
Operating Cash Flow	214.00K	-74.00K	400.00K	486.00K	-433.00K	1.04M
Investing Cash Flow	-259.00K	-335.00K	-688.00K	-1.08M	-657.00K	-155.00K
Financing Cash Flow	-650.00K	-626.00K	-672.00K	-935.00K	-532.00K	3.15M

Surgical Innovations Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SUN, the sentiment is Negative. The current price of 0.45 is below the 20-day moving average (MA) of 0.56, below the 50-day MA of 0.57, and below the 200-day MA of 0.63, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at <0.01 is Positive, neither overbought nor oversold. The STOCH value of 52.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SUN.

Surgical Innovations Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RUA	62 Neutral	£7.45M	1,225.00	0.08%	―	87.72%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SUN	49 Neutral	£5.13M	-3.00	-15.46%	―	-4.98%	-114.29%
CREO	49 Neutral	£41.87M	-1.70	―	―	―	―
TRX	49 Neutral	£5.16M	-4.90	-5.41%	―	-20.31%	-19.35%
IHC	40 Underperform	£14.12M	-1.23	-51.63%	―	31.78%	10.27%

Surgical Innovations Corporate Events

Surgical Innovations Launches New Long Term Incentive Plan

Surgical Innovations Group plc has introduced a new Long Term Incentive Plan (2025 LTIP) to align the interests of executive directors and employees with shareholders. The plan grants nil cost share options, contingent on performance criteria such as revenue and EBIT growth, and shareholder returns, to be achieved over three years. This initiative reflects the company’s commitment to incentivizing key personnel and enhancing shareholder value.

Surgical Innovations Announces Strategic Board Changes

Surgical Innovations Group plc has announced significant changes to its Board of Directors, appointing Roy Davis as Non-Executive Chair, alongside Andrew Boteler and Duncan Soukup as Independent Non-Executive Director and Non-Executive Director, respectively. This reshuffle comes as Jonathan Glenn and Keyvan Djamarani step down from their roles. The new appointments are expected to drive value creation for shareholders, with Roy Davis bringing extensive experience from various industries, including medtech and diagnostics. The changes are anticipated to strengthen the company’s strategic direction and enhance its market positioning in the minimally invasive surgery sector.

Surgical Innovations Reports Stable H1 2025 Results Amid European Growth

Surgical Innovations Group plc reported its interim results for the first half of 2025, showing stable revenues of £6.15m compared to the previous year. The company achieved a gross profit margin of 31.3% and an adjusted EBITDA profit of £0.37m, reflecting improvements from cost-reduction initiatives. The company experienced significant growth in Europe, driven by its sustainability-focused products, despite facing challenges in the US and UK markets. Surgical Innovations continues to focus on product innovation and market expansion, with expectations of sustained growth and improved margins into 2026.

Surgical Innovations to Announce Interim Results with Investor Briefing

Surgical Innovations Group plc announced the release of its interim results for the first half of 2025, scheduled for 29 September 2025. The company will hold a live presentation for investors, led by CEO David Marsh and CFO Brent Greetham, to discuss these results. This event is accessible to all current and potential shareholders, highlighting the company’s commitment to transparency and engagement with its stakeholders.