HealthWarehouse (HEWA) AI Stock Analysis

• Market Cap: $3.50M
• Dividend Yield: N/A
• Average Volume (3M): 2.08K
• Price to Earnings (P/E): 50.0
• Beta (1Y): -0.32
• Revenue Growth: 112.89%
• EPS Growth: N/A
• Country: US
• Employees: 121
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): >-0.01
• Shares Outstanding: 42,649,000
• 10 Day Avg. Volume: 2,307
• 30 Day Avg. Volume: 2,084
• PEG Ratio: 0.19
• Price to Book (P/B): -1.09
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 7.81
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.36
• Enterprise Value/Ebitda: 4.98
• 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: 50 Neutral
• Price Target: $0.14 ▲(15.00% Upside)

The score is held back primarily by a fragile financial position (negative equity) and a high P/E valuation with limited yield support. Offsetting this, recent operational progress and cash generation are improving, and technicals show a constructive trend with moderate momentum.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand and effective market penetration, suggesting a positive long-term outlook for the company's sales performance.

Cash Flow Improvement

Positive cash flow from operations enhances financial flexibility, allowing the company to reinvest in growth opportunities and manage liabilities more effectively.

Gross Profit Margin

A strong gross profit margin demonstrates effective cost management and pricing power, supporting sustainable profitability in the long term.

Negative Factors

Negative Equity

Negative equity indicates that liabilities exceed assets, posing a risk to financial stability and limiting the company's ability to raise capital or absorb losses.

Profitability Challenges

Ongoing profitability issues could hinder long-term growth and investment capacity, requiring strategic adjustments to improve cost efficiency and revenue generation.

High Liabilities

High liabilities can strain cash flow and limit financial flexibility, impacting the company's ability to invest in growth and manage economic downturns.

HealthWarehouse Business Overview & Revenue Model

Company Description

HealthWarehouse.com, Inc. operates an online and mail order pharmacy. The company markets a range of generic, brand name, and pet prescription medicines, as well as over-the-counter (OTC) medications and products. It sells its products in 50 states and the District of Columbia in the United States to focus on the out-of-pocket prescription drug market. The company sells prescription medications and OTC products to individual consumers over the Internet. HealthWarehouse.com, Inc. is headquartered in Florence, Kentucky.

How the Company Makes Money

HealthWarehouse makes money primarily through the direct sale of prescription medications, over-the-counter drugs, and health-related products via its online platform. The company capitalizes on its ability to offer medications at competitive prices by sourcing directly from wholesalers and manufacturers, bypassing traditional pharmacy distribution channels. Revenue is generated through customer purchases on its website, and HealthWarehouse may also benefit from partnerships with healthcare providers, insurers, or other organizations that direct patients to its services. Additionally, the company's revenue model may include fees for expedited shipping options or subscription-based services for regular medication delivery.

HealthWarehouse Financial Statement Overview

Summary

HealthWarehouse shows strong revenue growth and improving cash flows but is challenged by negative profitability and financial instability due to high liabilities and negative equity. The mixed financial performance suggests potential for recovery if profitability and debt management improve.

Income Statement

HealthWarehouse shows a strong revenue growth trajectory, with a notable increase in revenue from $16.1M in 2021 to $24.8M TTM (Trailing-Twelve-Months). However, the company is facing challenges with profitability, as indicated by negative net profit margins and EBIT margins across the board. The gross profit margin remains healthy at around 51% for TTM, which suggests good control over cost of sales despite the negative net income.

Balance Sheet

The balance sheet reflects financial instability with significant negative stockholders' equity, indicating that liabilities exceed assets. The debt-to-equity ratio is undefined due to negative equity, which poses a risk. Additionally, the return on equity is not meaningful due to negative net income. Despite these challenges, the equity ratio has shown improvement in asset management.

Cash Flow

Cash flows from operating activities have turned positive in TTM, indicating an improving operational efficiency compared to previous years. Free cash flow is also positive, showing a significant recovery from prior periods. However, the ratios of operating and free cash flow to net income are skewed due to negative net income, emphasizing ongoing profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	52.85M	33.61M	20.28M	18.14M	16.14M	17.18M
Gross Profit	17.60M	13.69M	12.17M	11.94M	11.13M	11.35M
EBITDA	1.26M	338.42K	-1.28M	-559.33K	-224.76K	974.45K
Net Income	522.66K	-332.97K	-1.77M	-952.03K	-572.50K	441.78K
Balance Sheet
Total Assets	7.97M	5.05M	3.21M	3.97M	3.62M	3.34M
Cash, Cash Equivalents and Short-Term Investments	3.03M	1.13M	567.96K	1.04M	2.18M	1.82M
Total Debt	3.08M	3.84M	2.09M	3.04M	2.15M	2.14M
Total Liabilities	11.42M	9.08M	7.21M	7.00M	6.41M	6.00M
Stockholders Equity	-3.45M	-4.04M	-4.01M	-3.03M	-2.79M	-2.66M
Cash Flow
Free Cash Flow	2.36M	565.36K	-473.81K	-1.14M	313.64K	240.79K
Operating Cash Flow	2.50M	705.26K	-163.84K	-624.45K	400.51K	250.87K
Investing Cash Flow	-135.14K	-139.90K	-309.97K	-512.85K	-86.86K	-10.08K
Financing Cash Flow	9.00K	0.00	0.00	0.00	0.00	555.95K

HealthWarehouse Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HEWA, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.42 is Neutral, neither overbought nor oversold. The STOCH value of 17.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HEWA.

HealthWarehouse 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%
HEWA	50 Neutral	$3.50M	50.00	―	―	112.89%	―
PETS	50 Neutral	$72.66M	-1.26	-78.89%	―	-24.81%	-5344.15%
LFMD	49 Neutral	$181.47M	-22.03	―	―	30.71%	73.43%
HSCS	46 Neutral	$10.17M	-0.47	-220.42%	―	-41.03%	35.71%
NDRA	42 Neutral	$5.21M	-0.36	-236.34%	―	―	98.86%