HealthWarehouse (HEWA) AI Stock Analysis

• Market Cap: $4.05M
• Dividend Yield: N/A
• Average Volume (3M): 2.08K
• Price to Earnings (P/E): 47.4
• Beta (1Y): -0.45
• 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: 1.17
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 0.27
• Enterprise Value/Ebitda: 3.77
• 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: 46 Neutral
• Price Target: $0.10 ▼(-19.17% Downside)
• Action: Reiterated Date: 01/17/26
• Date: Action: Reiterated 01/17/26

The score is primarily held back by weak financial quality (negative equity despite improved profitability and cash flow) and a demanding valuation (P/E 50 with no dividend support). Technical indicators are also mildly bearish, with the stock trading below key moving averages and a negative MACD.

Positive Factors

Strong trailing‑12-month free cash flow

Sustained positive TTM operating and free cash flow provides a durable internal funding source for working capital and incremental investment in operations. Over months this reduces reliance on external financing and supports operational continuity and reinvestment if cash generation persists.

Return to profitability and positive operating earnings

A return to net profitability and positive operating income signals the core online pharmacy model can be economically viable. If management sustains cost controls and fills, incremental profits can accumulate, improving resilience and enabling strategic choices over the coming quarters.

Material revenue scaling versus prior years

Large historical revenue growth indicates strong customer adoption of the mail‑order pharmacy channel and scaling of fulfillment operations. Continued scale can lower unit costs, strengthen supplier relationships and improve long‑run margin potential if growth stabilizes.

Negative Factors

Negative shareholders' equity

Persistently negative equity is a structural balance‑sheet weakness that limits financial flexibility, increases recapitalization risk and can constrain strategic investments. Over months this elevates refinancing and covenant risk and may force dilutive or costly external funding solutions.

Thin margins and recent revenue decline

Very narrow operating and net margins leave limited buffer against reimbursement, pricing or fulfillment cost pressures. The recent revenue contraction shows susceptibility to demand or competitive shifts; sustained margin expansion is required to cement long‑term viability.

Inconsistent historical cash flow

Historic swings between positive and negative operating/free cash flow indicate earnings volatility and potential need for periodic external capital. Coupled with negative equity, this inconsistency raises the likelihood of financing stress and limits the company's ability to pursue longer‑term initiatives.

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

Mixed fundamentals: improving operations with a return to profitability and strong TTM operating/free cash flow, but the balance sheet is a major constraint due to persistently negative equity, which raises financial flexibility and recapitalization risk. Revenue also showed a slight recent decline and margins remain thin.

Income Statement

TTM (Trailing-Twelve-Months) results show a return to profitability (net income of ~$0.5M) and positive operating earnings, but profitability remains thin (net margin ~1.0%, operating margin ~1.4%). Revenue has scaled materially versus prior years, yet the latest period shows a revenue decline (about -1.1%), and margins are well below the stronger gross margin levels seen earlier in the history—suggesting pricing/fulfillment pressure as the business grew.

Balance Sheet

The balance sheet is the key weakness: stockholders’ equity is negative in TTM (Trailing-Twelve-Months) and across the annual periods provided, which limits financial flexibility and raises recapitalization risk. Debt is moderate in absolute dollars (~$3.1M TTM) versus assets (~$8.0M), but negative equity makes leverage ratios less meaningful and highlights a constrained capital structure despite the recent improvement in earnings.

Cash Flow

Cash generation is a relative bright spot. TTM (Trailing-Twelve-Months) operating cash flow is strong (~$2.5M) with free cash flow of ~$2.36M, and free cash flow growth is sharply higher versus the prior annual period. Free cash flow is roughly in line with reported net income, supporting earnings quality; however, cash flow has been inconsistent historically (including negative operating/free cash flow in 2022–2023).

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: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.10, above the 50-day MA of 0.11, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, 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%
LFMD	49 Neutral	$142.00M	-16.95	―	―	30.71%	73.43%
HEWA	46 Neutral	$4.05M	47.39	―	―	112.89%	―
HSCS	46 Neutral	$9.43M	-0.43	-220.42%	―	-41.03%	35.71%
NDRA	42 Neutral	$4.02M	-0.29	-236.34%	―	―	98.86%
PETS	41 Neutral	$65.91M	-0.96	-100.61%	―	-24.81%	-5344.15%