Cue Health (HLTHQ) AI Stock Analysis

• Market Cap: $159.00
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): 92.33
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 726
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -2.13
• Shares Outstanding: 159,091,810
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -0.22
• 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: 38 Underperform
• Price Target: ―

Cue Health's overall stock score reflects significant financial struggles, a lack of technical analysis data, and challenging valuation metrics. The strong equity base offers some financial stability, but persistent negative profitability and cash flow issues present substantial risks.

Positive Factors

Strong Equity Base

A strong equity base provides financial stability and can help the company weather financial challenges, supporting long-term resilience.

Revenue Model Diversification

Diversified revenue streams from products, partnerships, and subscriptions can enhance revenue stability and growth potential over time.

Innovative Product Offering

Innovative diagnostic solutions can drive market differentiation and customer loyalty, supporting long-term competitive advantage.

Negative Factors

Significant Revenue Decline

A sharp revenue decline indicates potential market challenges and can impact the company's ability to invest in growth and innovation.

Negative Profit Margins

Deeply negative profit margins highlight operational inefficiencies and can strain financial resources, affecting long-term sustainability.

Cash Flow Challenges

Negative cash flow ratios indicate liquidity issues, which can limit the company's ability to fund operations and growth initiatives.

Cue Health Business Overview & Revenue Model

Company Description

Cue Health Inc. operates as a healthcare technology company. It provides the Cue Health platform that offers individuals and healthcare providers convenient and personalized access to lab-quality diagnostic tests at home and at the point-of-care, as well as on-demand telehealth consultations and treatment options for a range of health and wellness needs. It offers Cue Integrated Care platform comprising hardware, software, and diagnostic components, such as Cue Health Monitoring System consisting of Cue Reader, a portable and reusable reader, Cue Cartridge, a single-use test cartridge, and Cue Wand, a sample collection wand; Cue Data and Innovation Layer, a solution with cloud-based data and analytics capability; Cue Virtual Care Delivery Apps, which include Cue Health App and Cue Enterprise Dashboard; and Cue Ecosystem Integrations and Apps, including integration with electronic medical record system, pharmacies and last-mile delivery, clinician networks, and laboratories. The company also provides COVID-19 testing kits. The company was formerly known as Cue Inc and changed its name to Cue Health Inc. in December 2017. Cue Health Inc. was incorporated in 2010 and is headquartered in San Diego, California. On May 28, 2024, Cue Health Inc., along with its affiliates, filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Delaware.

How the Company Makes Money

Cue Health generates revenue through the sale of its diagnostic products and services. The company's primary revenue stream comes from the sales of its Cue Health Monitoring System and related test cartridges, which are designed to detect various health indicators and conditions. Additionally, Cue Health may engage in partnerships with healthcare providers, enterprises, and government entities to expand its diagnostic offerings and reach broader markets. The company might also derive income from subscription-based models for its digital health platform, offering personalized health insights and data management solutions.

Cue Health Financial Statement Overview

Summary

Cue Health is facing severe financial challenges with a significant revenue decline, deeply negative profit margins, and cash flow issues. Despite these challenges, the company maintains a strong equity ratio, providing some financial stability.

Income Statement

Cue Health has experienced significant revenue decline with a 85.3% decrease in 2023 compared to 2022. The company is operating at a loss with a negative gross profit margin of -79.1% and a net profit margin of -526.5%, indicating severe profitability challenges. EBIT and EBITDA margins are also deeply negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows high debt levels with a debt-to-equity ratio of 0.19, which is manageable but reflective of some financial risk. Stockholders' equity has decreased, indicating financial strain. However, the equity ratio remains relatively strong at 73.6%, suggesting the company maintains a strong equity base relative to its total assets.

Cash Flow

Free cash flow has improved slightly with a 10.2% growth rate from 2022 to 2023, but the operating cash flow to net income ratio is negative, indicating cash flow challenges. The company is burning cash, as seen in its negative free cash flow to net income ratio, highlighting liquidity concerns.

Breakdown	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	64.22M	483.48M	618.11M	22.95M	6.63M
Gross Profit	-62.87M	153.50M	341.56M	8.00M	6.63M
EBITDA	-311.23M	-148.28M	166.80M	-39.50M	-16.75M
Net Income	-373.46M	-194.06M	33.11M	-47.35M	-20.61M
Balance Sheet
Total Assets	339.79M	694.58M	940.06M	316.33M	27.36M
Cash, Cash Equivalents and Short-Term Investments	81.69M	242.33M	423.71M	127.58M	14.33M
Total Debt	47.94M	54.99M	59.50M	19.81M	7.25M
Total Liabilities	89.53M	118.09M	233.31M	241.41M	11.79M
Stockholders Equity	250.25M	576.49M	706.75M	74.92M	15.57M
Cash Flow
Free Cash Flow	-157.61M	-175.55M	-125.17M	14.39M	-16.05M
Operating Cash Flow	-137.81M	-112.52M	-9.45M	92.54M	-13.10M
Investing Cash Flow	-19.80M	-63.03M	-115.72M	-78.15M	-2.94M
Financing Cash Flow	-3.03M	-5.83M	419.62M	100.36M	3.72M

Cue Health 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%
TIVC	43 Neutral	$3.34M	-0.17	-178.18%	―	-49.63%	82.22%
HLTHQ	38 Underperform	$159.00	―	-149.24%	―	―	―
BJDX	29 Underperform	$1.28M	-0.02	-126.20%	―	―	97.70%