Heart Test Laboratories, Inc. (HSCS) AI Stock Analysis

• Market Cap: $3.99M
• Dividend Yield: N/A
• Average Volume (3M): 14.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: -100.00%
• EPS Growth: 78.91%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Devices
• EPS (TTM): -10.21
• Shares Outstanding: 1,080,946
• 10 Day Avg. Volume: 12,327
• 30 Day Avg. Volume: 14,714
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: >-0.01
• 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: $13.00
• Price Target Upside: 252.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Heart Test Laboratories, Inc. exhibits significant financial instability with persistent losses and high leverage, which heavily weigh down its overall score. Although there is some positive short-term technical momentum, the valuation remains unattractive due to a negative P/E ratio and no dividend yield, contributing to a low overall score.

Positive Factors

FDA Approval

The company expects to submit its MyoVista device for FDA approval, which could lead to significant advancements in their product offerings.

Partnerships and Strategy

A shift to software-based solutions, the Mount Sinai partnership, and international agreements are seen as positives.

Revenue Opportunities

CMS reimbursement for AI-ECG technology paves the way for monetization, creating potential revenue opportunities for HeartSciences.

Negative Factors

Earnings Performance

The company's earnings per share came in lower than the consensus estimate, indicating higher expenses than anticipated.

Financial Stability

The company will need to raise substantial cash to maintain its operations until it reaches its expected monetization phase.

Guidance and Pre-Revenue Status

Heart Test Laboratories, Inc. is still pre-revenue and no forward guidance was provided.

Heart Test Laboratories, Inc. Business Overview & Revenue Model

Company Description

Heart Test Laboratories, Inc., a medical technology company, provides cardiovascular diagnostic devices. The company offers MyoVista wavECG, a resting 12-lead electrocardiograph (ECG) to provide diagnostic information related to cardiac dysfunction, as well as conventional 12-lead resting ECG information. It serves clinics, doctor's offices, urgent care centers, and hospitals. The company was incorporated in 2007 and is headquartered in Southlake, Texas.

How the Company Makes Money

Heart Test Laboratories, Inc. generates revenue primarily through the sale and distribution of its MyoVista diagnostic device to healthcare providers, including hospitals, clinics, and cardiology centers. The company may also earn income from service agreements and maintenance contracts for the MyoVista device. Additionally, partnerships with healthcare organizations and research institutions can contribute to its earnings, potentially including licensing agreements or collaborative development initiatives.

Heart Test Laboratories, Inc. Financial Statement Overview

Summary

Heart Test Laboratories, Inc. faces critical financial challenges, with negative net income, high leverage, and poor cash flow generation. These factors highlight significant financial instability and potential sustainability risks.

Income Statement

Heart Test Laboratories, Inc. shows weak financial performance with negative net income and gross profit in the TTM. Revenue has decreased significantly from previous periods, and the company is operating at a substantial loss with negative EBIT and EBITDA margins. The negative revenue growth trend highlights a challenging business environment.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage. The company has negative equity in several periods, reflecting financial instability. The high total liabilities compared to assets and equity raise concerns about the company's solvency and risk of financial distress.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, suggesting poor cash generation from operations. The negative free cash flow growth and high reliance on financing activities to cover cash needs show potential liquidity challenges. The company's cash flow to net income ratios are not favorable, indicating inefficiencies in converting income into cash.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
0.00	18.60K	5.15K	14.37K	25.60K	64.18K
	Gross Profit
-42.52K	12.52K	2.35K	6.48K	14.94K	17.72K
	EBIT
-2.38B	-6.31M	-6.11M	-4.71M	-2.57M	-3.82M
	EBITDA
-4.36B	-6.16M	-6.08M	-4.43M	-2.29M	-3.74M
	Net Income Common Stockholders
-2.54B	-6.61M	-490.85M	-4.58M	-2.58M	-3.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.60M	5.81M	1.66M	918.26K	723.48K	496.85K
	Total Assets
5.70M	9.50M	3.29M	2.09M	1.93M	1.96M
	Total Debt
2.99M	1.04M	1.57M	6.16M	3.08M	942.71K
	Net Debt
390.56M	-4.77M	-94.60K	5.24M	2.36M	445.86K
	Total Liabilities
3.92M	2.19M	3.06M	8.15M	3.84M	1.64M
	Stockholders Equity
1.79B	7.32M	230.56K	-6.06M	-1.91M	315.55K
Cash Flow		Free Cash Flow
-4.21B	-6.20M	-5.79M	-3.65M	-2.45M	-3.85M
	Operating Cash Flow
-4.21B	-6.07M	-5.77M	-3.64M	-2.45M	-3.84M
	Investing Cash Flow
-6.80M	-125.27K	-18.31K	-1.93K	-712.00	8.17K
	Financing Cash Flow
2.45B	10.34M	6.53M	3.84M	2.68M	1.81M

Heart Test Laboratories, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSCS, the sentiment is Positive. The current price of 3.69 is above the 20-day moving average (MA) of 3.46, above the 50-day MA of 3.20, and above the 200-day MA of 3.37, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 76.85 is Negative, neither overbought nor oversold. The STOCH value of 65.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSCS.

Heart Test Laboratories, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	52 Neutral	$5.19B	3.04	-44.20%	2.82%	16.59%	-0.39%
NUWE	49 Neutral	$4.20M	―	-440.77%	―	-1.21%	93.72%
SINT	42 Neutral	$7.93M	―	-155.20%	―	9.90%	94.56%
AMIX	40 Underperform	$4.61M	―	-662.74%	―	―	-10.29%
RSLS	37 Underperform	$4.78M	―	-222.46%	―	-7.74%	93.25%
VERO	37 Underperform	$3.13M	―	-496.27%	―	-16.79%	-3.69%
HSCS	34 Underperform	$3.99M	―	-163.47%	―	-100.00%	78.91%

Heart Test Laboratories, Inc. Corporate Events

Heart Test Labs Granted Nasdaq Compliance Extension

HeartSciences Inc. has been granted an extension by Nasdaq to regain compliance with the minimum stockholders’ equity requirement, with a deadline of September 15, 2025, to complete necessary transactions. Failure to comply could lead to delisting, impacting the company’s stock liquidity and market presence. In the third quarter of fiscal 2025, HeartSciences reported significant progress in its AI-ECG technology, including FDA submission preparations for the MyoVista® wavECG™ device and the development of the MyoVista Insights™ platform. The company is actively working on regulatory submissions and collaborations to enhance ECG management systems, aiming for a significant commercial opportunity with the CMS 2025 OPPS final rule enabling reimbursement for AI-ECG.

The most recent analyst rating on (HSCS) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Heart Test Laboratories, Inc. stock, see the HSCS Stock Forecast page.

Spark’s Take on HSCS Stock

According to Spark, TipRanks’ AI Analyst, HSCS is a Underperform.

Heart Test Laboratories, Inc. exhibits significant financial instability, with negative income, high leverage, and poor cash flow generation. Technical indicators remain neutral, failing to show a clear trend. Valuation concerns are substantial, given the negative P/E ratio and lack of dividend yield. Overall, the company’s current financial position presents significant risks to potential investors.

To see Spark’s full report on HSCS stock, click here.