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

• Market Cap: $3.62M
• Dividend Yield: N/A
• Average Volume (3M): 12.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: -100.00%
• EPS Growth: 78.91%
• Country: US
• Employees: 15
• Sector: Healthcare
• Sector Strength: 69
• Industry: Medical - Devices
• EPS (TTM): -10.21
• Shares Outstanding: 1,080,946
• 10 Day Avg. Volume: 18,383
• 30 Day Avg. Volume: 12,090
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 285.46
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.00
• Price Target Upside: 288.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Heart Test Laboratories, Inc. has a low overall stock score due to severe financial challenges, including negative net income and cash flow issues. The technical analysis shows neutral momentum, but the valuation is unattractive with a negative P/E ratio. The stock's performance is hindered by financial instability and lack of positive valuation metrics.

Positive Factors

Partnerships and Agreements

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

Product Development

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

Revenue Opportunities

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

Negative Factors

Cash Flow and Financing

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

Debt and Liquidity

The company held $2.6M in cash and $2.5M in debt and will need to access its equity line or other sources of capital.

Financial Performance

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

Heart Test Laboratories, Inc. Business Overview & Revenue Model

Company Description

Heart Test Laboratories, Inc. (HSCS) is a healthcare technology company specializing in the development of innovative medical devices and diagnostic solutions. The company primarily focuses on advancing cardiovascular diagnostics with its proprietary technologies designed to improve the accuracy, efficiency, and accessibility of heart disease testing. Operating within the medical device sector, Heart Test Laboratories aims to provide healthcare professionals with the tools needed to enhance patient outcomes through early and accurate detection of cardiovascular conditions.

How the Company Makes Money

Heart Test Laboratories, Inc. generates revenue through the sale of its proprietary cardiovascular diagnostic devices and related services. The company's primary revenue stream comes from direct sales to healthcare facilities, including hospitals, clinics, and diagnostic centers, which utilize the company's devices for patient testing. Additionally, Heart Test Laboratories may earn income through partnerships and collaborations with medical institutions and research organizations, contributing to the development and distribution of its products. The company may also engage in licensing agreements or offer subscription-based services for ongoing device maintenance and software updates, providing a recurring revenue model. Key factors contributing to its earnings include the adoption of its innovative technologies within the healthcare industry and the expanding demand for accurate cardiovascular diagnostic solutions.

Heart Test Laboratories, Inc. Financial Statement Overview

Summary

Heart Test Laboratories, Inc. faces critical financial challenges across all statements. Persistently negative income, high leverage, and poor cash flow generation highlight significant financial instability and potential sustainability risks. The company needs strategic interventions to improve revenue, manage costs, and optimize its capital structure to ensure long-term viability.

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

Heart Test Laboratories, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.35
• 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 HSCS, the sentiment is Positive. The current price of 3.35 is above the 20-day moving average (MA) of 3.12, above the 50-day MA of 3.18, and below the 200-day MA of 3.40, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.49 is Neutral, neither overbought nor oversold. The STOCH value of 33.86 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 *	51 Neutral	$5.35B	3.41	-40.83%	2.89%	18.11%	2.60%
NUWE	47 Neutral	$4.16M	―	-229.24%	―	-1.40%	91.79%
SINT	42 Neutral	$6.16M	―	-174.07%	―	9.90%	94.56%
HSCS	41 Neutral	$3.62M	―	-163.47%	―	-100.00%	78.91%
AMIX	40 Underperform	$5.76M	―	-662.74%	―	―	-10.29%
RSLS	37 Underperform	$4.08M	―	-222.46%	―	-7.74%	93.25%
VERO	36 Underperform	$3.58M	―	-496.27%	―	-15.09%	-2.50%

Heart Test Laboratories, Inc. Corporate Events

Heart Test Labs Announces Stock Options and Leadership Changes

On January 16, 2025, Heart Test Laboratories, Inc. granted stock options to key executive officers and non-employee directors. The company’s Compensation Committee awarded options to executives, including Andrew Simpson, Mark Hilz, and Danielle Watson, with a vesting schedule over three years. Non-employee directors also received options with a different vesting timeline. These stock options form part of the company’s 2023 Equity Incentive Plan and may accelerate upon achieving regulatory milestones for their products.