iCAD (ICAD) AI Stock Analysis

• Market Cap: $48.71M
• Dividend Yield: N/A
• Average Volume (3M): 274.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: -4.15%
• EPS Growth: 3.49%
• Country: US
• Employees: 67
• Sector: Healthcare
• Sector Strength: 71
• Industry: Medical - Devices
• EPS (TTM): -0.21
• Shares Outstanding: 27,365,683
• 10 Day Avg. Volume: 261,379
• 30 Day Avg. Volume: 274,792
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.12
• Price to Cash Flow (P/CF): -9.80
• P/FCF Ratio: 0.00
• 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: $3.00
• Price Target Upside: 64.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

iCAD's stock is hindered by significant financial challenges, including declining revenue and persistent losses. Despite a solid equity position and a promising SaaS transition, the stock's technical indicators and valuation are weak. Improvements in operational efficiency and revenue stabilization are essential for better prospects.

Positive Factors

Financial Performance

ICAD reported preliminary Q4 revenue beating consensus and estimates.

International Expansion

ICAD has entered into new distribution partnerships for ProFound Cloud in South Africa, Portugal, and the UK, and secured regulatory approval in Jordan.

Product Innovation

ProFound Detection v4.0, which was cleared by the FDA, has shown even better accuracy in real-world practice than in clinical studies.

Negative Factors

Quarterly Revenue Miss

ICAD reported Q3 revenue of $4.2M, below consensus of $4.5M and estimates of $4.8M.

Revenue Model Transition

There is an expectation of near-term lumpiness because of the lower upfront revenue from the transition to a recurring model.

iCAD Business Overview & Revenue Model

Company Description

iCAD, Inc. provides image analysis, workflow solutions, and radiation therapy for the treatment of cancer in the United States. It operates through two segments, Cancer Detection and Cancer Therapy. The company offers PowerLook platform, which hosts the AI algorithm solutions and manages the communications between imaging acquisition systems, and image storage and review systems; SecondLook, a machine learning-based cancer detection algorithm that analyzes 2D full-field digital mammography images to identify and mark suspicious masses and calcifications; and automated density assessment solutions, which provides automated, consistent, and standardized density assessment. It also offers ProFound AI, a deep-learning algorithm designed to detect malignant soft-tissue densities and calcifications in digital breast tomosynthesis; ProFound AI Risk, a tool that provides breast cancer risk estimation based on a screening mammogram; and magnetic resonance imaging applications, a tool to detect breast and prostate cancer. In addition, the company offers VeraLook, a solution designed to support the detection of colonic polyps in conjunction with CT Colonography. Further, it provides Xoft Axxent electronic brachytherapy systems for the treatment of early stage breast, non-melanoma skin, and gynecological cancers to university research and community hospitals, cancer care clinics, veterinary facilities, and dermatology offices. The company sells its products through direct sales organizations, as well as through various original equipment manufacturer partners, distributors, technology platform partners, and resellers. It also exports its products in Europe, Taiwan, Canada, China, and internationally. The company was formerly known as Howtek, Inc. and changed its name to iCAD, Inc. in June 2002. iCAD, Inc. was incorporated in 1984 and is headquartered in Nashua, New Hampshire.

How the Company Makes Money

iCAD generates revenue through the sale of its diagnostic and therapeutic products and solutions to healthcare facilities worldwide. Key revenue streams include the sale of software and hardware products for cancer detection and therapy, recurring revenue from service contracts and software upgrades, and sales of consumables related to its therapy systems. Significant partnerships with hospitals, clinics, and research institutions also contribute to its earnings by expanding its market reach and adoption of its technologies. Additionally, iCAD may receive revenue through licensing agreements and collaborations that help enhance its product offerings and market presence.

iCAD Financial Statement Overview

Summary

iCAD shows a strong gross profit margin and a solid equity position, indicating potential for future recovery. However, persistent operating losses, negative cash flows, and declining revenue trends highlight ongoing operational and financial challenges. The company must focus on improving operational efficiency and stabilizing revenue to enhance its financial health.

Income Statement

The company has struggled with profitability, as indicated by negative EBIT, EBITDA, and net income over multiple periods. The gross profit margin for TTM is strong at 85.3%, but net profit margin remains negative due to high operating costs. Revenue has declined from 2020 to 2023 but saw slight growth in the TTM period, indicating potential stabilization.

Balance Sheet

iCAD maintains a strong equity position with an equity ratio of 79.1% in the TTM period, suggesting a stable financial structure. The debt-to-equity ratio is low at 0.014, indicating minimal leverage and low financial risk. However, the company has consistently reported negative net income, impacting the return on equity, which remains negative.

Cash Flow

The company has experienced negative operating and free cash flows, reflecting challenges in generating cash from operations. There is a slight improvement in free cash flow growth in TTM compared to the previous year, but it remains negative. The operating cash flow to net income ratio is below 1, indicating cash flow issues relative to accounting net income.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
18.94M	17.32M	27.94M	33.64M	29.70M	31.34M
	Gross Profit
16.16M	14.54M	19.81M	24.24M	21.35M	24.23M
	EBIT
-6.12M	-7.69M	-13.93M	-10.73M	-9.39M	-6.40M
	EBITDA
-4.98M	-6.57M	-9.50M	-10.55M	-16.52M	-12.05M
	Net Income Common Stockholders
-3.40M	-4.85M	-13.66M	-11.24M	-17.61M	-13.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.30M	21.67M	21.31M	34.28M	27.19M	15.31M
	Total Assets
72.56M	41.42M	51.70M	62.19M	55.58M	41.75M
	Total Debt
0.00	461.00K	3.38M	1.16M	8.76M	22.49M
	Net Debt
-16.30M	-21.21M	-17.93M	-33.13M	-18.43M	7.18M
	Total Liabilities
6.96M	8.00M	16.80M	15.67M	25.06M	36.68M
	Stockholders Equity
65.60M	33.42M	34.90M	46.52M	30.52M	5.07M
Cash Flow		Free Cash Flow
-4.82M	-6.23M	-13.32M	-9.99M	-7.46M	-7.41M
	Operating Cash Flow
-4.07M	-4.96M	-12.79M	-9.41M	-6.99M	-7.11M
	Investing Cash Flow
3.69M	3.27M	-534.00K	-587.00K	-474.00K	-306.00K
	Financing Cash Flow
125.00K	2.05M	355.00K	17.09M	19.33M	10.54M

iCAD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICAD, the sentiment is Negative. The current price of 1.82 is below the 20-day moving average (MA) of 2.01, below the 50-day MA of 2.46, and below the 200-day MA of 1.89, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 39.72 is Neutral, neither overbought nor oversold. The STOCH value of 41.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ICAD.

iCAD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOLX	71 Outperform	$13.20B	18.62	15.78%	―	1.75%	50.25%
BKYI	54 Neutral	$2.27M	―	-186.32%	―	-25.57%	51.54%
CGEN	52 Neutral	$117.83M	87.50	-23.63%	―	-16.72%	26.35%
CYRX	52 Neutral	$282.49M	―	-25.76%	―	-2.09%	-13.01%
Sector *	48 Neutral	$6.46B	1.17	-48.25%	2.67%	19.50%	0.61%
ICAD	46 Neutral	$48.71M	―	-18.09%	―	-4.15%	3.49%
THMO	39 Underperform	$16.00	―	1078.28%	―	-7.53%	77.39%