iCAD (ICAD) AI Stock Analysis

• Market Cap: $102.37M
• Dividend Yield: N/A
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• Revenue Growth: -4.15%
• EPS Growth: 3.49%
• Country: US
• Employees: 66
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): -0.02
• Shares Outstanding: 27,445,870
• 10 Day Avg. Volume: 542,019
• 30 Day Avg. Volume: 1,392,656
• PEG Ratio: -4.28
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -37.50
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 5.35
• Enterprise Value/Ebitda: -4.75
• 1Y Price Target: $3.25
• Price Target Upside: -12.87% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: ―

iCAD's overall stock score of 60 reflects a mixed outlook. Significant financial challenges are offset by positive corporate developments, including a strategic merger with RadNet, which is expected to enhance growth. Technical indicators show strong momentum, although valuation remains weak due to ongoing losses.

Positive Factors

Financial Performance

Revenue of $4.9M was higher than the $4.5M consensus estimate, with gross margin 310 bps higher than the consensus forecast.

Product Development

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

Strategic Partnerships

ICAD has a partnership with Google Health for the ProFound Detection for 2D algorithm, indicating collaboration with a major technology company.

Negative Factors

Competitive Interest

There is no anticipation of other bidders for ICAD, suggesting limited competitive interest in the acquisition.

Revenue Model Transition

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

Stock Downgrade

ICAD shares are downgraded to Neutral following the announcement of its acquisition by RadNet.

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 faces significant financial challenges with declining revenues and persistent losses. Despite strong cost management and a solid equity position, the negative cash flows and profitability issues highlight the need for strategic turnaround efforts.

Income Statement

iCAD has experienced a consistent decline in total revenue over the past few years, with a notable decrease from $33.64M in 2021 to $19.61M in 2024. The company has been operating at a loss, with negative EBIT and EBITDA margins for consecutive years, indicating ongoing operational challenges. However, the gross profit margin remains relatively high at 84.9% for 2024, suggesting that while revenue is declining, the company is managing its cost of goods sold effectively.

Balance Sheet

The balance sheet of iCAD shows strength in its equity position with a debt-free status in 2024, compared to previous years where debt was present. The equity ratio improved to 76.4% in 2024, indicating a strong capital structure. However, the company has consistently posted negative net income, resulting in poor return on equity. The high cash reserves relative to liabilities suggest good liquidity management.

Cash Flow

Cash flow analysis reveals iCAD is struggling with negative free cash flow, though it has improved from -$13.32M in 2022 to -$4.11M in 2024. The operating cash flow has been negative, exceeding net income losses, which indicates cash outflows are higher than cash inflows from operations. The lack of significant financing cash flows in recent years suggests limited reliance on external financing.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
19.53M	19.61M	17.32M	27.94M	33.64M	29.70M
	Gross Profit
16.71M	16.64M	14.54M	19.81M	24.24M	21.35M
	EBIT
-5.96M	-6.27M	-7.69M	-13.93M	-10.73M	-9.39M
	EBITDA
-4.84M	-4.88M	-6.57M	-9.50M	-10.55M	-16.52M
	Net Income Common Stockholders
-5.23M	-5.62M	-4.85M	-13.66M	-11.24M	-17.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.03M	17.21M	21.67M	21.31M	34.28M	27.19M
	Total Assets
39.47M	37.54M	41.42M	51.70M	62.19M	55.58M
	Total Debt
0.00	362.00K	461.00K	3.38M	1.16M	8.76M
	Net Debt
-20.03M	-16.84M	-21.21M	-17.93M	-33.13M	-18.43M
	Total Liabilities
8.68M	8.86M	8.00M	16.80M	15.67M	25.06M
	Stockholders Equity
30.79M	28.68M	33.42M	34.90M	46.52M	30.52M
Cash Flow		Free Cash Flow
-2.92M	-4.11M	-6.23M	-13.32M	-9.99M	-7.46M
	Operating Cash Flow
-2.71M	-3.94M	-4.96M	-12.79M	-9.41M	-6.99M
	Investing Cash Flow
118.00K	-519.00K	3.27M	-534.00K	-587.00K	-474.00K
	Financing Cash Flow
2.33M	0.00	2.05M	355.00K	17.09M	19.33M

iCAD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 3.73 is above the 20-day moving average (MA) of 3.70, above the 50-day MA of 2.88, and above the 200-day MA of 2.21, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 64.85 is Neutral, neither overbought nor oversold. The STOCH value of 32.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICAD.

iCAD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LIVN	63 Neutral	$2.40B	30.62	-19.69%	―	7.97%	-592.40%
ICAD	60 Neutral	$102.37M	―	-16.53%	―	-4.15%	3.49%
APYX	54 Neutral	$58.20M	―	-130.26%	―	-6.27%	16.76%
XTNT	54 Neutral	$95.02M	―	-26.20%	―	20.81%	-498.66%
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
HYPR	46 Neutral	$51.37M	―	-67.86%	―	0.34%	6.20%
EDAP	45 Neutral	$65.67M	―	-51.63%	―	11.26%	-14.21%

iCAD Corporate Events

iCAD Announces Merger Agreement with RadNet

On April 15, 2025, iCAD, Inc. entered into a merger agreement with RadNet, Inc., under which RadNet will acquire iCAD in an all-stock transaction valued at approximately $103 million. This merger is expected to enhance RadNet’s AI-powered breast cancer detection capabilities by integrating iCAD’s ProFound Breast Health Suite into RadNet’s DeepHealth portfolio. The transaction, which offers a 98% premium to iCAD stockholders, aims to accelerate RadNet’s growth and leadership in cancer screening and AI solutions, with the merger expected to close in the second or third quarter of 2025, pending customary approvals.

Spark’s Take on ICAD Stock

According to Spark, TipRanks’ AI Analyst, ICAD is a Neutral.

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.

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