Iradimed (IRMD) AI Stock Analysis

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Iradimed

(NASDAQ:IRMD)

80Outperform

Iradimed scores highly on financial performance and earnings outlook, driven by strong growth and effective cost management. Technical analysis and valuation metrics suggest caution due to recent price trends and high P/E ratio. Overall, the stock presents a solid investment opportunity with some risk from valuation and international market challenges.

Iradimed (IRMD) vs. S&P 500 (SPY)

Market Cap

$677.97M

Dividend Yield1.17%

Average Volume (3M)36.17K

Price to Earnings (P/E)35.3

Beta (1Y)0.74

Revenue Growth11.71%

EPS Growth11.28%

CountryUS

Employees160

SectorHealthcare

Sector Strength69

IndustryMedical - Devices

Share Statistics

EPS (TTM)1.50

Shares Outstanding12,715,072

10 Day Avg. Volume36,114

30 Day Avg. Volume36,168

Financial Highlights & Ratios

PEG Ratio3.13

Price to Book (P/B)N/A

Price to Sales (P/S)9.08

Price to Cash Flow (P/CF)27.80

P/FCF Ratio27.80

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$71.00

Price Target Upside33.16% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Iradimed Business Overview & Revenue Model

Company DescriptionIRadimed Corporation (IRMD) is a leading provider in the medical technology industry, specializing in the development, manufacture, and distribution of innovative MRI-compatible medical devices. The company focuses on delivering high-quality and reliable products that ensure patient safety and enhance the efficiency of healthcare providers. Its core product offerings include non-magnetic intravenous (IV) infusion pumps and patient monitoring systems designed for use in magnetic resonance imaging (MRI) environments, addressing the unique challenges and requirements of MRI procedures.

How the Company Makes MoneyIRadimed generates revenue primarily through the sale of its MRI-compatible medical devices. The company's key revenue streams include the direct sales of its non-magnetic IV infusion pumps and patient monitoring systems to hospitals and healthcare providers. Additionally, IRadimed earns revenue from service contracts and the sale of disposable and accessory components that accompany its main products, ensuring ongoing customer engagement and repeat sales. The company's earnings are further supported by its strategic partnerships with healthcare facilities and its commitment to research and development, which drive product innovation and market expansion.

Iradimed Financial Statement Overview

Summary

Iradimed exhibits strong financial health across all key financial statements. The company demonstrates high revenue and profit growth, robust margins, and a stable balance sheet with minimal debt. Cash flows are healthy with strong free cash generation, providing flexibility for future growth. Overall, Iradimed is financially robust with low risk and high growth potential in the medical equipment and supplies industry.

Income Statement

Very Positive

Iradimed has demonstrated strong financial performance with a consistent upward trajectory in revenue and profitability. The gross profit margin is robust, reflecting effective cost management. Net profit margin and EBIT margin are also healthy, indicating strong operational efficiency. Revenue growth has been impressive over the years, showcasing the company's ability to expand its market presence effectively.

Balance Sheet

Very Positive

The balance sheet is strong with a very low debt-to-equity ratio, indicating minimal reliance on debt financing and a stable equity base. The equity ratio is high, reflecting a solid asset base funded by equity. Return on equity is impressive, showcasing effective utilization of shareholders' funds to generate profits. Overall, the balance sheet is stable with low financial risk.

Cash Flow

Very Positive

Cash flow analysis reveals strong operational cash generation with a healthy free cash flow position. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion. Free cash flow growth is robust, supporting potential reinvestment or shareholder returns. The company maintains a solid cash position, enhancing financial flexibility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
73.24M	65.56M	53.30M	41.81M	31.72M
	Gross Profit
56.35M	50.16M	41.28M	32.05M	23.57M
	EBIT
21.96M	20.04M	15.63M	9.82M	-756.09K
	EBITDA
21.96M	20.80M	16.30M	11.22M	582.73K
	Net Income Common Stockholders
19.23M	17.19M	12.83M	9.33M	1.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
52.23M	49.76M	57.96M	62.50M	51.98M
	Total Assets
98.33M	92.16M	85.51M	82.88M	71.07M
	Total Debt
154.69K	2.04M	2.21M	2.48M	2.72M
	Net Debt
-52.08M	-47.72M	-55.76M	-59.52M	-47.35M
	Total Liabilities
11.51M	20.74M	11.84M	10.71M	9.68M
	Stockholders Equity
86.82M	71.42M	73.67M	72.17M	61.38M
Cash Flow		Free Cash Flow
17.62M	5.46M	8.17M	10.52M	5.18M
	Operating Cash Flow
25.62M	13.47M	10.04M	11.26M	5.82M
	Investing Cash Flow
-8.82M	-8.01M	-1.37M	648.24K	246.97K
	Financing Cash Flow
-14.34M	-13.66M	-12.71M	24.43K	522.48K

Iradimed Technical Analysis

Technical Analysis Sentiment

Positive

Last Price53.32

Price Trends

50DMA

52.90

Positive

100DMA

54.84

Negative

200DMA

51.60

Positive

Market Momentum

MACD

-0.09

Negative

RSI

54.59

Neutral

STOCH

82.48

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRMD, the sentiment is Positive. The current price of 53.32 is above the 20-day moving average (MA) of 51.81, above the 50-day MA of 52.90, and above the 200-day MA of 51.60, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 82.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRMD.

Iradimed Risk Analysis

Iradimed disclosed 36 risk factors in its most recent earnings report. Iradimed reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Iradimed Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRMD	80 Outperform	$677.97M	35.31	24.31%	1.17%	11.71%	11.28%
SIBN	60 Neutral	$611.75M	―	-18.38%	―	20.37%	34.10%
Sector *	51 Neutral	$5.32B	3.32	-40.25%	2.90%	17.93%	2.14%
AVNS	50 Neutral	$576.42M	45.80	-37.42%	―	-2.54%	-546.91%
BVS	49 Neutral	$627.43M	―	-20.86%	―	11.89%	79.18%
RXST	47 Neutral	$607.27M	―	-12.43%	―	57.08%	49.93%
CBLL	46 Neutral	$549.14M	―	26.25%	―	―	―

* Healthcare Sector Average

Performance Comparison

IRMD

Iradimed

53.32

11.99

29.01%

AVNS

Avanos Medical

12.35

-5.75

-31.77%

SIBN

SI-Bone

14.41

-0.16

-1.10%

BVS

Bioventus

7.65

3.67

92.21%

RXST

RxSight

14.95

-37.82

-71.67%

CBLL

Ceribell, Inc.

15.31

-10.19

-39.96%

Iradimed Earnings Call Summary

Earnings Call Date: Feb 13, 2025 | % Change Since: -11.58% | Next Earnings Date: May 1, 2025

Earnings Call Sentiment Positive

The earnings call presented a positive outlook with record-breaking revenue and growth, strong domestic sales, and increased earnings per share, despite challenges in international sales, a slight decline in gross margin, and impacts from capital expenditures.

Highlights

Record-Breaking Revenue and Growth

IRADIMED CORPORATION reported its 14th consecutive record quarter with revenue exceeding $19.4 million, an increase of 11% compared to Q4 2023. Annual revenue for fiscal year 2024 increased by 12% to $73.2 million, driven by strong demand for IV pumps.

Strong Domestic Sales Performance

Domestic sales saw a significant increase of 21% to $16.5 million, accounting for approximately 85% of total revenue for Q4 2024, compared to 78% in the previous year.

Increased Earnings Per Share

GAAP diluted earnings per share increased by 11% from Q4 2023, and non-GAAP adjusted net income per diluted share increased by 12% year-over-year.

Successful Cost Management

Cash from operations increased to $6 million for Q4 2024, up from $3.9 million in the previous year, due to efficient working capital management.

Lowlights

International Sales Decline

International sales decreased by 24% to $2.9 million, indicating challenges in global markets compared to domestic performance.

Slight Decline in Gross Margin

Gross margin for Q4 2024 was 76.1%, slightly below 76.9% from the same quarter in 2023, attributed to increased overhead spending.

Construction and Capital Expenditure Impact

Free cash flow decreased to $2.9 million from $3.3 million due to ongoing capital expenditures for a new facility, with an additional $5.5 million expected to complete the project.

Company Guidance

During the IRADIMED CORPORATION Fourth Quarter 2024 Financial Results Conference Call, guidance was provided for the upcoming fiscal quarters. For Q1 2025, the company anticipates revenue between $19.2 million and $19.4 million, with GAAP diluted earnings per share ranging from $0.35 to $0.39, and non-GAAP diluted earnings per share expected to be between $0.39 and $0.43. For the full year 2025, IRADIMED projects revenue to fall between $78 million and $82 million, with GAAP diluted earnings per share of $1.55 to $1.65 and non-GAAP diluted earnings per share of $1.71 to $1.81. The company is also preparing for the launch of its new 3870 MR IV pump, expected to receive FDA clearance by mid-2025, with significant revenue from this device projected for 2026. Additionally, they are managing the construction of a new facility, expected to be completed by June 2025, which will aid in supporting future growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.