Kestra Medical Technologies Ltd. (KMTS) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: N/A
• Average Volume (3M): 273.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 83.78%
• EPS Growth: -25.37%
• Country: US
• Employees: 300
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.50
• Shares Outstanding: 51,449,055
• 10 Day Avg. Volume: 412,594
• 30 Day Avg. Volume: 273,667
• PEG Ratio: -0.69
• Price to Book (P/B): -5.17
• Price to Sales (P/S): 38.89
• P/FCF Ratio: -12.76
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 13.35
• Enterprise Value/Gross Profit: 29.96
• Enterprise Value/Ebitda: -7.31
• 1Y Price Target: $25.67
• Price Target Upside: 2.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 52 Neutral
• Price Target: $22.00 ▼(-11.79% Downside)

Kestra Medical Technologies Ltd. shows strong revenue growth and improving gross margins, which are positive indicators. However, the company faces challenges with profitability and high operating expenses. Technical indicators suggest short-term bullish momentum, but the negative P/E ratio and lack of dividend yield are concerns for valuation. The earnings call provided optimistic guidance, but ongoing net losses remain a significant risk.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, which can lead to increased market share and long-term business expansion.

Gross Margin Expansion

Consistent gross margin improvement suggests effective cost management and pricing power, enhancing profitability potential over time.

In-Network Patient Increase

Increasing in-network patient percentage can lead to higher revenue per fitting and improved cash flow, supporting sustainable growth.

Negative Factors

Ongoing Net Loss

Persistent net losses highlight challenges in achieving profitability, which can strain financial resources and hinder long-term viability.

High Operating Expenses

Rising operating expenses due to growth investments can pressure margins and delay profitability, impacting financial health.

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and cost challenges, which may impede sustainable financial performance.

Kestra Medical Technologies Ltd. Business Overview & Revenue Model

Company Description

Kestra Medical Technologies, Ltd. operates as a wearable medical device and digital healthcare company. It focuses on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected. The company develops and commercializes Cardiac Recovery System platform, a system that integrates monitoring, therapeutic treatment, digital health, and patient support services into a single, unified solution. Its Cardiac Recovery System platform is the ASSURE WCD, a wearable cardioverter defibrillator (WCD) used to protect patients at an elevated risk of sudden cardiac arrest (SCA). The company's Cardiac Recovery System platform also includes a suite of integrated digital solutions and services that enable enhanced patient and provider engagement and oversight with the objective of improving patient outcomes. The company was founded in 2014 and is based in Kirkland, Washington.

How the Company Makes Money

Kestra Medical Technologies Ltd. generates revenue primarily through the sale of its medical devices and technologies. The company adopts a business model that includes direct sales to hospitals and clinics, as well as partnerships with distributors and healthcare organizations. Key revenue streams include the sale of diagnostic equipment, monitoring devices, and associated consumables. Additionally, KMTS may engage in strategic partnerships with other healthcare companies and research institutions to co-develop products, which can provide additional revenue through licensing agreements and shared research funding. The company also invests in ongoing research and development to innovate new products, which can lead to increased market share and sales growth.

Kestra Medical Technologies Ltd. Financial Statement Overview

Summary

Kestra Medical Technologies Ltd. is experiencing strong revenue growth, but profitability remains a significant challenge. The balance sheet is relatively stable with moderate leverage, but the company is not yet profitable. Cash flow improvements are promising, but operational efficiency needs enhancement to achieve sustainable profitability.

Income Statement

Kestra Medical Technologies Ltd. has shown significant revenue growth of 137.89% in the latest year, which is a positive indicator of market expansion. However, the company is struggling with profitability, as evidenced by negative net profit margins (-190.28%) and EBIT margins (-177.12%). The gross profit margin has improved to 40.47%, indicating better cost management, but the overall negative margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet shows a manageable debt-to-equity ratio of 0.22, suggesting moderate leverage. However, the company has a negative return on equity (-55.41%), indicating that it is not generating profit from shareholders' equity. The equity ratio stands at 69.45%, reflecting a strong equity base relative to total assets, which is a positive aspect.

Cash Flow

Kestra Medical Technologies Ltd. has experienced a substantial increase in free cash flow growth (143.29%), which is a positive sign. However, the operating cash flow to net income ratio is negative (-2.04), indicating cash flow challenges relative to net income. The free cash flow to net income ratio is positive (1.30), suggesting that the company is generating free cash flow despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2020	Dec 2019
Income Statement
Total Revenue	51.69M	59.81M	27.81M	7.63M	0.00	0.00
Gross Profit	23.03M	24.21M	362.00K	-10.65M	0.00	0.00
EBITDA	-94.36M	-97.98M	-76.31M	-73.74M	-32.33M	-28.84M
Net Income	-99.39M	-113.81M	-94.12M	-84.24M	-34.10M	-29.47M
Balance Sheet
Total Assets	266.30M	295.74M	45.95M	38.66M	30.52M	7.87M
Cash, Cash Equivalents and Short-Term Investments	201.21M	237.59M	8.25M	14.81M	24.34M	5.76M
Total Debt	3.10M	44.31M	45.17M	39.13M	22.85M	452.00K
Total Liabilities	82.14M	90.34M	255.33M	156.23M	28.76M	4.02M
Stockholders Equity	184.16M	205.41M	-209.38M	-117.58M	1.77M	3.86M
Cash Flow
Free Cash Flow	-88.63M	-101.20M	-84.75M	-85.10M	-30.23M	-30.52M
Operating Cash Flow	-68.36M	-77.61M	-72.23M	-69.64M	-29.89M	-30.29M
Investing Cash Flow	-20.06M	-23.31M	-12.23M	-15.46M	-334.00K	-232.00K
Financing Cash Flow	212.71M	330.26M	77.72M	96.11M	48.81M	30.24M

Kestra Medical Technologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLFS	60 Neutral	1.22B	-215.96	-1.59%	―	-18.61%	92.36%
STAA	56 Neutral	1.35B	-14.10	-28.31%	―	-32.59%	-667.81%
ANGO	55 Neutral	437.63M	-12.93	0.00%	―	-3.76%	81.78%
KMTS	52 Neutral	$1.22B	―	-130.38%	―	83.78%	-25.37%
OSUR	50 Neutral	247.20M	-4.94	-13.40%	―	-49.35%	-285.61%
PLSE	44 Neutral	1.18B	-16.69	0.00%	―	0.00%	-33.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Kestra Medical Technologies Ltd. Corporate Events

Kestra Medical’s 2025 Annual Shareholder Meeting Outcomes

Kestra Medical Technologies, Ltd. held its 2025 annual general meeting of shareholders on September 3, 2025, where significant decisions were made regarding the company’s governance and financial oversight. The shareholders elected Conor Hanley and Elizabeth Kwo as Class I directors until the 2028 annual meeting, ratified PricewaterhouseCoopers as the independent registered public accounting firm for the fiscal year ending April 30, 2026, and approved the 2025 Employee Stock Purchase Plan.

The most recent analyst rating on (KMTS) stock is a Hold with a $15.50 price target. To see the full list of analyst forecasts on Kestra Medical Technologies Ltd. stock, see the KMTS Stock Forecast page.