Kestra Medical Technologies Ltd. (KMTS) AI Stock Analysis

• Market Cap: $951.75M
• Dividend Yield: N/A
• Average Volume (3M): 303.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: 115.05%
• EPS Growth: -21.37%
• Country: US
• Employees: 300
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -2.21
• Shares Outstanding: 51,348,656
• 10 Day Avg. Volume: 150,406
• 30 Day Avg. Volume: 303,929
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 32.24
• Enterprise Value/Gross Profit: 73.50
• Enterprise Value/Ebitda: -15.92
• 1Y Price Target: $24.58
• Price Target Upside: 36.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 45 Neutral
• Price Target: $15.50 ▼(-13.89% Downside)

Kestra Medical Technologies Ltd. faces significant challenges with profitability and valuation, as reflected in its negative P/E ratio and lack of dividend yield. Despite strong revenue growth and some improvements in cash flow, the stock's technical indicators suggest bearish momentum. The company's financial performance is the most significant factor, highlighting the need for improved operational efficiency to achieve profitability.

Positive Factors

Future Guidance

FY2026 guidance of $85m was set $2m above the Street’s current estimate of $83m.

Market Expansion

Kestra has seen a 120% increase in prescription rates at some accounts after adopting ASSURE, indicating market expansion.

Revenue Growth

4QFY25 revenue of $17.2 million increased 71% YoY and came in +10% ahead of consensus data.

Negative Factors

Adjusted EBITDA

A 4Q adjusted EBITDA loss of $20.3 million was greater than expected, reflecting higher investment into the company’s commercial strategy.

Operating Expenses

Operating expense in FQ4 was slightly higher than expected due to public company costs and investments in the commercial organization following the hiring of the Chief Commercial Officer.

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	32.32M	59.81M	27.81M	7.63M	0.00	0.00
Gross Profit	14.18M	24.21M	362.00K	-10.65M	0.00	0.00
EBITDA	-65.48M	-97.98M	-76.31M	-73.74M	-32.33M	-28.84M
Net Income	-73.56M	-113.81M	-94.12M	-84.24M	-34.10M	-29.47M
Balance Sheet
Total Assets	295.74M	295.74M	45.95M	38.66M	30.52M	7.87M
Cash, Cash Equivalents and Short-Term Investments	237.59M	237.59M	8.25M	14.81M	24.34M	5.76M
Total Debt	44.31M	44.31M	45.17M	39.13M	22.85M	452.00K
Total Liabilities	90.34M	90.34M	255.33M	156.23M	28.76M	4.02M
Stockholders Equity	205.41M	205.41M	-209.38M	-117.58M	1.77M	3.86M
Cash Flow
Free Cash Flow	-54.19M	-101.20M	-84.75M	-85.10M	-30.23M	-30.52M
Operating Cash Flow	-42.08M	-77.61M	-72.23M	-69.64M	-29.89M	-30.29M
Investing Cash Flow	-11.82M	-23.31M	-12.23M	-15.46M	-334.00K	-232.00K
Financing Cash Flow	214.58M	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	$1.23B	―	-5.98%	―	-18.61%	92.36%
OSUR	57 Neutral	$254.52M	25.27	-12.65%	―	-49.35%	-285.61%
STAA	56 Neutral	$1.36B	55.81	-25.55%	―	-32.59%	-667.81%
ANGO	55 Neutral	$397.81M	―	-17.50%	―	-3.76%	81.78%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
KMTS	45 Neutral	$951.75M	―	-130.38%	―	115.05%	-21.37%
PLSE	44 Neutral	$1.14B	―	-103.50%	―	―	-33.24%

Kestra Medical Technologies Ltd. Corporate Events

Kestra Medical Appoints Conor Hanley to Board

On June 4, 2025, Kestra Medical Technologies Ltd. announced the election of Mr. Conor Hanley to its Board of Directors, highlighting his extensive leadership experience in the medical technology sector. Additionally, the company amended employment agreements with key executives, redefining ‘Good Reason’ for termination, which could impact executive stability and company operations.