Lifeward (LFWD) AI Stock Analysis

• Market Cap: $15.09M
• Dividend Yield: N/A
• Average Volume (3M): 3.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: 85.24%
• EPS Growth: -27.93%
• Country: US
• Employees: 80
• Sector: Healthcare
• Sector Strength: 66
• Industry: Medical - Devices
• EPS (TTM): -3.32
• Shares Outstanding: 10,630,281
• 10 Day Avg. Volume: 184,344
• 30 Day Avg. Volume: 3,816,964
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.71
• Price to Cash Flow (P/CF): -1.10
• 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: $9.00
• Price Target Upside: 533.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Lifeward faces significant challenges despite strong revenue growth. The company's financial instability, highlighted by negative earnings and cash flows, weighs heavily on its stock score. Technical indicators suggest a bearish outlook, and valuation metrics are unattractive. While strategic initiatives and partnerships offer some promise, operational inefficiencies and recent corporate changes present substantial risks.

Positive Factors

Growth Potential

Robust pipeline bodes well for long-term growth.

Market Expansion

Management plans to expand market penetration of ReWalk Personal among patients covered by Centers for Medicare & Medicaid Services, workers compensation insurance and US commercial insurers.

Strategic Partnerships

Partnerships to expand addressable market could potentially help to drive and streamline adoption of Lifeward’s portfolio of products.

Negative Factors

Financial Performance

The company reported a net loss of $1.73 per share, compared to consensus estimated net loss of $0.31 per share.

Reimbursement Challenges

The company continues to experience longer than expected time to receive CMS reimbursement.

Revenue Shortfall

Q3 turned out to not be the record quarter the company anticipated on the Q2 call as revenue of $6.1M significantly missed our $8.5M expectation.

Lifeward Business Overview & Revenue Model

Company Description

ReWalk Robotics Ltd., a medical device company, designs, develops, and commercializes robotic exoskeletons for individuals with mobility impairments or other medical conditions in the United States, Europe, the Asia-Pacific, and Africa. The company offers ReWalk Personal and ReWalk Rehabilitation for spinal cord injuries and everyday use by paraplegic individuals at home and in communities; ReStore, a soft exo-suit intended for use in the rehabilitation of individuals with lower limb disability due to stroke in the clinical rehabilitation environment; and MyoCycle and MediTouch tutor movement biofeedback devices for use at home or in clinic. It markets and sells its products directly to third party payers; institutions, including rehabilitation centers; and individuals, as well as through third-party distributors. The company was formerly known as Argo Medical Technologies Ltd. ReWalk Robotics Ltd. was incorporated in 2001 and is headquartered in Yokneam Illit, Israel.

How the Company Makes Money

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Lifeward Financial Statement Overview

Summary

Lifeward is experiencing substantial revenue growth, but ongoing operational inefficiencies result in negative EBIT and net income. The balance sheet shows a strong equity position, yet with negative cash flows and earnings, highlighting financial instability risks. Future operational improvements are essential.

Income Statement

Lifeward's revenue has shown strong growth, from $4.4 million in 2020 to $25.7 million in 2024, marking a significant upward trajectory. However, the company has consistently posted negative EBIT and net income, indicating operational inefficiencies and challenges in achieving profitability. The gross profit margin is improving but remains offset by high operating expenses.

Balance Sheet

The company has a healthy stockholders' equity position, which is significantly higher than its total liabilities, resulting in a low debt-to-equity ratio. However, the return on equity is negative due to consistent net losses, highlighting a risk of financial instability despite the strong equity base.

Cash Flow

Lifeward experiences negative operating and free cash flow, indicating reliance on external financing for operations. The free cash flow growth rate is negative, showing challenges in converting revenue to cash. Cash flow ratios to net income are unfavorable, reflecting operational cash deficits.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.66M	13.85M	5.51M	5.97M	4.39M
	Gross Profit
8.22M	4.45M	1.91M	2.90M	2.19M
	EBIT
-19.55M	-23.61M	-19.10M	-12.65M	-12.00M
	EBITDA
-15.71M	-21.77M	-18.90M	-12.39M	-11.73M
	Net Income Common Stockholders
448.00K	-22.13M	-19.57M	-12.74M	-12.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.75M	28.08M	67.90M	88.34M	20.35M
	Total Assets
30.49M	63.19M	74.24M	94.75M	28.07M
	Total Debt
880.00K	1.90M	897.00K	1.06M	1.58M
	Net Debt
880.00K	-26.18M	-67.00M	-87.28M	-18.77M
	Total Liabilities
11.64M	16.68M	6.07M	5.37M	6.29M
	Stockholders Equity
18.85M	46.51M	68.17M	89.38M	21.77M
Cash Flow		Free Cash Flow
-21.72M	-20.75M	-17.92M	-11.52M	-12.66M
	Operating Cash Flow
-21.72M	-20.67M	-17.89M	-11.47M	-12.59M
	Investing Cash Flow
0.00	-18.15M	-25.00K	-47.00K	-73.00K
	Financing Cash Flow
0.00	-992.00K	-2.50M	79.51M	16.72M

Lifeward Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.42
• 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 LFWD, the sentiment is Negative. The current price of 1.42 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.66, and below the 200-day MA of 2.44, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 56.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFWD.

Lifeward Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.19B	3.12	-41.08%	2.95%	17.98%	2.02%
LFWD	44 Neutral	$15.09M	―	-88.56%	―	85.24%	-27.93%
ALUR	41 Neutral	$13.95M	―	38.80%	―	-18.49%	91.09%
NNVC	38 Underperform	$20.80M	―	-82.01%	―	―	10.23%
CCM	36 Underperform	$11.63M	―	14.03%	―	-25.83%	21.68%
IXHL	35 Underperform	$17.91M	―	-240.02%	―	―	―
UBX	18 Underperform	$16.70M	―	-148.97%	―	―	47.26%

Lifeward Corporate Events

Lifeward Announces Termination of Chief Sales Officer

Lifeward has announced that Charles Remsberg’s role as Chief Sales Officer will be terminated without cause, effective May 30, 2025. This decision, disclosed in the company’s annual report, ensures Mr. Remsberg will receive severance and benefits as per his employment agreement, potentially impacting the company’s sales leadership and strategy.

Spark’s Take on LFWD Stock

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

Lifeward’s stock is rated low primarily due to ongoing financial challenges, despite strong revenue growth. Technical indicators suggest a current downtrend, and valuation metrics are unattractive due to negative earnings. While strategic initiatives show promise, the high risks associated with financial instability and operational inefficiencies are significant concerns.

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

Rewalk Robotics CEO Larry Jasinski to Step Down

On February 19, 2025, Rewalk Robotics announced that Larry Jasinski will step down as CEO and board member by the end of the second quarter of 2025. Jasinski’s departure will be considered a termination without cause, and the company plans to finalize a separation agreement with him before his exit.