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Pulmonx (LUNG)
NASDAQ:LUNG
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Pulmonx
(NASDAQ:LUNG)
51Neutral
Positive Factors
Growth Initiatives
Both Mr. Williamson and Mr. Joshi are leveraging their past commercial leadership experience to drive initiatives that should help the company achieve its >20% long-term growth target.
Product Development
Pulmonx Zephyr Valves can become a standard of care option for patients with severe emphysema and hyperinflation.
Valuation
The company is trading at a compelling valuation, reiterating a BUY rating and $16 price target.
Negative Factors
Credit Recognition
Limited credit is being given for strengths in new international markets and upcoming product additions, which are expected to be significant growth drivers.
Management Turnover
Despite management turnover and broader MedTech weakness, the current team has been executing effectively to numbers.
R&D Expenses
Management expects leverage in SG&A this year, with operating expense growth primarily driven by higher R&D costs associated with the CONVERT II trial enrollment expenses.
Pulmonx (LUNG) vs. S&P 500 (SPY)
Market Cap
$269.02M
Dividend YieldN/A
Average Volume (3M)312.63K
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth22.01%
EPS Growth10.02%
CountryUS
Employees291
SectorHealthcare
Sector Strength77
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.44
Shares Outstanding39,796,420
10 Day Avg. Volume319,088
30 Day Avg. Volume312,627
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.69
Price to Cash Flow (P/CF)-11.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.17Price Target Upside94.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Pulmonx Business Overview & Revenue Model
Company DescriptionPulmonx Corporation (LUNG) is a medical technology company specializing in the development and commercialization of innovative solutions for the treatment of chronic obstructive pulmonary disease (COPD) and other severe lung conditions. The company's flagship product, the Zephyr Endobronchial Valve, is a minimally invasive treatment option that helps improve breathing and quality of life for patients with emphysema, a form of COPD. Pulmonx operates in the healthcare sector, focusing on advancing pulmonary care through its proprietary technologies.
How the Company Makes MoneyPulmonx generates revenue primarily through the sale of its Zephyr Endobronchial Valve system to hospitals and healthcare providers. The company's revenue model is based on direct sales and distribution agreements with partners in various regions, including North America, Europe, and Asia Pacific. Additionally, Pulmonx may engage in strategic partnerships and collaborations with healthcare institutions to expand the adoption of its products and enhance market penetration. The company's financial performance is driven by the growing demand for minimally invasive treatments for lung diseases, as well as its efforts in expanding its sales network and increasing awareness among healthcare professionals.
Pulmonx Financial Statement Overview
Summary
Pulmonx is experiencing significant revenue growth, but continues to struggle with profitability. The balance sheet shows moderate strength with manageable leverage, though negative return on equity highlights profitability issues. Cash flow management is a challenge, requiring improvements to enhance liquidity.Income Statement
Pulmonx has demonstrated a consistent revenue growth with a 22% increase from 2023 to 2024. However, the company has been facing persistent losses, with a negative net profit margin of -67% in 2024. Gross profit margin stands strong at 74%, indicating efficient production compared to revenue. Nonetheless, negative EBIT and EBITDA margins highlight ongoing operational challenges.55
Neutral
Balance Sheet
Pulmonx maintains a stable balance sheet with an equity ratio of 53% in 2024, showing a reasonable proportion of assets financed by equity. The debt-to-equity ratio is 0.66, indicating manageable leverage levels. However, the negative return on equity (-66%) reflects the company's struggles to generate profit from its equity base.60
Neutral
Cash Flow
The company has shown a reduction in free cash flow deficit by about 14% year-over-year, indicating slight improvement in cash generation. However, the operating cash flow to net income ratio is negative, underscoring ongoing cash flow challenges. The free cash flow to net income ratio is also negative, indicating insufficient cash flow to cover net losses.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 83.79M | 68.67M | 53.66M | 48.42M | 32.73M | Gross Profit |
| 62.00M | 50.75M | 39.87M | 35.63M | 21.20M | EBIT |
| -57.70M | -61.94M | -58.64M | -47.30M | -32.33M | EBITDA |
| -57.70M | -55.09M | -55.99M | -46.62M | -28.44M | Net Income Common Stockholders |
| -56.39M | -60.84M | -58.92M | -48.66M | -32.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 101.48M | 117.10M | 141.14M | 180.04M | 231.56M | Total Assets |
| 162.85M | 177.78M | 193.68M | 235.17M | 263.71M | Total Debt |
| 56.47M | 41.42M | 24.40M | 26.46M | 27.22M | Net Debt |
| -14.43M | -42.12M | -77.33M | -122.02M | -204.34M | Total Liabilities |
| 77.04M | 59.47M | 39.67M | 41.93M | 37.57M | Stockholders Equity |
| 85.81M | 118.31M | 154.01M | 193.24M | 226.13M |
| Cash Flow | Free Cash Flow | |||
| -32.98M | -38.42M | -46.40M | -45.06M | -31.54M | Operating Cash Flow |
| -31.54M | -37.61M | -45.08M | -41.39M | -30.63M | Investing Cash Flow |
| 17.48M | -2.01M | -4.22M | -46.26M | 12.69M | Financing Cash Flow |
| 1.36M | 21.40M | 2.47M | 4.46M | 234.83M |
Pulmonx Technical Analysis
Negative
6.76
Price Trends
7.22
Negative
6.85
Negative
6.93
Negative
Market Momentum
-0.18
Positive
42.52
Neutral
23.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUNG, the sentiment is Negative. The current price of 6.76 is below the 20-day moving average (MA) of 7.20, below the 50-day MA of 7.22, and below the 200-day MA of 6.93, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 23.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LUNG.
Pulmonx Risk Analysis
Pulmonx disclosed 83 risk factors in its most recent earnings report. Pulmonx reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pulmonx Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $17.22B | 42.37 | 43.03% | ― | 22.07% | 101.95% | |
70 Outperform | $2.28B | 66.99 | 19.39% | ― | 82.74% | ― | |
69 Neutral | $4.22B | 81.87 | 8.48% | ― | 28.49% | ― | |
60 Neutral | $3.15B | ― | -75.27% | ― | 20.13% | 10.05% | |
51 Neutral | $269.02M | ― | -55.25% | ― | 22.01% | 10.02% | |
48 Neutral | $6.36B | 1.14 | -49.00% | 2.63% | 17.14% | 1.39% | |
43 Neutral | $1.81B | ― | -46.67% | ― | 18.82% | 19.76% |
* Healthcare Sector Average
Performance Comparison
LUNG
Pulmonx
6.76
-1.63
-19.43%
PODD
Insulet
245.26
75.22
44.24%
NVCR
NovoCure
16.49
2.31
16.29%
IRTC
Irhythm Technologies
100.34
-12.70
-11.23%
INSP
Inspire Medical Systems
141.93
-86.19
-37.78%
TMDX
TransMedics Group
67.67
-22.26
-24.75%
Pulmonx Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 1.81% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
Pulmonx demonstrated strong revenue growth and international expansion, with significant advancements in clinical trials and product innovation. However, increased operating expenses and persistent net losses highlight ongoing financial challenges. The future outlook includes strategic initiatives to sustain growth, but foreign exchange fluctuations pose a potential risk.Highlights
Strong Revenue Growth
Pulmonx reported worldwide sales of $23.8 million in Q4 2024, reflecting 23% growth over the same period last year. Full year 2024 worldwide revenue was $83.8 million, representing 22% growth over 2023.
Record International Sales
Record international sales of $7.9 million in Q4 2024, representing 42% growth year-over-year. Strong performance in key European markets and successful expansion in China.
Expansion of U.S. Account Base
Expanded U.S. account base with 52 new centers in 2024, ending the year with 283 active accounts in Q4.
Notable Clinical Trials and Studies
Launched AeriSeal CONVERT II Pivotal Trial and Japanese post-market study. Demonstrated successful conversion of collateral ventilation status in 77.6% of patients in AeriSeal CONVERT Trial.
Innovation and Product Launches
Introduced LungTrax platform and new Chartis Precision Catheter. Launched first U.S. TV commercial reaching over 11 million people.
Positive Financial Metrics
Gross margin for fiscal year 2024 was 74%, consistent with 2023. Adjusted EBITDA loss improved by 10% in Q4 2024 and by 20% for the full year.
Lowlights
Operating Expenses Increase
Total operating expenses for Q4 2024 were $31 million, an increase of 9% over the prior year period. Full year operating expenses increased by 6% over 2023.
Net Loss Persistence
Net loss for Q4 2024 was $13.2 million, slightly improved from a loss of $13.9 million in the same period of the prior year. Full year net loss was $56.4 million, a 7% improvement over 2023.
Impact of Foreign Exchange Fluctuations
Anticipated negative impact of approximately 100 basis points on reported revenue for 2025 due to foreign exchange fluctuations.
Company Guidance
During the Pulmonx Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for 2025, emphasizing expected revenue growth between $96 million and $98 million, reflecting a 16% to 18% growth rate on a constant currency basis. The company anticipates gross margins to remain approximately 74%, improving in the second half due to higher production volumes, geographic mix, and cost optimization initiatives. Operating expenses for the year are projected to range from $133 million to $135 million, including $22 million in non-cash stock-based compensation. Pulmonx aims to scale its initiatives in the first half of 2025, driving a re-acceleration of U.S. growth in the second half, while strong international growth is expected in the first half, followed by typical seasonality. The company remains committed to sustainable long-term growth of at least 20%.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.