Education
About Us
Working with TipRanks
Follow Us
908 Devices (MASS)
NASDAQ:MASS
Top Page
908 Devices
(NASDAQ:MASS)
56Neutral
Positive Factors
Market Positioning
908 Devices is uniquely positioned to benefit from the increased commitment to addressing the fentanyl crisis, carcinogens, and overall security concerns.
Strategic Focus
The divestment of bioprocessing desktop assets increases the company's focus on its faster-growing and more profitable handheld portfolio.
Valuation Opportunity
The company's valuation is at 0.7 times sales, significantly lower than the peer average, which presents a potential investment opportunity.
Negative Factors
Financial Concerns
The company had a roughly $20 million operating loss.
Funding and Demand Recovery
The analyst remains cautious until there is greater confidence in the funding outlook and demand recovery for handheld devices.
Market Headwinds
The bioprocessing environment has been challenging and 908 had subscale commercial infrastructure at a time when its products still required evangelization.
908 Devices (MASS) vs. S&P 500 (SPY)
Market Cap
$132.13M
Dividend YieldN/A
Average Volume (3M)5.57M
Price to Earnings (P/E)―
Beta (1Y)1.62
Revenue Growth18.72%
EPS Growth-86.45%
CountryUS
Employees246
SectorHealthcare
Sector Strength79
IndustryMedical - Devices
Share Statistics
EPS (TTM)-2.11
Shares Outstanding35,329,994
10 Day Avg. Volume814,379
30 Day Avg. Volume5,565,009
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.68
Price to Cash Flow (P/CF)-17.80
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
$5.67Price Target Upside51.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
908 Devices Business Overview & Revenue Model
Company Description908 Devices (MASS) is a pioneering technology company that specializes in designing and manufacturing innovative analytical devices for chemical and biochemical analysis. The company operates primarily in the life sciences, forensics, and industrial markets, offering a suite of portable and desktop mass spectrometry tools. 908 Devices' core products include handheld devices and desktop analyzers that enable rapid and precise analysis of complex chemical mixtures, making them invaluable for applications in pharmaceuticals, security, and environmental monitoring.
How the Company Makes Money908 Devices generates revenue primarily through the sale of its specialized mass spectrometry devices. The company's key revenue streams include direct sales to customers in diverse sectors such as pharmaceuticals, public safety, and industrial processing. Additionally, they may earn from service contracts, maintenance, and support services associated with their devices. The company benefits from partnerships with research institutions and industrial organizations, which help in driving adoption and expanding market presence. Significant factors contributing to its earnings include the growing demand for portable analytical tools and the increasing emphasis on safety and compliance in various industries.
908 Devices Financial Statement Overview
Summary
908 Devices shows robust revenue growth in the medical equipment industry, yet struggles with profitability and cash flow generation. The balance sheet remains strong with low leverage and substantial equity, mitigating some financial risks. Continuous net losses and negative cash flows are areas of concern that need addressing for long-term sustainability.Income Statement
The company shows consistent revenue growth with the latest year seeing a 18.7% increase from 2023 to 2024. However, profitability remains a challenge, with a negative EBIT margin of -128.6% and a net profit margin of -121.1% in 2024. These figures indicate high expenses relative to revenue, impacting overall profitability.55
Neutral
Balance Sheet
The company maintains a strong equity position, with an equity ratio of 71.9% in 2024, suggesting financial stability. However, the return on equity is negative due to ongoing net losses. Debt levels are low, with a debt-to-equity ratio of 0.06, minimizing financial risk.60
Neutral
Cash Flow
Operating cash flows are negative, indicating challenges in generating cash from core operations. Free cash flow growth was negative, with a decline of 13.8% from 2023 to 2024. This highlights cash flow management issues despite having a substantial cash reserve.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 59.63M | 50.23M | 46.85M | 42.21M | 26.89M | Gross Profit |
| 29.86M | 25.32M | 26.02M | 23.23M | 14.92M | EBIT |
| -76.72M | -42.76M | -35.38M | -22.07M | -5.82M | EBITDA |
| -67.81M | -34.02M | -31.82M | -20.94M | -11.01M | Net Income Common Stockholders |
| -72.21M | -36.40M | -31.74M | -22.12M | -6.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 69.60M | 145.68M | 188.42M | 224.07M | 159.23M | Total Assets |
| 159.48M | 202.98M | 242.59M | 260.91M | 178.83M | Total Debt |
| 6.61M | 5.95M | 16.47M | 20.85M | 21.86M | Net Debt |
| -37.42M | -115.10M | -171.95M | -203.22M | -137.37M | Total Liabilities |
| 44.88M | 37.49M | 51.99M | 46.30M | 39.79M | Stockholders Equity |
| 114.59M | 165.49M | 190.60M | 214.60M | 139.04M |
| Cash Flow | Free Cash Flow | |||
| -30.85M | -27.10M | -22.98M | -29.82M | 4.12M | Operating Cash Flow |
| -30.25M | -25.06M | -20.93M | -29.08M | 4.13M | Investing Cash Flow |
| -46.32M | -26.40M | -15.81M | -737.00K | -9.00K | Financing Cash Flow |
| -376.00K | -15.94M | 1.18M | 94.72M | 137.19M |
908 Devices Technical Analysis
Negative
3.74
Price Trends
3.17
Positive
2.80
Positive
3.51
Positive
Market Momentum
0.34
Positive
55.04
Neutral
42.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MASS, the sentiment is Negative. The current price of 3.74 is below the 20-day moving average (MA) of 4.07, above the 50-day MA of 3.17, and above the 200-day MA of 3.51, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 55.04 is Neutral, neither overbought nor oversold. The STOCH value of 42.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MASS.
908 Devices Risk Analysis
908 Devices disclosed 67 risk factors in its most recent earnings report. 908 Devices 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
908 Devices Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $20.50B | 32.21 | 42.82% | ― | 0.07% | -1.20% | |
70 Outperform | $177.32B | 28.42 | 13.15% | 0.34% | 0.05% | 6.87% | |
68 Neutral | $31.27B | 25.20 | 20.61% | 0.87% | -3.00% | 3.67% | |
58 Neutral | $5.71B | 49.78 | 7.16% | 0.53% | 13.56% | -73.92% | |
56 Neutral | $132.13M | ― | -51.56% | ― | 18.72% | -86.45% | |
49 Neutral | $12.10B | ― | -30.11% | ― | -2.93% | -4.69% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% |
* Healthcare Sector Average
Performance Comparison
MASS
908 Devices
3.81
-2.78
-42.19%
A
Agilent
103.00
-40.39
-28.17%
BRKR
Bruker
36.46
-53.46
-59.45%
ILMN
Illumina
74.16
-52.30
-41.36%
TMO
Thermo Fisher
437.91
-139.21
-24.12%
WAT
Waters
324.92
-14.12
-4.16%
908 Devices Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: 88.89% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with notable revenue growth and successful integration of RedWave Technology but was overshadowed by financial results falling short of expectations, lowered revenue guidance, and a significant goodwill impairment charge. Cost-saving measures and strategic adjustments are in place, yet market softness and governmental delays pose challenges.Highlights
Revenue Increase
Revenue for Q3 2024 was $16.8 million, a 17% increase from the prior year period, driven primarily by an increase in handheld device revenue.
Successful Integration of RedWave Technology
The acquisition of RedWave Technology has been integrated successfully, contributing approximately $3.2 million to revenue and offering potential for cost efficiencies and margin expansion.
Handheld Device Growth
178 handheld devices were shipped in Q3, up from 117 in Q3 2023, bringing the installed base to 2,796, showing a 20% growth excluding AVCAD and RedWave contributions.
Cost Reduction Initiatives
Structural adjustments, including moving manufacturing to lower-cost locations and a workforce reduction of 11%, are expected to save approximately $6.6 million annually.
Strong Handheld Market Penetration
New enterprise accounts include the Vietnam Border Guard, EU Drug Detect program, and U.S. National Guard Bureau Counter Drug Program.
Lowlights
Financial Results Below Expectations
Financial results fell short of expectations due to a compressed spending period and delays in international contracts.
Lowered Revenue Guidance
2024 revenue guidance was lowered to $56-58 million, representing 11-15% growth, due to muted spending and delayed U.S. government fiscal year-end opportunities.
Gross Margin Decline
Gross margin was 50% in Q3 2024, down from 55% in the prior year period, impacted by a higher mix of service revenue.
Significant Operating Expenses
A $30.5 million noncash goodwill impairment charge contributed to a $29.3 million net loss for Q3 2024.
Softness in Life Science Instrumentation
Continued softness in the bioprocessing and life science instrumentation market elongated the sales cycle for desktop devices.
Company Guidance
In the third quarter of 2024, 908 Devices reported revenue of $16.8 million, marking a 17% increase from the previous year, driven by a rise in handheld device sales, specifically 178 units, compared to 117 the prior year. Despite this growth, the company adjusted its full-year revenue guidance to $56 million to $58 million, representing an 11% to 15% increase, due to a delayed recovery in demand and governmental budget constraints. Gross margin was 50%, down from 55% last year, attributed to shifts in service revenue and manufacturing variances. The company experienced a net loss of $29.3 million, influenced by a $30.5 million non-cash goodwill impairment charge and stock-based compensation, but maintained $71.7 million in cash, cash equivalents, and marketable securities by the end of the quarter. To counteract market challenges, 908 Devices is pursuing operational adjustments, including relocating manufacturing to lower-cost locations, reducing workforce by 11% to save $4.2 million annually, and enhancing sales strategies to boost efficiency and growth.908 Devices Corporate Events
Business Operations and StrategyFinancial Disclosures
908 Devices Restructures for Cost Efficiency and Growth
Neutral
Nov 12, 2024
908 Devices is undergoing a strategic shift by relocating its manufacturing operations from Boston to North Carolina and Connecticut, aiming for $2.4 million annual cost savings starting 2026. Concurrently, the company is implementing an 11% workforce reduction to streamline operations amid current market challenges, projected to save $4.2 million annually. Despite a 17% revenue growth in Q3 2024, driven by new handheld products, financial hurdles persist due to budget delays and market softness. These measures are part of broader efforts to enhance efficiency and capitalize on emerging growth opportunities.
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.