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908 Devices (MASS)
NASDAQ:MASS
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908 Devices
(NASDAQ:MASS)
57Neutral
Positive Factors
Financial Performance
908 Devices Inc. reported preliminary first-quarter revenue that exceeded analyst and market expectations.
Strategic Focus
The divestiture of the Desktop business to RGEN reduces exposure to pharma headwinds and aligns MASS with growing spending on border security and defense.
Negative Factors
Market Uncertainty
The stock trades at a significantly lower multiple compared to peers, suggesting potential undervaluation.
Revenue Predictability
The Handheld business remains only 1/3rd recurring, adding to unpredictable or lumpy revenues, particularly in an environment with significant policy uncertainty.
908 Devices (MASS) vs. S&P 500 (SPY)
Market Cap
$191.84M
Dividend YieldN/A
Average Volume (3M)630.19K
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth18.72%
EPS Growth-86.45%
CountryUS
Employees246
SectorHealthcare
Sector Strength70
IndustryMedical - Devices
Share Statistics
EPS (TTM)-2.11
Shares Outstanding35,329,994
10 Day Avg. Volume554,660
30 Day Avg. Volume630,194
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.07
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit0.44
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside10.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
908 Devices Business Overview & Revenue Model
Company Description908 Devices Inc., a commercial-stage technology company, provides various purpose-built handheld and desktop mass spectrometry (Mass Spec) devices to interrogate unknown and invisible materials in life sciences research, bioprocessing, industrial biotech, forensics, and adjacent markets. The company's products include MX908, a handheld, battery-powered, and Mass Spec device that is designed for rapid analysis of gas, liquid, and solid materials of unknown identity; Rebel, a small desktop analyzer that provides real-time information on the extracellular environment in bioprocesses; and ZipChip solution, a plug-and-play, high-resolution separation platform that optimizes Mass Spec sample analysis. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 2012 and is headquartered in Boston, Massachusetts.
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
Positive
5.43
Price Trends
3.93
Positive
3.14
Positive
3.48
Positive
Market Momentum
0.45
Negative
65.22
Neutral
67.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MASS, the sentiment is Positive. The current price of 5.43 is above the 20-day moving average (MA) of 4.59, above the 50-day MA of 3.93, and above the 200-day MA of 3.48, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 65.22 is Neutral, neither overbought nor oversold. The STOCH value of 67.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $6.01B | 52.43 | 7.16% | 0.50% | 13.56% | -73.92% | |
57 Neutral | $191.84M | ― | -51.56% | ― | 18.72% | -86.45% | |
54 Neutral | $2.04B | 32.67 | 4.87% | ― | 8.33% | 256.54% | |
52 Neutral | $5.38B | 3.59 | -41.63% | 2.87% | 17.72% | 1.87% | |
51 Neutral | $208.88M | ― | -55.25% | ― | 22.01% | 10.02% | |
50 Neutral | $165.56M | ― | 271.41% | ― | 169.66% | 28.89% | |
48 Neutral | $568.44M | ― | -37.28% | ― | 24.51% | 47.32% |
* Healthcare Sector Average
Performance Comparison
MASS
908 Devices
5.43
-0.24
-4.23%
BRKR
Bruker
39.35
-30.50
-43.66%
LIVN
LivaNova
36.79
-26.13
-41.53%
BFLY
Butterfly Network
2.34
1.42
154.35%
LUNG
Pulmonx
3.77
-5.61
-59.81%
TLSI
TriSalus Life Sciences
5.13
-4.21
-45.07%
908 Devices Earnings Call Summary
Earnings Call Date:Mar 04, 2025
(Q3-2024)
| % Change Since: 174.24%|
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.Q3-2024 Updates
Positive Updates
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.
Negative Updates
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.