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Milestone Scientific (MLSS)
:MLSS
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Milestone Scientific
(NYSE MKT:MLSS)
55Neutral
Positive Factors
Earnings Potential
The Medicare price assignment marks a significant milestone for the company, and should enable broader access and adoption of the technology within the pain management community.
Financial Stability
As of June 30, 2024, MLSS had cash and equivalents of $5.8M and no debt, with an expected average cash burn of $0.1M per quarter through 2025, indicating financial stability.
Strategic Partnerships
The strategic partnership with Axial Biologics is off to a strong start, generating roughly 40 high-quality leads and a robust pipeline of pain clinics in trials across multiple states.
Negative Factors
Earnings Performance
Revenue was slightly below consensus, and the GAAP loss per share was slightly wider than expected.
Market Expansion Challenges
MLSS is advancing discussions with four additional JMAC regions to expand coverage beyond the initial three, which is viewed as a step towards receiving broad reimbursement.
Milestone Scientific (MLSS) vs. S&P 500 (SPY)
Market Cap
$71.66M
Dividend YieldN/A
Average Volume (3M)91.95K
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth-9.49%
EPS Growth39.20%
CountryUS
Employees17
SectorHealthcare
Sector Strength79
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.06
Shares Outstanding77,892,080
10 Day Avg. Volume75,175
30 Day Avg. Volume91,946
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.86
Price to Cash Flow (P/CF)-20.20
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
$3.00Price Target Upside244.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Milestone Scientific Business Overview & Revenue Model
Company DescriptionMilestone Scientific Inc. (MLSS) is a technology-driven medical research and development company that primarily focuses on innovative injection and drug delivery systems. The company operates in the healthcare sector, offering products designed to improve patient comfort and safety during medical and dental procedures. Its flagship product is the CompuFlo® Epidural Instrument, which provides real-time pressure sensing technology to aid in the accurate administration of epidural injections.
How the Company Makes MoneyMilestone Scientific generates revenue primarily through the sale and licensing of its proprietary injection and drug delivery systems. The company sells its products directly to healthcare providers, including hospitals and dental clinics, and through a network of distributors. Revenue streams also include licensing agreements where Milestone Scientific licenses its technology to third-party manufacturers, allowing them to incorporate the proprietary systems into their own medical devices. Additionally, strategic partnerships with medical device companies and research institutions contribute to the company's earnings by expanding its market reach and facilitating the development of new applications for its technology.
Milestone Scientific Financial Statement Overview
Summary
Milestone Scientific faces financial challenges with declining revenues and negative profitability, as reflected in a low Income Statement Score. Despite a strong gross profit margin and low leverage, negative cash flow metrics and financial inefficiencies weigh heavily on overall financial performance.Income Statement
The company has been experiencing declining revenues with a revenue decrease of 9.67% from 2023 to TTM (Trailing-Twelve-Months). Gross profit margin for TTM remains relatively strong at 72.21%, but net profit margin is negative due to consistent net losses. The company struggles with EBIT and EBITDA margins, both of which are negative, indicating operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 0.04 for TTM, indicating low leverage. However, return on equity is negative, reflecting the company's inability to generate profit from shareholder investments. The equity ratio is favorable at 64.62%, suggesting a strong equity position relative to its assets.55
Neutral
Cash Flow
Cash flow analysis reveals challenges with negative free cash flow and inconsistent free cash flow growth rates. Operating cash flow to net income ratio is negative, indicating that the company is not converting its operations into cash effectively. Despite positive financing cash flow, the overall cash position is weakening.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 8.88M | 9.83M | 8.81M | 10.30M | 5.44M | 8.37M | Gross Profit |
| 6.41M | 6.79M | 4.90M | 6.31M | 3.62M | 5.72M | EBIT |
| -6.69M | -7.11M | -8.83M | -7.38M | -7.45M | -4.00M | EBITDA |
| -6.59M | -6.96M | -8.68M | -7.30M | -7.36M | -3.90M | Net Income Common Stockholders |
| -4.62M | -6.93M | -8.71M | -7.12M | -7.49M | -7.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 743.43K | 5.95M | 8.72M | 14.76M | 14.22M | 1.52M | Total Assets |
| 6.40M | 11.37M | 13.70M | 19.81M | 19.57M | 6.56M | Total Debt |
| 0.00 | 395.98K | 497.04K | 586.59K | 942.60K | 15.98K | Net Debt |
| -743.43K | -2.58M | -8.22M | -14.18M | -13.28M | -1.50M | Total Liabilities |
| 4.87M | 3.36M | 3.70M | 3.59M | 3.46M | 4.93M | Stockholders Equity |
| 1.54M | 8.01M | 10.23M | 16.37M | 16.20M | 1.70M |
| Cash Flow | Free Cash Flow | ||||
| -2.66M | -5.33M | -6.04M | -4.03M | -7.01M | -1.79M | Operating Cash Flow |
| -2.65M | -5.33M | -6.03M | -4.02M | -6.98M | -1.78M | Investing Cash Flow |
| 2.46M | -2.97M | -8.53K | -15.19K | -21.44K | -9.92K | Financing Cash Flow |
| 2.80M | 2.56M | -8.54K | 4.57M | 19.71M | 2.56M |
Milestone Scientific Technical Analysis
Negative
0.87
Price Trends
1.08
Negative
0.99
Negative
0.94
Negative
Market Momentum
-0.02
Negative
44.96
Neutral
28.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MLSS, the sentiment is Negative. The current price of 0.87 is below the 20-day moving average (MA) of 0.96, below the 50-day MA of 1.08, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 44.96 is Neutral, neither overbought nor oversold. The STOCH value of 28.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MLSS.
Milestone Scientific Risk Analysis
Milestone Scientific disclosed 34 risk factors in its most recent earnings report. Milestone Scientific 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
Milestone Scientific Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $21.75B | 46.95 | 9.61% | 1.01% | -0.17% | -17.34% | |
73 Outperform | $177.21B | 70.41 | 15.62% | ― | 17.24% | 27.76% | |
59 Neutral | $143.59M | ― | -144.19% | ― | 0.55% | -8.47% | |
55 Neutral | $71.66M | ― | -63.82% | ― | -9.49% | 39.20% | |
49 Neutral | $15.95M | ― | -153.37% | ― | -6.17% | 8.27% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
36 Underperform | $240.21K | ― | ― | -32.57% | -15.03% |
* Healthcare Sector Average
Performance Comparison
MLSS
Milestone Scientific
0.87
0.25
40.32%
CUTRQ
Cutera
0.01
-1.55
-99.36%
ISRG
Intuitive Surgical
451.58
63.19
16.27%
IRIX
Iridex
0.86
-2.21
-71.99%
STXS
Stereotaxis
1.66
-1.54
-48.13%
STE
Steris
212.61
1.23
0.58%
Milestone Scientific Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: 27.94% | Next Earnings Date: Apr 7, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant revenue growth in the third quarter, strong gross margins, and strategic progress in the medical division with Medicare Part B alignment. However, concerns remain with the lack of revenue from China and an overall revenue decline over the nine-month period. Despite these challenges, the company seems well-positioned for future growth, particularly in international markets.Highlights
Significant Revenue Growth
Milestone Scientific achieved a 22% increase in year-over-year revenue, reaching $2.5 million, driven by strong growth in the Dental division and a 57% increase in international dental sales.
Strong Gross Margin
Gross margins remained high at 73%, indicating strong profitability from operations.
Medicare Part B Assignment for CompuFlo
The CompuFlo Epidural System received a Medicare Part B physician payment rate assignment, increasing its adoption in clinics such as Hudson Specialty Care and iHealPain Center.
Expansion into International Markets
Regulatory approval was secured in Brazil for the CompuFlo system, opening a significant market opportunity with over 2.8 million births annually.
Improvement in Operating Loss
Operating loss decreased by $38,000 compared to the previous year, showing financial management improvements.
Lowlights
No Revenue from China
The company recorded no revenue from China for the three months ending September 30, 2024, indicating challenges in that market.
Overall Revenue Decline for Nine Months
Revenue for the nine months ending September 30, 2024, was $6.6 million, down from $7.6 million for the same period in 2023.
International Revenue Decrease Over Nine Months
International revenue decreased by $0.6 million for the nine months ending September 30, 2024, compared to the same period in 2023, due to freight forward carrier issues.
Company Guidance
In the Q3 2024 earnings call for Milestone Scientific (MLSS), the company reported a 22% year-over-year revenue increase to $2.5 million, driven by a 57% rise in international dental sales and a successful shift to an e-commerce sales model domestically. Gross margins remained high at 73%. The medical division made progress with the CompuFlo Epidural System, benefiting from a Medicare Part B payment rate assignment across several regions, including New Jersey, Texas, and Florida. The company highlighted a significant market opportunity with 3 million epidural procedures annually in these regions, representing a $250 million market potential. Additionally, the company secured regulatory approval in Brazil, targeting over 2.8 million annual births and a substantial population with chronic back pain, marking a promising growth avenue for the company. Internationally, MLSS is expanding its reach through partnerships with distributors in key markets. The call also noted a 11.4% growth in the U.S. e-commerce dental business over nine months, and the company maintained a strong balance sheet with $4.8 million in cash and no long-term debt.Milestone Scientific Corporate Events
Executive/Board Changes
Milestone Scientific Director Resigns Amid Personal Reasons
Neutral
Jan 13, 2025
Mr. Giandomenico Trombetta, a director at Milestone Scientific Inc., has resigned from the board effective immediately due to personal reasons and other pressing matters. His departure is not due to any disagreements with the company’s operations, finances, policies, or practices, suggesting a stable operational outlook despite the leadership change.
Executive/Board ChangesBusiness Operations and Strategy
Milestone Scientific Announces Leadership Transition and Future Plans
Neutral
Nov 14, 2024
Milestone Scientific Inc. announced the retirement of CEO Arjan Haverhals, effective December 31, 2024, as he seeks to spend more time with his family and pursue personal interests. Neal Goldman, Chairman of the Board, will serve as Interim CEO while an independent search firm identifies a permanent successor. Haverhals will remain a director and consultant, ensuring a smooth leadership transition. The company aims to accelerate the commercialization of its CompuFlo® Epidural System, building on the solid foundation established under Haverhals’ leadership.
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.