Nephros (NEPH) AI Stock Analysis

• Market Cap: $42.72M
• Dividend Yield: N/A
• Average Volume (3M): 59.76K
• Price to Earnings (P/E): 52.7
• Beta (1Y): -0.44
• Revenue Growth: 10.34%
• EPS Growth: N/A
• Country: US
• Employees: 31
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.05
• Shares Outstanding: 10,600,350
• 10 Day Avg. Volume: 77,880
• 30 Day Avg. Volume: 59,763
• PEG Ratio: -0.02
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.54
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.97
• Enterprise Value/Ebitda: -15.02
• 1Y Price Target: $4.50
• Price Target Upside: 13.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: $4.50 ▲(13.07%Upside)

The stock's score is primarily driven by its strong technical performance, with bullish market momentum as a key factor. Financial performance shows a positive trajectory towards profitability, but challenges in revenue consistency and cash flow persist. The high P/E ratio indicates potential overvaluation, warranting caution for valuation-sensitive investors.

Positive Factors

Customer Base Expansion

NEPH added roughly 100 new Active Customer Sites, showing growth in its customer base.

Financial Performance

NEPH reported results with revenue, gross margin, and GAAP EPS above consensus and estimates, indicating strong financial performance.

Negative Factors

Cash Flow

NEPH is expected to be cash flow positive on an annualized basis in 2025, but current cash and equivalents are limited at $4.1M.

Nephros Business Overview & Revenue Model

Company Description

Nephros (NEPH) is a medical device company specializing in developing and marketing high-performance water purification and filtration solutions. The company primarily serves the healthcare, dialysis, and commercial markets, providing products that help reduce the risk of infection and improve water quality. Nephros is known for its innovative filtration technologies, which are utilized in various settings to ensure safe and clean water is accessible for diverse applications.

How the Company Makes Money

Nephros generates revenue through the sale of its water filtration and purification products. The company's primary revenue streams include direct sales to healthcare facilities, dialysis centers, and commercial entities. Nephros also engages in partnerships and distribution agreements to expand its market reach and enhance product availability. Revenue is further supported by repeat sales of consumable filter cartridges, which require regular replacement to maintain optimal filtration performance. The company's focus on innovation and quality positions it to effectively serve industries where water purity is critical.

Nephros Financial Statement Overview

Summary

Nephros is transitioning to profitability with improving net income and gross margins. The company has a strong balance sheet with low leverage, but faces challenges with negative cash flow and declining revenue, requiring improvements in operational efficiency.

Income Statement

Nephros has shown improvements in net income, transitioning from a loss in previous years to a profit in the most recent year. The gross profit margin increased from 57% to 62%, indicating improved cost efficiency. However, revenue has slightly decreased over the past year, and EBIT and EBITDA margins remain thin, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.16, indicating low leverage. The equity ratio remains strong at 76.6%, reflecting a solid capital structure. Despite declining total assets, the company's liabilities have decreased, enhancing financial stability.

Cash Flow

Cash flow from operations turned negative this year, reversing from a positive position last year. Free cash flow growth was negative, indicating a need for better cash management. The operating cash flow to net income ratio is unfavorable, suggesting room for improvement in cash generation relative to profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.52M	14.16M	14.24M	9.97M	10.22M	8.56M
Gross Profit	9.69M	8.72M	8.40M	4.73M	5.63M	4.91M
EBITDA	967.00K	227.00K	-1.36M	-3.69M	-2.49M	-4.21M
Net Income	801.00K	74.00K	-1.57M	-4.55M	-4.11M	-4.77M
Balance Sheet
Total Assets	11.78M	11.21M	11.86M	11.00M	17.65M	18.51M
Cash, Cash Equivalents and Short-Term Investments	4.08M	3.76M	4.31M	3.63M	6.97M	8.25M
Total Debt	1.33M	1.41M	1.84M	1.09M	1.12M	2.17M
Total Liabilities	2.49M	2.63M	3.50M	2.12M	2.90M	2.94M
Stockholders Equity	9.29M	8.59M	8.36M	5.59M	11.70M	12.52M
Cash Flow
Free Cash Flow	447.00K	-547.00K	752.00K	-3.37M	-1.45M	-7.14M
Operating Cash Flow	502.00K	-492.00K	827.00K	-3.23M	-1.42M	-6.90M
Investing Cash Flow	-50.00K	-50.00K	-75.00K	-137.00K	-85.00K	-239.00K
Financing Cash Flow	-4.00K	-5.00K	-79.00K	34.00K	237.00K	11.22M

Nephros Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEPH, the sentiment is Positive. The current price of 3.98 is above the 20-day moving average (MA) of 3.87, above the 50-day MA of 2.87, and above the 200-day MA of 1.92, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 56.77 is Neutral, neither overbought nor oversold. The STOCH value of 39.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEPH.

Nephros Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEPH	61 Neutral	$42.72M	52.72	9.17%	―	10.34%	―
POCI	56 Neutral	$37.72M	―	-47.37%	―	-9.20%	-232.02%
HBIO	48 Neutral	$19.83M	―	-138.80%	―	-14.41%	-549.88%
RVP	46 Neutral	$19.16M	―	-25.89%	―	-16.05%	-195.28%
Sector *	46 Neutral	C$192.85M	-4.28	-8.56%	2.83%	13.52%	-1.74%
MLSS	44 Neutral	$50.12M	―	-88.36%	―	-9.13%	30.04%
FEMY	44 Neutral	$27.33M	―	-239.87%	―	61.97%	-6.89%

Nephros Corporate Events

Nephros Holds Annual Stockholders Meeting June 2025

On June 16, 2025, Nephros, Inc. conducted its Annual Meeting of Stockholders where several key decisions were made. Stockholders elected Lisa Nettis to the Board of Directors for a term ending in 2028, ratified Baker Tilly US, LLP as the independent public accounting firm for 2025, and approved the executive officers’ compensation on a non-binding basis. These decisions reflect the company’s ongoing governance and operational strategies.

The most recent analyst rating on (NEPH) stock is a Buy with a $4.50 price target. To see the full list of analyst forecasts on Nephros stock, see the NEPH Stock Forecast page.

Nephros Board Member Alisa Lask to Step Down

On April 23, 2025, Alisa Lask informed Nephros, Inc. that she will not seek re-election to the Board of Directors at the upcoming annual stockholders meeting on June 16, 2025. Her decision is not due to any disagreements with the company’s operations or policies.