Nephros (NEPH) AI Stock Analysis

• Market Cap: $55.12M
• Dividend Yield: N/A
• Average Volume (3M): 75.62K
• Price to Earnings (P/E): 41.6
• Beta (1Y): -0.36
• Revenue Growth: 32.36%
• EPS Growth: N/A
• Country: US
• Employees: 31
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.03
• Shares Outstanding: 10,600,604
• 10 Day Avg. Volume: 107,933
• 30 Day Avg. Volume: 75,620
• PEG Ratio: -2.00
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 1.09
• P/FCF Ratio: -28.29
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 3.56
• Enterprise Value/Ebitda: 24.42
• 1Y Price Target: $8.00
• Price Target Upside: 75.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: $5.50 ▲(20.61% Upside)

Nephros demonstrates strong earnings performance and technical momentum, which are the primary drivers of its stock score. While the financial performance shows potential, challenges in cash flow and valuation concerns slightly offset the positive outlook. The strategic focus on innovation and market expansion highlighted in the earnings call further supports a favorable view.

Positive Factors

Revenue Growth

The 35% revenue growth indicates strong demand for Nephros's products and successful market expansion efforts, supporting long-term business sustainability.

Profitability

Consistent profitability over multiple quarters demonstrates effective cost management and operational efficiency, enhancing financial stability.

Innovation in PFAS Filtration

Introducing PFAS filtration solutions diversifies Nephros's product offerings, tapping into new markets and ensuring long-term growth potential.

Negative Factors

Cash Flow Challenges

Negative cash flow from operations indicates potential liquidity issues, necessitating improved cash management to support ongoing operations.

Increased Operating Expenses

Rising operating expenses can pressure margins and profitability, requiring careful management to maintain financial health.

Impact of Tariffs on Margins

Tariff-related costs can erode profit margins, challenging Nephros to find efficiencies or price adjustments to sustain profitability.

Nephros Business Overview & Revenue Model

Company Description

Nephros, Inc. develops and sells high performance water solutions to the medical and commercial markets in the United States. The company operates in three segments: Water Filtration, Pathogen Detection, and Renal Products. It offers ultrafiltration products that are used in dialysis centers for the removal of biological contaminants from water and bicarbonate concentrate; and in hospitals for the prevention of infection from waterborne pathogens, such as legionella and pseudomonas, as well as in military and outdoor recreation, commercial, and other healthcare facilities. The company also develops and sells real-time water testing systems to provide actionable data on waterborne pathogens; and medical device products for patients with renal disease, including a 2nd generation hemodiafiltration system for the treatment of patients with end stage renal disease. In addition, it offers water filters that improve the taste and odor of water, as well as reduce biofilm, bacteria, and scale build-up in downstream equipment under the Nephros and AETHER brands for the food service, hospitality, convenience store, and health care markets. The company was incorporated in 1997 and is headquartered in South Orange, New Jersey.

How the Company Makes Money

Nephros generates revenue through multiple key streams. The primary source of income comes from the sale of its ultrafilters used in dialysis machines, which are essential for providing safe and effective treatment to patients with kidney disease. Additionally, the company offers water filtration systems, which are sold to healthcare facilities and foodservice providers to ensure compliance with health regulations and improve water quality. Nephros also engages in partnerships with dialysis centers and healthcare providers, which can lead to long-term contracts and recurring revenue. Furthermore, the company explores opportunities in research and development collaborations, as well as government grants, to support its innovative projects and expand its market reach.

Nephros Financial Statement Overview

Summary

Nephros is on a path to profitability with improving net income and gross margins. The company's low leverage and strong equity position provide financial stability. However, challenges remain in generating consistent revenue growth and positive cash flow, necessitating a focus on operational efficiency and cash management.

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	17.93M	14.16M	14.24M	9.97M	10.22M	8.56M
Gross Profit	11.34M	8.72M	8.40M	4.73M	5.63M	4.91M
EBITDA	1.65M	227.00K	-1.36M	-3.69M	-2.49M	-4.21M
Net Income	1.48M	74.00K	-1.57M	-7.38M	-4.11M	-4.77M
Balance Sheet
Total Assets	13.25M	11.21M	11.86M	11.00M	17.65M	18.51M
Cash, Cash Equivalents and Short-Term Investments	5.17M	3.76M	4.31M	3.63M	6.97M	8.25M
Total Debt	1.15M	1.41M	1.84M	1.09M	1.00M	2.17M
Total Liabilities	3.24M	2.63M	3.50M	2.12M	2.90M	2.94M
Stockholders Equity	10.01M	8.59M	8.36M	5.59M	11.70M	12.52M
Cash Flow
Free Cash Flow	2.72M	-547.00K	752.00K	-3.37M	-1.45M	-7.14M
Operating Cash Flow	2.72M	-492.00K	827.00K	-3.23M	-1.42M	-6.90M
Investing Cash Flow	0.00	-50.00K	-75.00K	-137.00K	-85.00K	-239.00K
Financing Cash Flow	-5.00K	-5.00K	-79.00K	34.00K	237.00K	11.22M

Nephros Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.56
• 50DMA: Negative
• 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 Negative. The current price of 4.56 is below the 20-day moving average (MA) of 5.13, below the 50-day MA of 4.81, and above the 200-day MA of 3.22, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 43.48 is Neutral, neither overbought nor oversold. The STOCH value of 32.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEPH.

Nephros Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEPH	70 Neutral	$55.12M	41.63	16.29%	―	32.36%	―
MHUA	65 Neutral	$7.33M	0.75	5.90%	―	-4.99%	-19.11%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HBIO	50 Neutral	$25.91M	―	-135.62%	―	-10.60%	-271.93%
RVP	48 Neutral	$25.18M	-2.81	-10.80%	―	-0.24%	50.45%
FEMY	45 Neutral	$41.39M	―	-329.45%	―	98.61%	-1.98%
MLSS	38 Underperform	$29.73M	-4.35	-123.50%	―	7.84%	-43.00%

Nephros Corporate Events

Nephros, Inc. Reports Strong Q3 2025 Earnings

Nephros, Inc. is a Delaware-based company specializing in high-performance water filtration solutions, primarily serving the medical and commercial sectors with a focus on infection control and dialysis water filtration. Their products are distinguished by FDA 510(k) clearance, ensuring safety and performance in critical environments.

Nephros, Inc. Reports Strong Q2 2025 Financial Results

Nephros, Inc. is a leading water technology company that specializes in providing filtration solutions to the medical and commercial markets, focusing on improving water safety through innovative products and services.