Nephros (NEPH) AI Stock Analysis

• Market Cap: $46.86M
• Dividend Yield: N/A
• Average Volume (3M): 75.62K
• Price to Earnings (P/E): 31.9
• Beta (1Y): -0.51
• 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: 10,626,683
• 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: 0.86
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 3.56
• Enterprise Value/Ebitda: 24.42
• 1Y Price Target: $8.00
• Price Target Upside: 59.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $5.00 ▼(-0.20% Downside)

The score is driven primarily by improved financial performance (profitability and cash flow turnaround with low leverage) and a strong, growth-focused earnings update. These positives are moderated by weak technical momentum (below key moving averages, negative MACD) and a relatively high P/E valuation with no dividend yield provided.

Positive Factors

Cash Generation Turnaround

The shift to positive operating and free cash flow (~$2.7M TTM) is a durable fundamental improvement. Sustained FCF supports reinvestment in R&D, inventory for consumables, and commercialization, reducing reliance on external financing and improving long-term financial flexibility.

Conservative Balance Sheet

Very low leverage (debt-to-equity ~0.12) and growing equity provide structural resilience. This conservative capital structure gives capacity to fund market expansion, absorb tariff or cost shocks, and pursue OEM/license partnerships without compromising liquidity or forcing dilutive financing.

Product & Market Diversification

Introducing a PFAS removal solution and targeting municipalities, labs and OEM channels materially widens addressable markets beyond dialysis. Diversified end-markets and new product lines support recurring consumable demand and reduce reliance on single-market cycles over the medium term.

Negative Factors

Thin Profitability

Although profitability returned, margins remain modest (operating ~6.6%, net ~8.3%) and the company has several recent loss-making years. Modest margins leave long-term earnings vulnerable to input-cost increases or demand softness, risking quick reversals of profitability.

Rising Opex and Tariff Pressure

Higher R&D and SG&A (sales commissions, bonuses) plus tariff-related inventory handling costs have prevented gross margin expansion. Persistent elevated operating costs or ongoing tariff exposure could erode the thin profit margins and weaken cash generation durability.

Durability Risk from Historical Volatility

Recent financial improvement follows periods of losses and negative cash flow, indicating operational volatility. With a relatively small scale and history of swings, future macro, reimbursement or demand shifts could undo progress, making consistency of results a material medium-term risk.

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 the sale of its proprietary products, which include water filtration systems and dialysis-related devices. The company's revenue model is based on direct sales to hospitals, dialysis centers, and healthcare providers, as well as recurring revenue from consumables associated with its filtration systems. Key revenue streams include the sale of both capital equipment and ongoing consumable products, contributing to a steady income flow. Additionally, partnerships with healthcare institutions and collaborations with other medical device manufacturers play a significant role in expanding its market reach and driving sales.

Nephros Financial Statement Overview

Summary

Nephros has shown improvements in net income and gross profit margins, indicating better cost efficiency. However, revenue has slightly decreased, and cash flow from operations turned negative, highlighting challenges in 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: 5.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 5.01 is above the 20-day moving average (MA) of 4.87, above the 50-day MA of 4.99, and above the 200-day MA of 3.94, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 5.69 is Positive, 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	69 Neutral	$46.86M	31.93	16.29%	―	32.36%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
HBIO	49 Neutral	$25.19M	-0.46	-135.62%	―	-10.60%	-271.93%
RVP	48 Neutral	$21.55M	-3.23	-8.05%	―	-0.95%	58.17%
MLSS	42 Neutral	$22.76M	-3.50	-136.47%	―	0.59%	-39.76%
FEMY	41 Neutral	$41.06M	-0.96	-376.23%	―	63.53%	12.49%

Nephros Corporate Events

Nephros Enters New License Agreement with Medica

On November 21, 2025, Nephros, Inc. entered into a new license and supply agreement with Medica S.p.A. to market and sell filtration products based on Medica’s ultrafiltration technology, replacing a prior agreement from December 2023. This agreement, effective through December 31, 2030, involves exclusive licensing rights, minimum annual purchase commitments, and mutual termination clauses, potentially impacting Nephros’s market positioning and operational strategy.

The most recent analyst rating on (NEPH) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Nephros stock, see the NEPH Stock Forecast page.