Nuwellis (NUWE) AI Stock Analysis

• Market Cap: $4.37M
• Dividend Yield: N/A
• Average Volume (3M): 67.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: -1.40%
• EPS Growth: 91.79%
• Country: US
• Employees: 38
• Sector: Healthcare
• Sector Strength: 69
• Industry: Medical - Devices
• EPS (TTM): -38.64
• Shares Outstanding: 4,373,986
• 10 Day Avg. Volume: 41,355
• 30 Day Avg. Volume: 67,250
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.55
• Price to Cash Flow (P/CF): -0.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.00
• Price Target Upside: 1200.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Nuwellis receives a moderate overall score due to significant financial challenges and valuation concerns. While the company has made strategic moves to improve its market position, including a focus on critical care and pediatrics, the consistent financial losses and negative cash flows weigh heavily on its outlook. Technical indicators suggest cautious market sentiment, and the earnings call highlights both positive strategic initiatives and underlying revenue challenges. The company must focus on achieving profitability to improve investor confidence.

Positive Factors

Pediatric Revenue

Strong growth in Pediatric revenue, up 28% year-over-year, following the addition of three new accounts during the quarter.

Reimbursement

The CMS will reassign the Aquadex ultrafiltration code to increase reimbursement rates, which should provide a profitable reimbursement pathway and expand the number of patients who can receive the therapy.

Revenue Growth

The slight revenue beat in 2Q24 is a positive sign that the company is expanding its presence within the medical system and driving increased utilization of consumables.

Negative Factors

Cash Flow

Even with the higher reimbursement rates, the company is not expected to operate on a positive cash flow basis through at least 2026.

Pediatric Utilization

The y/y decline in the quarter in pediatric utilization gives some concern.

Profitability

The timeline towards profitability remains unclear, likely requiring additional dilutive capital raises, which dampens the investment outlook.

Nuwellis Business Overview & Revenue Model

Company Description

Nuwellis, Inc., a medical device company, focuses on developing, manufacturing, and commercializing medical devices used in ultrafiltration therapy. The company's products are the Aquadex FlexFlow and Aquadex SmartFlow systems, which are indicated for the treatment of patients suffering from fluid overload who have failed diuretics. Its Aquadex FlexFlow system includes a console, disposable blood set, and catheter. The company sells its products to hospitals and clinics through its direct salesforce in the United States; and through independent specialty distributors primarily in Austria, Brazil, Czech Republic, Germany, Greece, Hong Kong, India, Israel, Italy, Romania, Singapore, Slovakia, Spain, Switzerland, Thailand, the United Arab Emirates, and the United Kingdom. The company was formerly known as CHF Solutions, Inc. and changed its name to Nuwellis, Inc. in April 2021. Nuwellis, Inc. was founded in 1999 and is headquartered in Eden Prairie, Minnesota.

How the Company Makes Money

Nuwellis makes money primarily through the sale of its flagship product, the Aquadex FlexFlow System, along with related supplies and accessories. The company targets healthcare providers, including hospitals and clinics, as its primary customers. Revenue is generated from the direct sales of the system, as well as recurring sales of disposable components required for each treatment session. Additionally, Nuwellis may engage in partnerships or collaborations with healthcare institutions to expand its market reach and enhance the adoption of its fluid management solutions. The company's earnings are influenced by factors such as the prevalence of fluid overload conditions, healthcare regulations, and the adoption rate of its technology in the medical community.

Nuwellis Financial Statement Overview

Summary

Nuwellis faces significant financial challenges marked by consistent losses and negative cash flows, despite stable revenue and a strong equity position. The company needs to focus on improving operational efficiency and profitability to ensure long-term sustainability. The medical equipment and supplies industry is competitive, and achieving positive cash flow is critical for future growth and stability.

Income Statement

Nuwellis demonstrates modest revenue growth with a 2.8% increase from 2022 to 2023 and a slight decline of 1.4% in 2024. However, the company is grappling with negative profitability as evidenced by significant negative EBIT and net income margins. Despite a decent gross profit margin of approximately 64.9% for 2024, ongoing losses due to high operational costs are concerning.

Balance Sheet

The company's balance sheet shows a healthy equity position with an equity ratio of 66.2% in 2024, indicating a strong buffer against liabilities. However, the debt-to-equity ratio stands at 0.08, showcasing manageable leverage but returns on equity remain negative due to sustained net losses. The stability is commendable, yet profitability remains a critical issue.

Cash Flow

Cash flow analysis reflects a challenging situation with negative free cash flow, although there is a marked improvement in operating cash flow from 2023 to 2024. The company's reliance on financing activities for liquidity is evident. Free cash flow growth remains negative, indicating ongoing cash burn issues which could impact future operations if not addressed.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.74M	8.86M	8.54M	7.92M	7.44M
	Gross Profit
5.68M	4.98M	4.75M	4.49M	4.06M
	EBIT
-10.99M	-17.63M	-17.17M	-19.53M	-17.03M
	EBITDA
-5.24M	-16.36M	-4.90M	-19.06M	-16.65M
	Net Income Common Stockholders
-10.62M	-20.21M	-14.53M	-19.58M	-15.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.09M	3.80M	18.31M	24.20M	14.44M
	Total Assets
9.86M	9.77M	24.67M	30.42M	20.01M
	Total Debt
545.00K	760.00K	984.00K	1.18M	339.00K
	Net Debt
-4.55M	-3.04M	-16.75M	-23.03M	-14.10M
	Total Liabilities
3.33M	6.56M	12.32M	4.47M	3.69M
	Stockholders Equity
6.53M	3.21M	12.36M	25.95M	16.32M
Cash Flow		Free Cash Flow
-9.65M	-18.18M	-15.27M	-18.10M	-16.87M
	Operating Cash Flow
-9.59M	-17.94M	-15.15M	-17.88M	-16.57M
	Investing Cash Flow
-60.00K	330.00K	14.73M	-219.00K	-267.00K
	Financing Cash Flow
10.96M	3.68M	9.42M	27.87M	30.02M

Nuwellis Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NUWE, the sentiment is Neutral. The current price of 1 is above the 20-day moving average (MA) of 0.91, below the 50-day MA of 1.09, and below the 200-day MA of 1.54, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 61.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NUWE.

Nuwellis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.32B	3.41	-40.36%	2.89%	17.93%	2.52%
NUWE	49 Neutral	$4.37M	―	-229.24%	―	-1.40%	91.79%
AMIX	46 Neutral	$5.12M	―	-662.74%	―	―	-10.29%
SINT	42 Neutral	$6.49M	―	-174.07%	―	9.90%	94.56%
VTAK	39 Underperform	$2.69M	―	-101.02%	―	-4.98%	95.05%
RSLS	37 Underperform	$4.12M	―	-222.46%	―	-7.74%	93.25%
VERO	36 Underperform	$3.53M	―	-496.27%	―	-15.09%	-2.50%

Nuwellis Corporate Events

Nuwellis Highlights Strategic Shift to Critical Care

On April 3, 2025, Nuwellis, Inc. announced an updated corporate presentation highlighting strategic shifts towards critical care and pediatrics, which now constitute 80% of their sales. The company is capitalizing on increased reimbursement rates for outpatient care, making their Aquadex therapy more financially viable for hospitals. This shift is expected to reduce long-term healthcare costs, improve patient outcomes, and strengthen Nuwellis’s market position by enhancing the integration of cardiology and nephrology in fluid management.

Nuwellis Appoints John Erb as Interim CEO

On February 24, 2025, Nuwellis, Inc. announced the retirement of Nestor Jaramillo, Jr. as President and CEO, effective February 18, 2025. John Erb, the current Chairman of the Board, has been appointed as the Interim President and CEO. Mr. Jaramillo’s departure was amicable, and he will receive certain benefits as per the Separation Agreement. The company plans to engage an executive search firm to find a permanent CEO. Mr. Erb, who has a long history with the company and extensive experience in the medical device industry, will lead Nuwellis during this transitional period.