Nuwellis (NUWE) AI Stock Analysis

• Market Cap: $1.33M
• Dividend Yield: N/A
• Average Volume (3M): 18.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: -1.21%
• EPS Growth: 93.72%
• Country: US
• Employees: 38
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Devices
• EPS (TTM): -0.69
• Shares Outstanding: 4,780,723
• 10 Day Avg. Volume: 55,945,668
• 30 Day Avg. Volume: 18,677,996
• PEG Ratio: <0.01
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.12
• Enterprise Value/Market Cap: -11.16
• Enterprise Value/Revenue: -0.42
• Enterprise Value/Gross Profit: -2.68
• Enterprise Value/Ebitda: 0.38
• 1Y Price Target: $11.00
• Price Target Upside: 3828.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: $0.50 ▲(78.57%Upside)

Nuwellis' overall stock score reflects significant financial challenges, including ongoing losses and negative cash flow, as the most critical factors. Technical indicators suggest bearish momentum, and valuation remains unattractive due to a negative P/E ratio. However, cautious optimism from the earnings call and recent strategic agreements provide some positive outlook.

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 generates revenue primarily through the sale and leasing of its Aquadex FlexFlow System and related consumables. The system is marketed to hospitals, clinics, and healthcare providers, who purchase or lease the equipment to treat patients with fluid overload conditions. Additionally, Nuwellis earns income from the sale of disposable items required for the operation of the Aquadex system, such as catheters and filters. The company may also engage in strategic partnerships with healthcare organizations to expand the reach and adoption of its products, contributing to its revenue streams.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.79M	8.74M	8.86M	8.54M	7.92M	7.44M
	Gross Profit
5.55M	5.68M	4.98M	4.75M	4.49M	4.06M
	EBIT
-9.30M	-10.99M	-17.63M	-17.17M	-19.53M	-17.03M
	EBITDA
-8.02M	-5.24M	-16.36M	-4.90M	-19.06M	-16.65M
	Net Income Common Stockholders
-9.85M	-10.62M	-20.21M	-14.53M	-19.58M	-15.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.56M	5.09M	3.80M	18.31M	24.20M	14.44M
	Total Assets
7.01M	9.86M	9.77M	24.67M	30.42M	20.01M
	Total Debt
492.00K	545.00K	760.00K	984.00K	1.18M	339.00K
	Net Debt
-2.06M	-4.55M	-3.04M	-16.75M	-7.57M	-14.10M
	Total Liabilities
3.42M	3.33M	6.56M	12.32M	4.47M	3.69M
	Stockholders Equity
3.58M	6.53M	3.21M	12.36M	25.95M	16.32M
Cash Flow		Free Cash Flow
-9.30M	-9.65M	-18.18M	-15.27M	-18.06M	-16.87M
	Operating Cash Flow
-9.27M	-9.59M	-17.94M	-15.15M	-17.84M	-16.57M
	Investing Cash Flow
-31.00K	-60.00K	330.00K	14.73M	-15.72M	-267.00K
	Financing Cash Flow
10.46M	10.96M	3.68M	9.42M	27.87M	30.02M

Nuwellis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NUWE, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.84, and below the 200-day MA of 1.20, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 24.06 is Positive, neither overbought nor oversold. The STOCH value of 15.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NUWE.

Nuwellis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.37B	3.26	-45.10%	3.30%	16.81%	0.02%
VTAK	49 Neutral	$4.60M	―	-136.26%	―	9.57%	10.03%
NUWE	45 Neutral	$1.33M	―	-440.77%	―	-1.21%	93.72%
VERO	43 Neutral	$4.67M	―	-496.27%	―	-16.79%	-3.69%
SINT	42 Neutral	$8.20M	―	-155.20%	―	9.90%	94.56%
AMIX	40 Underperform	$3.61M	―	-145.09%	―	―	-10.29%
RSLS	37 Underperform	$6.01M	―	-120.16%	―	-7.74%	93.25%

Nuwellis Corporate Events

Nuwellis Completes Securities Exchange Agreement with CEO

On June 6, 2025, Nuwellis, Inc. filed a Certificate of Designation for Series F-1 Convertible Preferred Stock with the Delaware Secretary of State, authorizing the issuance of 100 shares. This new stock series is similar to the existing Series F Convertible Preferred Stock but includes a conversion limitation to prevent holders from exceeding 19.99% ownership of outstanding common stock. On June 9, 2025, Nuwellis entered into a Securities Exchange Agreement with CEO John L. Erb, exchanging 100 shares of the new Series F-1 Stock for the same number of existing Series F Stock, resulting in Mr. Erb owning 100% of the Series F-1 Stock.

The most recent analyst rating on (NUWE) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Nuwellis stock, see the NUWE Stock Forecast page.

Nuwellis Approves Reverse Stock Split at Meeting

On May 20, 2025, Nuwellis held its annual stockholders meeting where key decisions were made. Two Class III directors were elected to the board for three-year terms, and a reverse stock split was approved to help maintain compliance with Nasdaq listing requirements. Additionally, Baker Tilly US, LLP was ratified as the independent public accounting firm for 2025, and provisions were made for potential adjournments to gather more proxy votes if needed.

The most recent analyst rating on (NUWE) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Nuwellis stock, see the NUWE Stock Forecast page.

Nuwellis Enters Agreement with Kluge Design for Aquadex

On May 9, 2025, Nuwellis, Inc. entered into a Supply & Quality Agreement with Kluge Design, LLC to manufacture and service the Aquadex product line. This agreement, which includes an upfront payment and volume-based payments, involves transferring certain employees to Kluge Design and has an initial term of three years, with automatic renewals. The agreement’s impact includes securing manufacturing capabilities for Nuwellis and ensuring the continuity of their product line, potentially strengthening their position in the medical device industry.

The most recent analyst rating on (NUWE) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Nuwellis stock, see the NUWE Stock Forecast page.

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.