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Nevro Corp (NVRO)
NYSE:NVRO
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Nevro Corp
(NYSE:NVRO)
61Neutral
Positive Factors
Acquisition
Nevro Corp announced an agreement to be acquired by GMED for $5.85/share, which represents a 17% premium to its undisturbed closing price.
Revenue Performance
Q4 preliminary results ahead of consensus: NVRO announced that it expects Q4/24 revenue in the range of $105M-$106M, ahead of our $98.6M estimate and the Street’s $100.2M.
Negative Factors
Market Challenges
There are ongoing challenges in the spinal cord stimulation market, including increased competitive dynamics and market softness.
Nevro Corp (NVRO) vs. S&P 500 (SPY)
Market Cap
$218.94M
Dividend YieldN/A
Average Volume (3M)1.47M
Price to Earnings (P/E)―
Beta (1Y)1.96
Revenue Growth-3.92%
EPS Growth-18.67%
CountryUS
Employees1,215
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-3.05
Shares Outstanding38,372,025
10 Day Avg. Volume1,033,755
30 Day Avg. Volume1,470,696
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.54
Price to Cash Flow (P/CF)2.90
P/FCF Ratio2.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.87Price Target Upside1.56% Upside
Rating ConsensusHold
Number of Analyst Covering10
Nevro Corp Business Overview & Revenue Model
Company DescriptionNevro Corp (NVRO) is a global medical device company that specializes in developing and commercializing innovative solutions for the treatment of chronic pain. The company's flagship product is the Senza spinal cord stimulation (SCS) system, which is designed to deliver high-frequency stimulation to the spinal cord to alleviate pain. Nevro operates primarily within the healthcare and medical device sectors, focusing on improving patient outcomes through advanced technology.
How the Company Makes MoneyNevro Corp makes money primarily through the sale of its Senza spinal cord stimulation systems. The company's revenue model is based on the direct sales of these medical devices to healthcare providers, hospitals, and clinics. A significant portion of its earnings comes from the implantation of these devices in patients suffering from chronic pain, which often requires ongoing medical support and follow-up. Nevro also generates revenue from service agreements and support contracts associated with the maintenance and operation of its devices. The company's earnings are influenced by its ability to maintain strong relationships with healthcare providers and expand its market presence through strategic partnerships and collaborations with medical professionals and institutions.
Nevro Corp Financial Statement Overview
Summary
Nevro Corp faces significant financial challenges, marked by declining revenues, negative profit margins, and a high debt-to-equity ratio. While the company shows some resilience in gross margins and a slight improvement in free cash flow, the overall financial health is concerning due to persistent operational inefficiencies and high leverage.Income Statement
Nevro Corp's income statement reveals a challenging environment with declining revenue growth, evidenced by a revenue decrease from $425.2M in 2023 to $408.5M in 2024, translating to a -3.91% revenue growth rate. The company also faces negative EBIT and EBITDA margins, highlighting operational inefficiencies. However, relatively stable gross profit margins show some resilience in core operations.65
Positive
Balance Sheet
The balance sheet analysis indicates a solid equity ratio of 41.7% as of 2024, showcasing some financial stability. However, the debt-to-equity ratio increased to 1.09, suggesting rising leverage risks. The negative return on equity of -49.1% indicates profitability challenges, where the company is not generating sufficient returns on shareholder investment.60
Neutral
Cash Flow
Cash flow analysis indicates financial pressure with a negative free cash flow and operating cash flow. The operating cash flow to net income ratio is negative, reflecting cash flow difficulties. However, there is an improvement in free cash flow from -$67.4M in 2023 to -$29.2M in 2024, a significant positive shift despite the remaining negative balance.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 408.52M | 425.17M | 406.37M | 386.90M | 362.05M | Gross Profit |
| 269.53M | 290.06M | 276.37M | 266.04M | 249.90M | EBIT |
| -126.23M | -99.31M | -98.84M | -90.93M | -62.85M | EBITDA |
| -126.23M | -78.31M | 21.02M | -102.40M | -52.20M | Net Income Common Stockholders |
| -113.44M | -92.21M | 3.00M | -131.36M | -83.06M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 292.53M | 322.72M | 374.38M | 362.03M | 587.97M | Total Assets |
| 553.84M | 635.71M | 602.41M | 574.54M | 789.43M | Total Debt |
| 251.16M | 221.83M | 197.16M | 166.71M | 327.24M | Net Debt |
| 156.62M | 117.61M | 76.79M | 132.00M | 282.64M | Total Liabilities |
| 322.83M | 342.57M | 278.53M | 270.93M | 400.97M | Stockholders Equity |
| 231.01M | 293.14M | 323.88M | 303.62M | 388.46M |
| Cash Flow | Free Cash Flow | |||
| -29.23M | -67.42M | 17.13M | -54.22M | -4.83M | Operating Cash Flow |
| -19.44M | -58.83M | 24.68M | -41.88M | 1.19M | Investing Cash Flow |
| 14.63M | -7.20M | 64.29M | 201.72M | -369.87M | Financing Cash Flow |
| -4.21M | 49.53M | -2.46M | -169.38M | 346.90M |
Nevro Corp Technical Analysis
Positive
5.78
Price Trends
5.00
Positive
4.81
Positive
6.07
Negative
Market Momentum
0.18
Positive
69.53
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVRO, the sentiment is Positive. The current price of 5.78 is above the 20-day moving average (MA) of 5.74, above the 50-day MA of 5.00, and below the 200-day MA of 6.07, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 69.53 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NVRO.
Nevro Corp Risk Analysis
Nevro Corp disclosed 63 risk factors in its most recent earnings report. Nevro Corp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nevro Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $139.39B | 47.68 | 15.26% | 0.88% | 10.23% | -5.74% | |
79 Outperform | $238.23B | 17.96 | 30.95% | 1.63% | 4.59% | 134.50% | |
78 Outperform | $140.97B | 76.57 | 9.03% | ― | 17.60% | 16.84% | |
77 Outperform | $119.64B | 28.51 | 8.42% | 2.97% | 2.72% | 4.48% | |
72 Outperform | $21.37B | 24.96 | 7.24% | 0.87% | 3.84% | -9.29% | |
61 Neutral | $218.94M | ― | -43.28% | ― | -3.92% | -18.67% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
NVRO
Nevro Corp
5.78
-8.56
-59.69%
ABT
Abbott Labs
132.66
14.90
12.65%
BSX
Boston Scientific
95.52
29.48
44.64%
MDT
Medtronic
93.28
11.01
13.38%
SYK
Stryker
365.29
11.66
3.30%
ZBH
Zimmer Biomet Holdings
107.34
-18.17
-14.48%
Nevro Corp Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: 0.87% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in cost management, cash position improvement, and new product launches like HFX AdaptivAI, which show promise for future growth. However, the company faced challenges with declining revenue and trial procedures, competitive pressures, and international market issues. While the company is optimistic about its strategic initiatives and new technology, market challenges remain a concern.Highlights
Cost Management and Restructuring Benefits
Net loss from operations decreased to $13.9 million from $25.6 million, and adjusted EBITDA improved to negative $1.8 million from a loss of $5.8 million due to restructuring and focus on expense management.
Cash Position Improvement
Cash, cash equivalents, and short-term investments increased by $3.3 million to $277 million, reflecting benefits from restructuring and strong working capital management.
HFX AdaptivAI Launch
FDA approval and limited market release of HFX AdaptivAI, which reduces charging requirements and improves clinical outcomes, leading to a 41% faster pain relief for patients.
Regulatory Approval in EU
Regulatory approval for HFX iQ in CE Mark countries, with a limited market release expected in select regions of the EU in late 2024 and full market release in Q1 2025.
SI Joint Fusion Product Advancements
Progress in SI joint fusion business with Nevro1 providing better opportunities for robust SI joint arthrodesis and positive feedback from physicians.
Lowlights
Decline in Revenue and Trials
Worldwide revenue decreased by 6.7%, and U.S. SCS trial procedures declined by approximately 15.2%, with competitive pressures and reduced DTC marketing as contributing factors.
International Revenue Decline
International revenue decreased by 7.7% due to negative media reports in Australia and healthcare reform in Germany impacting procedures.
Market Challenges and Competitive Pressure
Ongoing softness in the core U.S. SCS market and competitive pressures negatively impacted trial procedures and revenue.
Company Guidance
During Nevro Corp.'s third quarter 2024 earnings call, the company provided guidance indicating a maintained full-year revenue forecast of $400 million to $405 million, reflecting a decrease of approximately 5% to 6% from 2023. The guidance considers ongoing market challenges and impacts from decreased direct-to-consumer (DTC) marketing spend. The company reported a worldwide revenue decrease of 6.7% compared to the third quarter of 2023, with U.S. revenue down by 6.5% and U.S. spinal cord stimulation (SCS) trial procedures declining by about 15.2%. Nevro also highlighted adjusted EBITDA guidance improvement to a range of negative $18 million to negative $16 million, an upgrade from the previous negative $20 million to negative $18 million. The company expects its cash position to further increase in the fourth quarter, leveraging cost savings from restructuring efforts.Nevro Corp Corporate Events
M&A Transactions
Nevro Corp Announces Merger Agreement with Globus Medical
Positive
Feb 6, 2025
Nevro Corp. has entered into a merger agreement with Globus Medical, which will acquire all shares of Nevro for $5.85 per share in an all-cash transaction valued at approximately $250 million. The merger, announced on February 6, 2025, is expected to close in the second quarter of 2025, aiming to expand Globus Medical’s market presence and improve Nevro’s financial performance through operational efficiencies. The transaction has been approved by the boards of both companies and offers a premium to Nevro’s recent stock prices. It will require regulatory and shareholder approvals, and comes with customary conditions and termination rights, including potential termination fees.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.