Nevro Corp (NVRO) AI Stock Analysis

• Market Cap: $224.09M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -3.92%
• EPS Growth: -18.67%
• Country: US
• Employees: 1,099
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Devices
• EPS (TTM): -3.05
• Shares Outstanding: 31,007,000
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 0.03
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -7.60
• 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: $5.85
• Price Target Upside: 0.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 63 Neutral
• Price Target: ―

Nevro Corp's overall stock score reflects significant financial challenges, including declining revenues and high leverage, offset by some positive momentum in stock price and a promising merger agreement with Globus Medical. The lack of profitability and absence of dividends weigh on the valuation, but the merger could lead to improved operational performance and financial stability in the future.

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.

Financial 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.

Synergies

GMED sees potential revenue synergies by leveraging its position with spine and neurosurgeons to grow the spinal cord stimulation business.

Negative Factors

Competition

Nevro Corp had a large downward revision to guidance due to increased competition and physicians choosing companies with a broader spectrum of products.

Market Challenges

There are ongoing challenges in the spinal cord stimulation market, including increased competitive dynamics and market softness.

Revenue Headwinds

Revenue headwinds expected to persist into 2025 with NVRO citing competition/new product trialing as well as changes to commercial team and optimization of sales territories.

Nevro Corp Business Overview & Revenue Model

Company Description

Nevro 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 Money

Nevro 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.

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.

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.

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
EBITDA	-126.23M	-78.31M	21.02M	-102.40M	-52.20M
Net Income	-113.44M	-92.21M	3.00M	-131.36M	-83.06M
Balance Sheet
Total Assets	553.84M	635.71M	602.41M	574.54M	789.43M
Cash, Cash Equivalents and Short-Term Investments	292.53M	322.72M	374.38M	362.03M	587.97M
Total Debt	251.16M	221.83M	197.16M	166.71M	327.24M
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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYK	81 Outperform	$148.84B	52.56	14.26%	0.86%	10.76%	-15.22%
ABT	80 Outperform	$229.69B	17.13	30.66%	1.79%	5.00%	139.98%
MDT	77 Outperform	$115.21B	24.88	9.49%	3.16%	3.62%	31.18%
ZBH	73 Outperform	$18.56B	20.78	7.31%	1.02%	3.30%	-2.39%
BSX	72 Outperform	$152.68B	75.62	9.65%	―	19.35%	14.31%
NVRO	63 Neutral	$224.09M	―	-43.28%	―	-3.92%	-18.67%
Sector *	52 Neutral	$7.52B	0.21	-63.76%	2.30%	16.15%	0.89%

Nevro Corp Corporate Events

Nevro Corp Completes Merger and Delists from NYSE

On April 3, 2025, Nevro Corp, a company involved in the medical technology sector, completed a merger with Globus, resulting in Nevro becoming a wholly owned subsidiary of Globus. In conjunction with this merger, Nevro terminated its $200 million credit agreement, repaid approximately $227.1 million, and requested the delisting of its shares from the NYSE. Additionally, Nevro’s board of directors resigned, and new directors from Merger Sub were appointed, while Nevro’s incorporation documents were amended.

Nevro Corp Announces Merger Agreement with Globus Medical

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.