NexGel Inc (NXGL) AI Stock Analysis

• Market Cap: $23.24M
• Dividend Yield: N/A
• Average Volume (3M): 36.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: 115.94%
• EPS Growth: 17.42%
• Country: US
• Employees: 19
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.09
• Shares Outstanding: 7,654,537
• 10 Day Avg. Volume: 32,323
• 30 Day Avg. Volume: 36,702
• PEG Ratio: -0.56
• Price to Book (P/B): 3.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.60
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 7.67
• Enterprise Value/Ebitda: -1.69
• 1Y Price Target: $6.00
• Price Target Upside: 164.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: $2.50 ▲(10.13%Upside)

NexGel Inc's overall score reflects strong revenue growth and positive earnings call sentiment. However, persistent financial performance challenges, including ongoing net losses and negative cash flows, weigh heavily on the score. The stock's bearish technical indicators and valuation concerns further impact its attractiveness. Despite positive strategic developments, the company needs to demonstrate consistent profitability improvements to enhance its stock score.

Positive Factors

Cash Position

NexGel ended the period with $1.81M in cash and no debt, which should fund the company until positive cash flow is achieved.

Profitability

NexGel is on track to achieve positive adjusted EBITDA and cash flow by the third quarter of 2025, which is viewed as a significant milestone.

Revenue Growth

NexGel reported a significant revenue increase of 122% year-over-year, aligning with guidance and surpassing estimates.

Negative Factors

Operating Expenses

Operating expenses were higher than expected due to auditing and temporary accounting department expenses.

Operational Costs

Higher than expected operating expenses due to temporary accounting and auditing costs may affect financial performance.

NexGel Inc Business Overview & Revenue Model

Company Description

NEXGEL, Inc. manufactures high water content, electron beam cross-linked, and aqueous polymer hydrogels and gels. Its products are used for wound care, medical diagnostics, transdermal drug delivery, and cosmetics. The company was formerly known as AquaMed Technologies, Inc. and changed its name to NEXGEL, Inc. in November 2019. NEXGEL, Inc. was founded in 1997 and is based in Langhorne, Pennsylvania.

How the Company Makes Money

NexGel Inc generates revenue through the sale of its proprietary hydrogel products and formulations. The company's primary revenue streams include direct sales to healthcare providers and manufacturers who incorporate NexGel's hydrogels into their products. Additionally, NexGel may engage in partnerships and collaborations with other companies to co-develop or license its technology, further broadening its market reach and revenue potential. Key factors contributing to its earnings include the growing demand for advanced wound care and transdermal drug delivery solutions, as well as its ability to innovate and adapt its hydrogel technologies to meet diverse market needs.

NexGel Inc Financial Statement Overview

Summary

NexGel Inc shows strong revenue growth, reflecting potential in its core business operations. However, persistent net losses and negative cash flows indicate challenges in achieving profitability and financial stability. The balance sheet remains stable with a reasonable equity position, but the company must address profitability issues to improve its financial health.

Income Statement

NexGel Inc has experienced significant revenue growth over the years, with a notable increase from 2023 to 2024. However, the company continues to report negative net income, leading to a negative net profit margin. The gross profit margin has improved, but operating losses remain a concern, reflected in negative EBIT and EBITDA margins. The improvement in revenue is overshadowed by persistent losses, impacting overall profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio with an increasing stockholders' equity base, indicating a stable equity position. However, the return on equity remains negative due to ongoing net losses, which is concerning. The equity ratio is healthy, suggesting that the company is not overly reliant on debt financing. Despite these positive aspects, the inability to generate net income affects overall stability.

Cash Flow

NexGel Inc's cash flow statements show negative operating and free cash flows, indicating operational challenges. Despite this, the company has managed to secure financing, which has supported cash flow needs. However, the inability to generate positive free cash flow to net income ratio highlights the ongoing struggles in achieving cash flow profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.69M	4.09M	2.05M	1.55M	674.00K
	Gross Profit
2.75M	619.00K	256.00K	9.00K	-291.00K
	EBIT
-3.55M	-3.48M	-3.35M	-2.57M	-2.26M
	EBITDA
-2.90M	-2.73M	-3.11M	-2.20M	-2.20M
	Net Income Common Stockholders
-3.28M	-3.16M	-6.14M	-6.31M	-2.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.81M	2.70M	6.61M	13.35M	32.00K
	Total Assets
10.98M	9.96M	10.36M	16.98M	2.26M
	Total Debt
2.83M	2.80M	2.08M	4.26M	1.28M
	Net Debt
1.02M	98.00K	982.00K	-9.09M	1.25M
	Total Liabilities
4.90M	4.79M	2.72M	4.90M	2.19M
	Stockholders Equity
5.75M	4.70M	7.64M	12.09M	71.00K
Cash Flow		Free Cash Flow
-4.31M	-3.93M	-3.09M	-3.02M	-2.11M
	Operating Cash Flow
-3.87M	-3.24M	-2.99M	-2.75M	-1.80M
	Investing Cash Flow
-775.00K	4.46M	-5.59M	-269.00K	-312.00K
	Financing Cash Flow
3.75M	379.00K	-3.66M	16.34M	1.88M

NexGel Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.27
• 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 NXGL, the sentiment is Negative. The current price of 2.27 is below the 20-day moving average (MA) of 2.37, below the 50-day MA of 2.58, and below the 200-day MA of 3.04, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 42.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NXGL.

NexGel Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEPH	67 Neutral	$34.66M	43.97	9.17%	―	10.34%	―
Sector *	53 Neutral	$5.25B	3.24	-45.38%	2.81%	16.79%	-0.06%
HBIO	48 Neutral	$18.62M	―	-138.80%	―	-14.41%	-549.88%
RVP	46 Neutral	$19.73M	―	-25.89%	―	-16.05%	-195.28%
NXGL	45 Neutral	$23.24M	―	-62.82%	―	115.94%	17.42%
AKYA	45 Neutral	$56.86M	―	-354.27%	―	-14.55%	34.87%
FEMY	38 Underperform	$21.79M	―	-239.87%	―	61.97%	-6.89%

NexGel Inc Corporate Events

NexGel Inc Announces New CFO Amid Strategic Growth

NEXGEL, Inc. has announced the appointment of Joseph F. McGuire as its new Chief Financial Officer, effective January 1, 2025. McGuire, who brings over 30 years of financial and public company experience, succeeds Adam E. Drapczuk III, who will continue to serve the company as a consultant. This leadership transition is expected to bolster NEXGEL’s financial operations and strategic growth as the company continues to expand in the healthcare sector.