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NexGel Inc (NXGL)
NASDAQ:NXGL
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NexGel Inc
(NASDAQ:NXGL)
42Neutral
Positive Factors
Partnerships
A partnership with Cintas Corporation is expected to accelerate sales through Cintas' expansive distribution network.
Product Launches
2025 revenue is expected to be driven by multiple initiatives, notably sales from AbbVie’s RESONIC Device launch which will utilize NexGel’s hydrogel pads.
Revenue Growth
NexGel reported 4Q24 results with revenue of $3.0M, up 181% year-over-year, in line with preliminary revenue guidance.
Negative 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.
Market Cap
NexGel's market cap is only approximately $14 million, but it has secured agreements with large companies like AbbVie, Haleon, and STADA, showcasing its leadership in hydrogel patch technology.
NexGel Inc (NXGL) vs. S&P 500 (SPY)
Market Cap
$26.31M
Dividend YieldN/A
Average Volume (3M)58.22K
Price to Earnings (P/E)―
Beta (1Y)1.44
Revenue Growth112.40%
EPS Growth8.78%
CountryUS
Employees19
SectorHealthcare
Sector Strength76
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.51
Shares Outstanding7,654,037
10 Day Avg. Volume56,194
30 Day Avg. Volume58,215
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.73
Price to Cash Flow (P/CF)-3.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside133.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
NexGel Inc Business Overview & Revenue Model
Company DescriptionNEXGEL, 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 MoneyNexGel 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, indicating potential in core operations. However, ongoing net losses and negative cash flows present challenges in achieving profitability. The balance sheet is stable with a reasonable equity position, but profitability issues remain a key risk impacting overall 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.30
Negative
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.45
Neutral
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.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.73M | 8.69M | 4.09M | 2.05M | 1.55M | 674.00K |
| Gross Profit | |||||
| 1.98M | 2.75M | 619.00K | 256.00K | 9.00K | -291.00K |
| EBIT | |||||
| -3.93M | -3.55M | -3.48M | -3.35M | -2.57M | -2.26M |
| EBITDA | |||||
| -3.25M | -3.55M | -2.73M | -3.11M | -2.20M | -2.20M |
| Net Income Common Stockholders | |||||
| -3.53M | -3.28M | -3.16M | -6.14M | -6.31M | -2.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 0.00 | 1.81M | 2.70M | 6.61M | 13.35M | 32.00K |
| Total Assets | |||||
| 894.00K | 10.98M | 9.96M | 10.36M | 16.98M | 2.26M |
| Total Debt | |||||
| 0.00 | 2.73M | 2.80M | 2.08M | 4.26M | 1.28M |
| Net Debt | |||||
| 0.00 | 922.00K | 98.00K | 982.00K | -9.09M | 1.25M |
| Total Liabilities | |||||
| 269.00K | 4.90M | 4.79M | 2.72M | 4.90M | 2.19M |
| Stockholders Equity | |||||
| 625.00K | 5.75M | 4.70M | 7.64M | 12.09M | 71.00K |
| Cash Flow | Free Cash Flow | ||||
| -4.05M | -3.87M | -3.93M | -3.09M | -3.02M | -2.11M |
| Operating Cash Flow | |||||
| -3.60M | -3.87M | -3.24M | -2.99M | -2.75M | -1.80M |
| Investing Cash Flow | |||||
| -985.00K | -775.00K | 4.46M | -5.59M | -269.00K | -312.00K |
| Financing Cash Flow | |||||
| 2.37M | 3.75M | 379.00K | -3.66M | 16.34M | 1.88M |
NexGel Inc Technical Analysis
Negative
2.57
Price Trends
3.12
Negative
3.43
Negative
3.03
Negative
Market Momentum
-0.05
Negative
50.33
Neutral
53.13
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 2.57 is below the 20-day moving average (MA) of 2.86, below the 50-day MA of 3.12, and below the 200-day MA of 3.03, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 53.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NXGL.
NexGel Inc Risk Analysis
NexGel Inc disclosed 30 risk factors in its most recent earnings report. NexGel Inc 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
NexGel Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.15B | 29.60 | 7.82% | 2.74% | 4.58% | 55.99% | |
48 Neutral | $6.36B | 1.09 | -49.92% | 2.63% | 17.17% | 0.95% | |
46 Neutral | $25.42M | ― | -10.72% | ― | -13.19% | -320.59% | |
42 Neutral | $26.31M | ― | -62.78% | ― | 112.40% | 8.78% | |
40 Underperform | $186.51M | ― | -154.01% | ― | 187.79% | 32.40% | |
39 Underperform | $237.30M | ― | -16.20% | ― | 498.72% | 49.92% | |
37 Underperform | $2.90M | ― | -284.28% | ― | ― | 83.04% |
* Healthcare Sector Average
Performance Comparison
NXGL
NexGel Inc
2.57
0.35
15.77%
HSON
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10.02
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SNN
Smith & Nephew Snats
26.31
2.56
10.78%
XOMA
Xoma
19.44
-5.80
-22.98%
OCGN
Ocugen
0.66
-1.22
-64.89%
APVO
Aptevo Therapeutics
1.49
-136.15
-98.92%
NexGel Inc Earnings Call Summary
Earnings Call Date: Mar 24, 2025 | % Change Since: -16.83% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant revenue growth and successful expansion in contract manufacturing and consumer products. However, challenges such as decreased gross margins, inventory write-offs, and continued losses indicate areas needing improvement. The overall sentiment reflects a company making positive strides but facing ongoing financial challenges.Highlights
Record Revenue Growth
NEXGEL achieved record revenue growth, with a 181% increase in Q4 2024 revenue to $3.04 million compared to $1.08 million in Q4 2023, and a 112% increase in full-year 2024 revenue totaling $8.69 million compared to $4.09 million in 2023.
Successful Contract Manufacturing
Contract manufacturing significantly contributed to growth, driven by increased demand from existing customers and onboarding new global corporations such as Cintas and Owens & Minor.
Expansion of Consumer Products
The consumer products portfolio, including brands like Medagel, Kenkoderm, and Silly George, saw strong growth, with Silly George's revenue growing from $2 million to over $5 million.
Positive Partnership Developments
NEXGEL's partnership with STADA is progressing well, with product Histasolv exceeding projections and a contract amendment signed to expand the relationship.
Innovation and New Product Launches
NEXGEL launched a study on hydrogel efficacy for laser hair removal, with potential regulatory compliance and safety benefits. New product launches are planned for 2025, including expanded lines for Medagel and Kenkoderm.
Lowlights
Decreased Gross Margins
Gross margins for Q4 2024 were 37%, a decrease from 43.6% in Q3, primarily due to a reclassification of Amazon sales commissions from selling costs to COGS.
Inventory Write-Offs
The company faced two inventory write-offs totaling $243,000 due to high minimum order quantity purchases in 2022, impacting net loss and EBITDA figures.
Continued Losses
NEXGEL reported a net loss of $0.85 million for Q4 2024 and a total net loss of $3.28 million for the year, indicating ongoing financial challenges despite revenue growth.
Company Guidance
During the earnings call for NEXGEL's fourth quarter and full year 2024, the company provided extensive guidance and metrics that highlight its financial performance and future expectations. The company reported a 181% increase in fourth-quarter revenue to $3.04 million compared to the same period in 2023, while full-year revenue grew by 112% to $8.69 million. Gross profit for the fourth quarter rose to $1.13 million, yielding a gross margin of 37.2%, although slightly down from the third quarter due to a reclassification of Amazon sales commissions. Despite a net loss of $0.85 million in the fourth quarter, the company noted that this figure included one-time inventory write-offs totaling $243,000. NEXGEL anticipates reaching positive EBITDA in 2025, with Q1 revenue expected to be at least $2.75 million and full-year revenue projected at a minimum of $13 million. The call also highlighted successful partnerships, such as a significant supply agreement with Cintas, which began contributing to revenues in Q4 2024, and the ongoing progress with STADA and Innovative Optics. The company is also focused on expanding its consumer product lines, with new offerings expected in their Medagel, Kenkoderm, and Silly George brands in 2025.NexGel Inc Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
NexGel Inc Announces New CFO Amid Strategic Growth
Positive
Jan 6, 2025
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.
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.