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Nexgel, Inc. (NXGL)
:NXGL
US Market

NexGel Inc (NXGL) AI Stock Analysis

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NexGel Inc

(NASDAQ:NXGL)

Rating:45Neutral
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 (NXGL) vs. SPDR S&P 500 ETF (SPY)

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 Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: -17.75%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant revenue growth, improved gross margins, and strong performance in contract manufacturing and consumer products. While there are challenges such as the delay in AbbVie's product launch and potential tariff impacts, the highlights significantly outweigh the lowlights.
Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Revenue for Q1 2025 was $2.81 million, marking a 121% increase year-over-year compared to $1.27 million in Q1 2024.
Contract Manufacturing and Consumer Products Surge
Contract manufacturing revenue increased 58% year-over-year, and consumer branded products surged by 189% year-over-year, driven by brands like Silly George.
Improved Gross Margins and Profitability
Gross margins normalized to 42.4% in Q1 2025, up from 12.6% in Q1 2024, with gross profit increasing from $0.16 million to $1.19 million over the same period.
Strategic Partnerships and New Products
NEXGEL's partnerships with companies like Cintas, Owens & Minor, and STADA are progressing well, and multiple new product launches are planned, including products under Medagel, Kenkoderm, and Silly George brands.
Strong Performance in Consumer Products
The consumer product line, including Silly George, is expected to continue growing with new product launches and strategic market positioning.
Negative Updates
Delays in AbbVie Product Launch
The launch of AbbVie's RESONIC machine has been delayed again due to manufacturing issues unrelated to NEXGEL, impacting expected revenue.
Potential Tariff Impact
There are concerns over tariffs on Silly George products imported from China, which could affect costs and margins if tariffs increase significantly.
Company Guidance
During NEXGEL's first quarter 2025 financial results call, the company reported a revenue of $2.81 million, marking a 121% increase year-over-year from the same quarter in 2024. The revenue growth was driven by a 58% increase in contract manufacturing and a 189% rise in consumer branded products, despite Q1 being a seasonally weak quarter. Gross margins normalized to 42.4%, up from 37% in Q4 2024. The company's EBITDA and adjusted EBITDA losses narrowed to $0.54 million and $0.47 million, respectively, compared to the previous year's losses of $0.84 million and $0.73 million. NEXGEL highlighted its strategic partnerships and new product launches, expecting to maintain its guidance of $13 million in revenue and achieving cash flow positivity in 2025.

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
30
Negative
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
45
Neutral
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
40
Negative
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
8.69M4.09M2.05M1.55M674.00K
Gross Profit
2.75M619.00K256.00K9.00K-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 SheetCash, Cash Equivalents and Short-Term Investments
1.81M2.70M6.61M13.35M32.00K
Total Assets
10.98M9.96M10.36M16.98M2.26M
Total Debt
2.83M2.80M2.08M4.26M1.28M
Net Debt
1.02M98.00K982.00K-9.09M1.25M
Total Liabilities
4.90M4.79M2.72M4.90M2.19M
Stockholders Equity
5.75M4.70M7.64M12.09M71.00K
Cash FlowFree 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
-775.00K4.46M-5.59M-269.00K-312.00K
Financing Cash Flow
3.75M379.00K-3.66M16.34M1.88M

NexGel Inc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.27
Price Trends
50DMA
2.58
Negative
100DMA
2.90
Negative
200DMA
3.04
Negative
Market Momentum
MACD
-0.12
Negative
RSI
43.53
Neutral
STOCH
42.18
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 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 (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$34.66M43.979.17%10.34%
53
Neutral
$5.25B3.24-45.38%2.81%16.79%-0.06%
48
Neutral
$18.62M-138.80%-14.41%-549.88%
RVRVP
46
Neutral
$19.73M-25.89%-16.05%-195.28%
45
Neutral
$23.24M-62.82%115.94%17.42%
45
Neutral
$56.86M-354.27%-14.55%34.87%
38
Underperform
$21.79M-239.87%61.97%-6.89%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NXGL
NexGel Inc
2.29
0.14
6.51%
HBIO
Harvard Bioscience
0.41
-2.57
-86.24%
RVP
Retractable Technologies
0.67
-0.46
-40.71%
NEPH
Nephros
3.32
1.15
53.00%
AKYA
Akoya Biosciences
1.16
-0.93
-44.50%
FEMY
Femasys
0.80
-0.25
-23.81%

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.