Psychemedics (PMDI) AI Stock Analysis

• Market Cap: $13.65M
• Dividend Yield: N/A
• Average Volume (3M): 4.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: -11.16%
• EPS Growth: 24.30%
• Country: US
• Employees: 116
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical Diagnostics & Screening
• EPS (TTM): -0.32
• Shares Outstanding: 6,109,502
• 10 Day Avg. Volume: 6,948
• 30 Day Avg. Volume: 4,695
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: ―

Psychemedics' stock is under pressure primarily due to weak financial performance and negative investor sentiment post-earnings. The lack of profitability, deteriorating price trends, and absence of compelling valuation metrics contribute to a low overall score. Improvements in financial health and positive future guidance are essential for a better outlook.

Psychemedics Business Overview & Revenue Model

Company Description

Psychemedics Corporation (PMD) is a leader in the field of drug testing, specializing in hair analysis to detect the presence of drugs. The company operates primarily in the healthcare and safety sectors, providing services that cater to a wide range of industries including law enforcement, schools, and employers. Psychemedics is known for its patented hair testing technology, which offers a longer detection window for substance use compared to traditional urine or blood tests.

How the Company Makes Money

Psychemedics Corporation generates revenue primarily through the provision of drug testing services. The company charges its clients, which include corporations, government agencies, and educational institutions, for conducting hair analysis tests that detect drug use. These services are offered either on a one-time basis or through ongoing contracts, providing a steady stream of income. A significant portion of revenue is derived from partnerships with businesses that require regular drug testing for compliance and safety reasons. Additionally, Psychemedics invests in research and development to maintain its technological edge, which helps in retaining and expanding its client base. The company's revenue is also influenced by regulations and policies that mandate drug testing, thereby increasing the demand for its services.

Psychemedics Financial Statement Overview

Summary

Psychemedics is facing significant financial challenges with declining revenues and persistent losses, negatively impacting profitability and margins. Despite improvements in debt reduction and cash flow, the overall financial outlook remains concerning, necessitating a focus on operational efficiency and revenue growth.

Income Statement

The company has been experiencing declining revenues, with a significant decrease from 2019 to the TTM (Trailing-Twelve-Months) period. Gross profit margin has also decreased over this period. The net profit margin is negative, indicating losses, although the loss has decreased somewhat in the TTM compared to previous years. The EBIT and EBITDA margins are negative, reflecting ongoing operational challenges.

Balance Sheet

The debt-to-equity ratio has improved over the years, indicating a decrease in leverage. However, the equity ratio has declined, showing a reduction in equity relative to total assets. The return on equity is negative due to net losses, but the company has managed to reduce debt levels, which is a positive sign of financial management.

Cash Flow

The cash flow situation has improved in the TTM period, with positive operating and free cash flow compared to negative figures in previous years. However, the operating cash flow to net income ratio indicates challenges in translating earnings into cash flow, reflecting difficulties in operational efficiency.

Breakdown	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	―	―	―	―	―
Gross Profit	8.41M	9.29M	10.26M	4.89M	16.44M
EBITDA	-251.00K	2.23M	3.90M	-2.44M	6.03M
Net Income	-4.15M	-1.08M	-665.00K	-3.86M	1.54M
Balance Sheet
Total Assets	12.33M	18.73M	21.55M	24.00M	27.53M
Cash, Cash Equivalents and Short-Term Investments	―	―	―	―	―
Total Debt	2.30M	3.57M	5.13M	8.90M	5.97M
Total Liabilities	5.65M	7.96M	9.31M	11.49M	10.71M
Stockholders Equity	―	―	―	―	―
Cash Flow
Free Cash Flow	-1.64M	4.70M	232.00K	-4.93M	2.58M
Operating Cash Flow	-1.48M	4.89M	414.00K	-4.08M	4.31M
Investing Cash Flow	―	―	―	―	―
Financing Cash Flow	―	―	―	―	―

Psychemedics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.24
• 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 PMDI, the sentiment is Negative. The current price of 2.24 is below the 20-day moving average (MA) of 2.26, below the 50-day MA of 2.29, and below the 200-day MA of 2.26, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 53.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PMDI.

Psychemedics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAT	70 Outperform	$20.63B	31.54	40.82%	―	2.57%	8.31%
PRPO	67 Neutral	$21.14M	―	-25.29%	―	26.67%	44.02%
RDNT	66 Neutral	$4.15B	1,704.59	-3.65%	―	12.76%	-231.18%
Sector *	52 Neutral	$7.45B	0.27	-61.87%	2.30%	16.62%	1.04%
NSPR	50 Neutral	$68.01M	―	-113.95%	―	8.49%	6.09%
PMDI	42 Neutral	$13.65M	―	-31.54%	―	-11.16%	24.30%
HSDT	37 Underperform	$6.39M	―	-800.00%	―	-35.03%	57.39%