RxSight (RXST) AI Stock Analysis

Compare

168 Followers

RXST Dividends

Top Page

RxSight

(NASDAQ:RXST)

52Neutral

RxSight's stock score reflects strong revenue growth and promising product developments, as highlighted in the earnings call. However, significant challenges remain with profitability and cash flow, compounded by negative technical indicators and a demanding valuation. The company needs to address these areas to improve its financial health and investor confidence.

Positive Factors

Market Opportunity

RXST could benefit from a competitor's recall that likely isn't baked into guidance.

Market Valuation

The shares are trading at about 4.1x NTM EV/Sales, below peers at 5.3x NTM EV/Sales, and RXST's estimated CAGR of approximately 26% on a 3-year basis is still ahead of peers at 18%.

Technology and Innovation

There is still a lot to like about the company's story, including its highly differentiated technology and improving margin profile.

Negative Factors

Competitive Pressure

A weakened premium IOL market and sequential launches of competitive premium IOLs have contributed to the company's challenges.

Financial Performance

RXST preannounced revenue missed consensus by approximately 5%.

Guidance and Forecasting

The company's guidance for the full year has been significantly reduced, with expected revenues now lower than prior forecasts.

RxSight (RXST) vs. S&P 500 (SPY)

Market Cap

$584.28M

Dividend YieldN/A

Average Volume (3M)1.00M

Price to Earnings (P/E)―

Beta (1Y)1.56

Revenue Growth57.08%

EPS Growth49.93%

CountryUS

Employees498

SectorHealthcare

Sector Strength66

IndustryMedical - Devices

Share Statistics

EPS (TTM)-0.71

Shares Outstanding40,490,543

10 Day Avg. Volume1,340,591

30 Day Avg. Volume1,000,656

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)7.19

Price to Cash Flow (P/CF)-59.00

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

$27.60

Price Target Upside91.27% Upside

Rating ConsensusHold

Number of Analyst Covering10

RxSight Business Overview & Revenue Model

Company DescriptionRxSight, Inc. (RXST) is a medical technology company specializing in the development and commercialization of advanced intraocular lens systems for cataract surgery. The company's flagship product, the RxSight Light Adjustable Lens (LAL), is the first and only FDA-approved intraocular lens that can be adjusted post-surgery to improve refractive outcomes. RxSight operates primarily in the ophthalmology sector, focusing on innovative solutions that enhance visual acuity for patients undergoing cataract procedures.

How the Company Makes MoneyRxSight generates revenue through the sale of its Light Adjustable Lens (LAL) and the associated Light Delivery Device (LDD) used to customize vision correction after cataract surgery. The company's revenue model is based on direct sales to ophthalmic surgeons and medical institutions, where they provide both the lens and the necessary equipment to perform the post-operative adjustments. RxSight also benefits from partnerships and collaborations with eye care professionals and clinics, which help expand its market reach and drive adoption of its technology. Additionally, the company may engage in research collaborations and licensing agreements to further enhance its product offerings and revenue potential.

RxSight Financial Statement Overview

Summary

RxSight shows promising revenue and gross profit growth, with a sound equity position. However, profitability and cash flow generation remain significant challenges, which the company needs to address to ensure long-term financial health. Investors should monitor the company's progress in achieving profitability and improving cash flow dynamics.

Income Statement

Positive

RxSight has demonstrated strong revenue growth, with a 57% increase from 2023 to 2024. The gross profit margin improved to 70.7%, indicating efficient production and sales processes. However, the company remains unprofitable, with negative net and EBIT margins, pointing to ongoing challenges in controlling operating expenses.

Balance Sheet

Neutral

The balance sheet is characterized by a high equity ratio of 88.3%, suggesting strong capitalization. However, the company has no net debt, which is a positive sign, but the negative stockholders' equity in earlier years and fluctuating liabilities present potential risks, despite recent improvements in equity.

Cash Flow

Neutral

Cash flow metrics highlight concerns, with zero operating cash flow in 2024, indicating challenges in generating cash from operations. Despite this, the company has managed to secure financing to support its activities, evidenced by positive financing cash flows. The absence of free cash flow growth is a concern for long-term sustainability.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
139.93M	89.08M	49.01M	22.59M	14.68M
	Gross Profit
98.94M	53.77M	21.33M	4.52M	1.71M
	EBIT
-36.86M	-50.09M	-63.32M	-52.79M	-35.41M
	EBITDA
-23.76M	-41.04M	-57.78M	-41.01M	32.15M
	Net Income Common Stockholders
-27.45M	-48.61M	-66.76M	-48.69M	27.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
237.22M	127.18M	105.80M	159.33M	68.97M
	Total Assets
318.56M	182.55M	150.16M	192.72M	100.68M
	Total Debt
12.30M	3.01M	44.99M	44.93M	30.75M
	Net Debt
-4.41M	-6.68M	33.16M	20.57M	16.76M
	Total Liabilities
37.33M	22.19M	60.26M	54.48M	398.21M
	Stockholders Equity
281.24M	160.36M	89.90M	138.24M	-297.53M
Cash Flow		Free Cash Flow
-22.39M	-46.41M	-61.24M	-46.65M	-37.74M
	Operating Cash Flow
-16.95M	-41.59M	-58.85M	-44.71M	-35.20M
	Investing Cash Flow
-99.31M	-22.13M	39.95M	-81.91M	15.59M
	Financing Cash Flow
123.32M	61.52M	6.33M	137.34M	25.24M

RxSight Technical Analysis

Technical Analysis Sentiment

Negative

Last Price14.43

Price Trends

50DMA

24.90

Negative

100DMA

30.75

Negative

200DMA

40.54

Negative

Market Momentum

MACD

-3.39

Positive

RSI

23.85

Positive

STOCH

25.46

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RXST, the sentiment is Negative. The current price of 14.43 is below the 20-day moving average (MA) of 19.72, below the 50-day MA of 24.90, and below the 200-day MA of 40.54, indicating a bearish trend. The MACD of -3.39 indicates Positive momentum. The RSI at 23.85 is Positive, neither overbought nor oversold. The STOCH value of 25.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RXST.

RxSight Risk Analysis

RxSight disclosed 87 risk factors in its most recent earnings report. RxSight reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

RxSight Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIBN	62 Neutral	$587.98M	―	-18.38%	―	20.37%	34.10%
AXGN	54 Neutral	$690.43M	―	-9.99%	―	17.81%	54.69%
RXST	52 Neutral	$584.28M	―	-12.43%	―	57.08%	49.93%
BVS	52 Neutral	$640.80M	―	-20.86%	―	11.89%	79.18%
Sector *	51 Neutral	$5.19B	3.13	-40.94%	2.95%	17.94%	2.00%
OFIX	47 Neutral	$508.46M	―	-22.87%	―	7.08%	20.45%
CBLL	46 Neutral	$532.47M	―	26.25%	―	―	―

* Healthcare Sector Average

Performance Comparison

RXST

RxSight

14.20

-38.14

-72.87%

OFIX

Orthofix

12.92

-0.16

-1.22%

AXGN

AxoGen

15.18

8.32

121.28%

SIBN

SI-Bone

13.45

-2.11

-13.56%

BVS

Bioventus

7.50

3.21

74.83%

CBLL

Ceribell, Inc.

14.93

-10.57

-41.45%

RxSight Earnings Call Summary

Earnings Call Date: Feb 25, 2025 | % Change Since: -50.60% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance with significant revenue growth, gross margin expansion, and positive adjusted net income. However, the company continues to face net losses and increased operating expenses. The introduction of new product features and FDA approvals positions the company well for future growth.

Highlights

Record Growth in Revenue and Sales

Fourth quarter 2024 revenue was $40.2 million, up 41% year-over-year. Full-year 2024 revenue grew by 57% to $139.9 million. A record 29,069 LALs were sold in Q4 2024, up 61% from Q4 2023.

Strong Gross Margin Expansion

Gross margin for Q4 2024 expanded to 71.6%, compared to 61.8% in Q4 2023. Full-year gross profit margin increased to 70.7% from 60.4% in 2023.

Significant Increase in Installed Base

Ended 2024 with an LDD installed base of 971 units, up 46% compared to 666 units at the end of 2023.

Successful Stock Raise

Raised $107.5 million net of fees and expenses from a confidentially marketed public offering, ending 2024 with $237.2 million in cash, cash equivalents, and short-term investments.

Positive Adjusted Net Income

Adjusted net income for Q4 2024 was $1.3 million or $0.03 per basic and diluted share.

FDA Approvals and New Product Features

Received FDA approval for an additional LDD functionality that allows customization of asphericity of LAL, scheduled for release in the second half of 2025.

Lowlights

Net Loss Reported

Net loss in Q4 2024 was $5.9 million, or $0.15 per share. Full-year 2024 net loss was $27.5 million, though improved from $48.6 million in 2023.

Increased Operating Expenses

Total operating expenses for full-year 2024 increased by 31% to $135.8 million, driven by higher SG&A and R&D expenses.

Company Guidance

During the fourth quarter of 2024 earnings call, RxSight, Inc. provided guidance for 2025, projecting full-year revenue to range between $185 million and $197 million, representing a year-over-year growth of 32% to 41%. The company expects its gross margin to be between 71% and 73%, reflecting an increase in revenue mix from higher-margin Light Adjustable Lens (LAL) procedures. Operating expenses are anticipated to rise by 22% to 25%, ranging from $165 million to $170 million, with significant investments in sales, marketing, and research and development, including stock-based compensation expenses of $22 million to $25 million. RxSight, Inc. aims to expand its presence in the premium cataract market, with continued growth driven by increased adoption of its adjustable intraocular lens technology and new advancements in its product offerings.

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.