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Rxsight, Inc. (RXST)
:RXST
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RxSight
(NASDAQ:RXST)
47Neutral
Positive Factors
Competitive Advantage
There is still a lot to like about the company's story, including its highly differentiated technology and improving margin profile.
Market Position
RXST saw a strong quarter for Light Delivery Devices placements.
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%.
Negative Factors
Financial Guidance
The company's guidance for the full year has been significantly reduced, with expected revenues now lower than prior forecasts.
Market Challenges
A weakened premium IOL market and sequential launches of competitive premium IOLs have contributed to the company's challenges.
Utilization Rates
The utilization rate falling to 26.4 in the quarter is very troubling.
RxSight (RXST) vs. S&P 500 (SPY)
Market Cap
$608.49M
Dividend YieldN/A
Average Volume (3M)1.14M
Price to Earnings (P/E)―
Beta (1Y)1.53
Revenue Growth57.08%
EPS Growth49.93%
CountryUS
Employees498
SectorHealthcare
Sector Strength74
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.71
Shares Outstanding40,620,240
10 Day Avg. Volume1,074,122
30 Day Avg. Volume1,138,752
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.91
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit11.75
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.00Price Target Upside73.56% Upside
Rating ConsensusHold
Number of Analyst Covering10
RxSight Business Overview & Revenue Model
Company DescriptionRxSight, Inc., a medical technology company, engages in the research and development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery in the United States and internationally. It offers RxSight system that enables doctors to customize and enhance the visual acuity for patients after cataract surgery. The company's RxSight system includes RxSight light delivery device, an office-based light treatment device that delivers UV light in a programmed pattern to modify the LAL based on the visual correction needed to achieve desired vision after cataract surgery. It primarily serves cataract doctors. The company was formerly known as Calhoun Vision, Inc. and changed its name to RxSight, Inc. in February 2017. RxSight, Inc. was incorporated in 1997 and is headquartered in Aliso Viejo, California.
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
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.65
Positive
Balance Sheet
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.55
Neutral
Cash Flow
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.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Neutral
14.98
Price Trends
21.82
Negative
27.99
Negative
38.79
Negative
Market Momentum
-2.15
Negative
33.71
Neutral
69.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RXST, the sentiment is Neutral. The current price of 14.98 is above the 20-day moving average (MA) of 14.90, below the 50-day MA of 21.82, and below the 200-day MA of 38.79, indicating a neutral trend. The MACD of -2.15 indicates Negative momentum. The RSI at 33.71 is Neutral, neither overbought nor oversold. The STOCH value of 69.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $580.76M | ― | -18.38% | ― | 20.37% | 34.10% | |
52 Neutral | $542.80M | ― | -22.87% | ― | 7.08% | 20.45% | |
52 Neutral | $5.28B | 3.75 | -42.72% | 2.86% | 17.70% | 2.03% | |
51 Neutral | $730.79M | ― | -9.99% | ― | 17.81% | 54.69% | |
49 Neutral | $595.45M | ― | -20.86% | ― | 11.89% | 79.18% | |
47 Neutral | $608.49M | ― | -12.43% | ― | 57.08% | 49.93% | |
46 Neutral | $583.94M | ― | 26.25% | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
RXST
RxSight
14.98
-46.70
-75.71%
OFIX
Orthofix
13.55
-0.05
-0.37%
AXGN
AxoGen
16.48
10.69
184.63%
SIBN
SI-Bone
13.68
-0.52
-3.66%
BVS
Bioventus
7.26
3.29
82.87%
CBLL
Ceribell, Inc.
16.28
-9.22
-36.16%
RxSight Earnings Call Summary
Earnings Call Date:Feb 25, 2025
(Q1-2025)
| % Change Since: -48.72%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Neutral
The earnings call revealed strong revenue growth and customer satisfaction but was overshadowed by the revision of revenue guidance due to macroeconomic challenges and market competition. While European regulatory approval presents a long-term opportunity, short-term challenges persist, affecting performance and outlook.Q1-2025 Updates
Positive Updates
Revenue Growth
Preliminary first quarter 2025 revenue was $37.9 million, up 28% compared to the year-ago quarter.
European Regulatory Approval
RxSight reported European regulatory approval for their LDD and LAL, marking a significant step towards expanding into the EU market.
Customer Satisfaction
Customer satisfaction reached an all-time high of 97%, indicating strong approval of RxSight's products and services.
LDD Installed Base Growth
The LDD installed base grew to 1,044 units, up 43% compared to the end of the first quarter of 2024.
Negative Updates
Revenue Guidance Revision
The full-year revenue guidance was reduced from $185 million-$197 million to $160 million-$175 million, indicating a decrease in expected growth from 32%-41% to 14%-25%.
Sequential Revenue Decline
Revenue for Q1 2025 was down 6% sequentially from Q4 2024.
Premium IOL Market Softening
The premium IOL market experienced a decline, affected by macroeconomic factors and competitive launches, causing a year-over-year drop in same-store LAL sales.
LAL Sales Decline
LAL sales were 27,579, up 36% year-over-year but sequentially down 5% from Q4 2024.
Operating Expense Guidance Increase
Operating expense guidance was adjusted higher to $150 million-$160 million due to increased customer interaction costs.
Company Guidance
During the recent RxSight conference call, the company provided revised guidance for fiscal year 2025, reflecting anticipated revenue in the range of $160 million to $175 million, down from the previous estimate of $185 million to $197 million. This adjustment reflects an implied revenue growth of 14% to 25% compared to 2024, a reduction from the initial 32% to 41% growth projection. The company anticipates selling more Light Delivery Devices (LDDs) in 2025 than in 2024, despite potential economic headwinds affecting Light Adjustable Lens (LAL) procedures. First-quarter 2025 revenue was reported at $37.9 million, marking a 28% increase from the same period in the previous year but a 6% sequential decline from the fourth quarter of 2024. The gross margin guidance remains unchanged at 71% to 73%, while operating expenses are adjusted to $150 million to $160 million, down from the prior forecast of $165 million to $170 million, reflecting a focus on aligning expenses with revenue growth.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.