Mentice AB (MNTC) AI Stock Analysis

• Market Cap: €264.38M
• Dividend Yield: N/A
• Average Volume (3M): 19.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -0.02%
• EPS Growth: -85.98%
• Country: SE
• Employees: 131
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.01
• Shares Outstanding: 28,125,734
• 10 Day Avg. Volume: 26,429
• 30 Day Avg. Volume: 19,315
• PEG Ratio: -0.06
• Price to Book (P/B): 4.54
• Price to Sales (P/S): 2.25
• P/FCF Ratio: 440.50
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: kr15.00 ▲(10.29% Upside)

Mentice AB's overall stock score is primarily influenced by its strong technical indicators, suggesting positive short-term momentum. However, significant financial performance challenges, including negative profitability and cash flow issues, weigh heavily on the score. The lack of positive valuation metrics further limits the stock's appeal.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient production and pricing strategies, allowing the company to maintain profitability potential despite revenue challenges.

Low Leverage

Low leverage provides financial flexibility and reduces risk, enabling the company to invest in growth opportunities without significant debt burden.

Recurring Revenue Model

A recurring revenue model from maintenance and support services ensures steady cash flow and customer retention, contributing to long-term financial stability.

Negative Factors

Declining Revenue

Declining revenue reflects challenges in market demand or competitive positioning, which can impact the company's ability to sustain growth and profitability.

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and cost management issues, which can undermine financial health and investor confidence over time.

Cash Flow Challenges

Cash flow challenges restrict the company's ability to fund operations and invest in growth, potentially leading to liquidity issues and financial instability.

Mentice AB Business Overview & Revenue Model

Company Description

Mentice AB (publ) provides endovascular simulation solutions to teaching entities, healthcare systems, and medical device manufacturers. The company operates through Medical Device Industry, Healthcare Systems, and Strategic Alliances segments. It provides software modules in the areas of acute ischemic stroke intervention, atrial septal defect and patent foramen ovale occlusion, aortic valve implantation, endovascular aortic repair, below-the-knee intervention, carotid intervention, patient-specific simulation, coronary advanced and essentials, coronary intermediate, left atrial appendage occlusion, neurovascular coiling and thrombectomy, peripheral angiography, prostatic artery embolization, radiation safety, renal denervation, renal intervention, thoracic endovascular aortic repair, transarterial chemoembolization, transseptal puncture, uterine artery embolization, peripheral angiography, and vascular trauma and cardiac rhythm management, as well as supports interventionalists to transition from transfemoral to transradial access. The company also offers medical simulators for endovascular therapies, and simulator accessories and extensions for endovascular therapies; silicone vasculature for endovascular simulation; cardiac and vascular flow systems; neurovascular flow systems; mentice right heart cath app, a mobile solution for an interactive real-time exploration into the right heart catheterization procedure; mentice live learning center, a remote learning with its VIST G endovascular simulation platform. Its products are used to educate, train, and enhance the practitioners in skills. The company operates in Europe, the Middle East, and Africa; Asia Pacific region; and the Americas. The company was incorporated in 1998 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

Mentice AB generates revenue through multiple streams, primarily by selling its advanced simulation systems and software licenses to hospitals, medical institutions, and training centers. The company also offers maintenance and support services, which provide a recurring revenue model as clients require ongoing updates and technical assistance. Additionally, Mentice engages in partnerships with medical device manufacturers and educational institutions, enhancing their product offerings and expanding market reach. These collaborations often lead to co-development opportunities and joint marketing efforts, further contributing to the company's earnings.

Mentice AB Financial Statement Overview

Summary

Mentice AB demonstrates strong gross margins and a solid balance sheet with low leverage. However, persistent profitability issues and negative cash flows pose significant challenges. The company needs to focus on improving operational efficiency and profitability to enhance its financial health.

Income Statement

Mentice AB shows a strong gross profit margin of over 90% in the TTM, indicating efficient cost management. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. Revenue growth is modest at 4.92% in the TTM, but the consistent negative net income over the years highlights ongoing challenges in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio remains low at 0.20 in the TTM, suggesting a conservative leverage approach. However, the return on equity is negative, reflecting the company's inability to generate positive returns for shareholders. The equity ratio is stable, indicating a solid capital structure despite profitability issues.

Cash Flow

Mentice AB's cash flow situation is concerning, with negative operating and free cash flows in the TTM. Although there is a notable improvement in free cash flow growth, the operating cash flow to net income ratio is extremely low, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is also negative, further highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	274.49M	290.33M	273.61M	217.95M	185.06M	137.50M
Gross Profit	248.15M	257.25M	236.38M	188.94M	149.92M	104.11M
EBITDA	-2.34M	18.30M	28.87M	266.00K	1.44M	-3.90M
Net Income	-43.31M	-18.42M	-2.82M	-30.66M	-29.19M	-13.09M
Balance Sheet
Total Assets	278.51M	323.90M	322.53M	332.98M	261.90M	245.27M
Cash, Cash Equivalents and Short-Term Investments	39.62M	53.59M	59.12M	47.28M	12.70M	48.75M
Total Debt	16.54M	9.14M	9.56M	16.68M	14.70M	11.51M
Total Liabilities	152.53M	180.24M	163.55M	170.34M	125.02M	82.02M
Stockholders Equity	125.99M	143.66M	158.97M	162.63M	136.89M	163.25M
Cash Flow
Free Cash Flow	-22.03M	1.48M	29.53M	1.85M	-31.03M	5.20M
Operating Cash Flow	-8.07M	17.92M	36.52M	14.91M	-5.13M	30.53M
Investing Cash Flow	-13.96M	-16.44M	-16.18M	-32.28M	-25.90M	-24.97M
Financing Cash Flow	17.05M	-9.31M	-7.05M	48.99M	-5.78M	-3.98M

Mentice AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MNTC, the sentiment is Neutral. The current price of 13.6 is below the 20-day moving average (MA) of 14.38, above the 50-day MA of 11.96, and below the 200-day MA of 15.36, indicating a neutral trend. The MACD of 0.61 indicates Positive momentum. The RSI at 49.41 is Neutral, neither overbought nor oversold. The STOCH value of 6.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:MNTC.

Mentice AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAD.B	66 Neutral	€1.11B	47.83	6.93%	―	-5.80%	-65.99%
MNTC	52 Neutral	€264.38M	-4.33	-32.96%	―	-0.02%	-85.98%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BRAIN	50 Neutral	€144.94M	-3.93	-27.22%	―	16.38%	35.71%
ACARIX	46 Neutral	€299.93M	-4.61	-102.17%	―	21.88%	48.86%
BACTI.B	46 Neutral	€592.24M	―	-6.81%	―	-8.10%	62.08%
CLS.B	44 Neutral	€184.54M	―	-63.39%	―	14.18%	72.73%