Mentice AB (MNTC) AI Stock Analysis

• Market Cap: kr385.32M
• Dividend Yield: N/A
• Average Volume (3M): 19.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: kr14.00 ▲(4.48% Upside)

The score is primarily held back by persistent losses and negative operating/free cash flow despite strong gross margins and a conservatively leveraged balance sheet. Technicals are modestly supportive in the near term, but valuation remains challenged due to negative earnings and no provided dividend yield.

Positive Factors

High gross margin

A gross margin above 90% indicates very favorable unit economics driven by high-value software and content alongside hardware. This structural margin advantage provides capacity to fund R&D, customer support and sales expansion, and supports long-term profit potential if operating costs are controlled.

Conservative leverage

Low debt-to-equity (0.20) gives the company financial flexibility to invest in product development and go-to-market activities without heavy interest burdens. Conservative leverage reduces solvency risk during loss-making periods and supports funding options for durable growth initiatives.

Recurring and diversified revenue streams

A business model combining system sales with software licenses, subscriptions, maintenance and add‑on modules builds recurring revenue and higher lifetime value per customer. This mix enhances revenue visibility, supports upsell motions and strengthens long-term margins versus one-time hardware-only sales.

Negative Factors

Negative operating and free cash flow

Sustained negative operating and free cash flow strains liquidity and forces reliance on external financing or equity raises. Over time this limits capacity to invest in commercial scale-up and product development, and increases the risk profile until operations generate positive cash.

Persistent unprofitability

Continued negative EBIT and net margins signal the company has not yet converted strong gross margins into operating profits. Long-term shareholder value depends on sustainable operating leverage; persistent losses may require restructuring or capital raises that dilute returns if profitability is not achieved.

Weak revenue trend

A negative recent revenue growth rate suggests limited top-line momentum for a company selling training and simulation solutions. Slowing or declining revenue reduces the ability to scale recurring services, undermines operating leverage needed to reach profitability, and may reflect competitive or adoption headwinds.

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

Very strong gross margin (>90%) and low leverage (debt-to-equity 0.20) are positives, but the business remains unprofitable with negative EBIT/net margins and negative operating/free cash flow in the TTM, indicating ongoing challenges converting operations into sustainable profits and cash.

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: Negative
• Last Price: 13.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:MNTC, the sentiment is Negative. The current price of 13.4 is below the 20-day moving average (MA) of 13.67, below the 50-day MA of 13.85, and below the 200-day MA of 14.11, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 55.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	kr1.08B	45.65	6.93%	―	-5.80%	-65.99%
CLS.B	55 Neutral	kr243.10M	-4.47	-63.39%	―	14.18%	72.73%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MNTC	48 Neutral	kr385.32M	-8.33	-32.96%	―	-0.02%	-85.98%
BRAIN	48 Neutral	kr157.10M	-3.19	-27.22%	―	16.38%	35.71%
BACTI.B	46 Neutral	kr588.74M	-26.44	-6.81%	―	-8.10%	62.08%
ACARIX	41 Neutral	kr269.04M	-5.30	-102.17%	―	21.88%	48.86%