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Sanara MedTech (SMTI)
NASDAQ:SMTI
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Sanara MedTech
(NASDAQ:SMTI)
Rating:50Neutral
Price Target:
$30.00
▼(-0.79%Downside)
Positive Factors
Financial Performance
Cash position strengthened with $20.7M in cash and sufficient capital for near-term operations.
Revenue Growth
Revenue grew 26% in 1Q25, driven primarily by increased demand for CellerateRX Surgical Activated Collagen as a result of increased penetration of medical facilities that represent existing accounts as well as expansion into additional medical facilities.
Strategic Agreements
Sanara entered an exclusive license and distribution agreement with Biomimetic Innovations Ltd for a breakthrough device, which could enrich Sanara’s existing surgical product offerings.
Negative Factors
Financial Risk
The company reported a net loss of $9.7M for FY2024, although it was less than the estimated loss.
Market Risks
Risks include lower-than-projected revenue growth, inability to secure additional customers, and potential dilution risk.
Sales Volatility
Approximately $1.8M of BIASURGE sales in 4Q24 was attributable to a unique situation (Hurricane Helene), and BIASURGE sales are expected to normalize in 1Q25.
Sanara MedTech (SMTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$259.26M
Dividend YieldN/A
Average Volume (3M)42.94K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth34.65%
EPS Growth-128.56%
CountryUS
Employees141
SectorHealthcare
Sector Strength40
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.41
Shares Outstanding8,887,853
10 Day Avg. Volume56,232
30 Day Avg. Volume42,941
Financial Highlights & Ratios
PEG Ratio-22.23
Price to Book (P/B)8.60
Price to Sales (P/S)0.00
P/FCF Ratio-57.09
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit4.29
Enterprise Value/Ebitda-33.58
Forecast
1Y Price Target
$41.67Price Target Upside37.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Sanara MedTech Business Overview & Revenue Model
Company DescriptionSanara MedTech (SMTI) is a medical technology company focused on developing and commercializing products for the surgical and chronic wound care sectors. The company is dedicated to improving outcomes for patients by providing innovative solutions and services that address various aspects of wound and skin care. Its product offerings include advanced wound care dressings, surgical absorbents, and related technologies aimed at enhancing the healing process and reducing healthcare costs.
How the Company Makes MoneySanara MedTech generates revenue through the sale of its advanced wound care and surgical products to healthcare providers, hospitals, and clinics. The company's revenue model is based on the distribution and sale of its proprietary wound care products, which are designed to improve patient outcomes and reduce the overall cost of care. Key revenue streams include direct sales to healthcare institutions and partnerships with distributors who help expand the reach of its products. Additionally, Sanara MedTech may engage in strategic partnerships or licensing agreements to further commercialize its technologies and increase market penetration.
Sanara MedTech Earnings Call Summary
Earnings Call Date:May 14, 2025
(Q1-2025)
| % Change Since: -13.85%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong performance in revenue growth, particularly in the Sanara Surgical segment, with significant improvements in gross margins and adjusted EBITDA. However, the company faced challenges such as increased net loss and operating expenses, as well as higher debt obligations and interest expenses. While there are significant positive strides, particularly in product sales and distributor expansion, the financial challenges balance the overall outlook.Q1-2025 Updates
Positive Updates
Sanara Surgical Revenue Growth
Sanara Surgical delivered net revenue of $23.4 million, representing 26% growth year-over-year, driven by a 28% increase in soft tissue repair product sales.
Strong Performance in Product Sales
Sales of CellerateRX Surgical and BIASURGE products fueled performance, and bone fusion products also saw an 18% increase year-over-year.
Enhanced Gross Margins
Gross profit increased by $5 million to $21.6 million, with a gross margin increase of approximately 240 basis points to 92% of net revenue.
Adjusted EBITDA Improvement
Sanara Surgical Segment adjusted EBITDA increased by $1.5 million year-over-year to $2.7 million.
Expansion of Distributor Network
Distributor network expanded to over 400 partners, up from over 250 in Q1 2024, providing increased sales coverage.
Tissue Health Plus Technology Platform Release
The first release of THP's technology platform, including the THP CoPilot app, was announced on May 1st, marking a pivotal milestone in wound care.
Negative Updates
Increased Net Loss
Net loss for the first quarter was $3.5 million, compared to a net loss of $1.8 million last year, with significant losses in the Tissue Health Plus segment.
Higher Operating Expenses
Operating expenses increased by $5.5 million or 30%, driven by a $5.2 million increase in selling, general, and administrative expenses.
Increased Debt Obligations
Principal debt obligations increased to $42.8 million from $30.5 million as of December 31, 2024.
Increased Interest Expense
Other expense for the first quarter was $1.4 million, compared to $0.3 million last year, due to higher interest expenses related to the CRG Term Loan.
Company Guidance
During the first quarter of 2025 earnings call, Sanara MedTech reported a net revenue of $23.4 million for its Sanara Surgical team, marking a 26% increase year-over-year. The company's growth was largely driven by a 28% rise in sales of its soft tissue repair products, totaling $20.5 million. Sales of bone fusion products also grew by 18% to $2.9 million. Despite a net loss for the Sanara Surgical Segment that increased by $200,000 to $600,000, adjusted EBITDA rose by $1.5 million to $2.7 million. Gross margins were enhanced, with gross profit increasing by 30% to $21.6 million, and the gross margin improved by approximately 240 basis points to 92% of net revenue. Operating expenses rose by 30% to $23.7 million, primarily due to a 32% increase in selling, general, and administrative expenses. The company also focused on expanding its distributor network, securing agreements with over 400 distributor partners, and increasing penetration in existing healthcare facilities. The Tissue Health Plus segment invested in developing a value-based wound care strategy and prepared to launch its pilot program in the second quarter. As of March 31, 2025, Sanara MedTech held $20.7 million in cash and $42.8 million in principal debt obligations, with $12.25 million of available borrowing capacity.Sanara MedTech Financial Statement Overview
Summary
Sanara MedTech is experiencing robust revenue growth, yet it struggles with profitability and cash flow management. The company's high gross margins are overshadowed by negative net income and cash flows. Increasing leverage and reliance on financing activities highlight potential risks. While the company demonstrates growth potential, it must address operational inefficiencies to achieve sustainable profitability.Income Statement
Sanara MedTech has shown significant revenue growth over the years, with a 40% increase from 2023 to TTM (Trailing-Twelve-Months). However, profitability remains a concern as indicated by negative net profit margins and EBIT margins throughout the periods. The gross profit margin is strong at approximately 89% for TTM, but consistent net losses and negative EBITDA margins highlight ongoing operational challenges.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has increased over time, reaching 1.22 in TTM, indicating higher leverage. The equity ratio has decreased, reflecting a higher proportion of debt financing. Despite these challenges, Sanara MedTech maintains a reasonable level of stockholders' equity relative to assets, and the return on equity has been negative due to persistent net losses.50
Neutral
Cash Flow
Sanara MedTech faces challenges with its cash flows, indicated by negative free cash flow and operating cash flow in TTM. The company has managed to raise capital through financing activities, which provides a temporary cushion. However, the free cash flow to net income ratio remains negative, pointing to ongoing cash burn relative to net losses.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 91.57M | 86.67M | 64.99M | 45.84M | 24.14M | 15.59M |
| Gross Profit | 81.88M | 78.53M | 57.14M | 39.48M | 21.83M | 13.97M |
| EBITDA | -1.27M | -1.86M | -289.10K | -11.85M | -7.22M | -4.02M |
| Net Income | -11.43M | -9.66M | -4.30M | -8.09M | -7.31M | -4.38M |
Balance Sheet | ||||||
| Total Assets | 59.54M | 88.09M | 73.87M | 61.04M | 36.40M | 9.83M |
| Cash, Cash Equivalents and Short-Term Investments | 20.69M | 15.88M | 5.15M | 8.96M | 18.65M | 455.37K |
| Total Debt | 44.72M | 32.29M | 11.79M | 819.22K | 425.44K | 481.38K |
| Total Liabilities | 46.43M | 49.18M | 29.28M | 19.32M | 6.24M | 3.99M |
| Stockholders Equity | 36.67M | 39.40M | 44.83M | 41.83M | 30.64M | 6.15M |
Cash Flow | ||||||
| Free Cash Flow | -2.31M | -229.63K | -3.51M | -6.30M | -5.56M | -5.68M |
| Operating Cash Flow | -428.30K | -23.78K | -3.25M | -5.55M | -4.81M | -4.03M |
| Investing Cash Flow | -11.73M | -6.61M | -10.21M | -3.51M | -5.28M | -2.74M |
| Financing Cash Flow | 30.01M | 17.37M | 9.64M | -627.35K | 28.30M | 622.33K |
Sanara MedTech Technical Analysis
Positive
30.24
Price Trends
30.15
Positive
31.01
Negative
32.44
Negative
Market Momentum
0.02
Negative
57.83
Neutral
73.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMTI, the sentiment is Positive. The current price of 30.24 is above the 20-day moving average (MA) of 28.76, above the 50-day MA of 30.15, and below the 200-day MA of 32.44, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.83 is Neutral, neither overbought nor oversold. The STOCH value of 73.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMTI.
Sanara MedTech Risk Analysis
Sanara MedTech disclosed 49 risk factors in its most recent earnings report. Sanara MedTech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sanara MedTech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $187.06M | 15.25 | 10.59% | 2.12% | -19.92% | -16.22% | |
71 Outperform | $150.73M | 17.04 | 28.29% | ― | 29.65% | 131.78% | |
63 Neutral | $184.04M | ― | -179.82% | ― | 1.50% | -20.00% | |
57 Neutral | $227.39M | 25.27 | -7.77% | ― | -46.95% | -237.44% | |
55 Neutral | $372.77M | ― | -20.46% | ― | -12.56% | 78.70% | |
52 Neutral | $7.49B | 0.22 | -61.87% | 2.28% | 16.62% | 1.08% | |
50 Neutral | $259.26M | ― | -28.58% | ― | 34.65% | -128.56% |
* Healthcare Sector Average
Performance Comparison
SMTI
Sanara MedTech
30.24
1.44
5.00%
ANGO
AngioDynamics
9.64
3.51
57.26%
OSUR
Orasure Technologies
3.03
-1.27
-29.53%
PDEX
Pro-Dex
48.99
31.44
179.15%
STXS
Stereotaxis
2.21
0.29
15.10%
UTMD
Utah Medical Products
57.26
-10.71
-15.76%
Sanara MedTech Corporate Events
Executive/Board ChangesShareholder Meetings
Sanara MedTech Updates Investor Presentation Online
Neutral
May 28, 2025
On May 22, 2025, Sanara MedTech Inc. held its Annual Meeting of Shareholders, where a total of 6,781,075 shares were represented. During the meeting, the election of eight directors to the Board and the ratification of Weaver and Tidwell, L.L.P. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, were approved by the shareholders. Additionally, on May 27, 2025, the company updated its investor presentation on its website, emphasizing the importance of monitoring their Investor Relations section for material information.
The most recent analyst rating on (SMTI) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Sanara MedTech stock, see the SMTI Stock Forecast page.
Executive/Board Changes
Sanara MedTech’s CAO Michael McNeil Announces Retirement
Neutral
May 23, 2025
On May 19, 2025, Michael D. McNeil announced his retirement from his roles as Chief Accounting Officer and Chief Administrative Officer at Sanara MedTech Inc., effective August 19, 2025. The company is in discussions with McNeil for a consulting role to aid in the transition. Elizabeth B. Taylor, the current Chief Financial Officer, will take over McNeil’s responsibilities as the principal accounting officer.
The most recent analyst rating on (SMTI) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Sanara MedTech stock, see the SMTI Stock Forecast page.
Regulatory Filings and Compliance
Sanara MedTech to Present at Investor Showcase
Neutral
Apr 22, 2025
Sanara MedTech Inc. announced that it will be presenting an investor presentation at the Planet MicroCap Showcase in Las Vegas on April 23, 2025. The presentation, which is part of the company’s ongoing communication with investors and analysts, is intended to provide summary information in the context of the company’s SEC filings and public announcements.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.