Sonendo (SONX) AI Stock Analysis

• Market Cap: $128.22K
• Dividend Yield: N/A
• Average Volume (3M): 1.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: -27.73%
• EPS Growth: 45.38%
• Country: US
• Employees: 129
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): N/A
• Shares Outstanding: 427,401
• 10 Day Avg. Volume: 342
• 30 Day Avg. Volume: 1,412
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 54.02
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 0.58
• Enterprise Value/Ebitda: -0.25
• 1Y Price Target: $0.50
• Price Target Upside: 61.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: $0.50 ▲(61.29% Upside)

Sonendo's overall stock score is primarily impacted by its weak financial performance and valuation. The company's negative profitability and high leverage are significant concerns. While technical analysis shows some neutral momentum, the stock's bearish trend and negative valuation metrics weigh heavily on its score.

Sonendo Business Overview & Revenue Model

Company Description

Sonendo, Inc., a commercial-stage medical technology company, develops, manufactures, and commercializes devices for root canal therapy in the United States and Canada. It provides GentleWave, a tooth decay treatment device for cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure. The company also offers SoundSeal, a material used to build and create a sealing platform on the top of the crown; and Sonendo-branded liquid solution of EDTA that is used to help debride and disinfect the root canal system. In addition, it provides The Digital Office, a practice management software to enable an integrated digital office for dental practitioners. The company was formerly known as Dentatek Corporation and changed its name to Sonendo, Inc. in March 2011. Sonendo, Inc. was incorporated in 2006 and is headquartered in Laguna Hills, California.

How the Company Makes Money

Sonendo generates revenue primarily through the sale of its GentleWave System, which includes both the capital equipment and the consumables used in each procedure. Additionally, the company may earn income from service contracts and warranties associated with the GentleWave System. Partnerships with dental practices and endodontic specialists are key to expanding their market presence. The company may also engage in educational and training programs to enhance adoption rates among dental professionals, thus driving further sales of its products.

Sonendo Financial Statement Overview

Summary

Sonendo faces significant financial challenges, including negative profitability, high leverage, and cash flow constraints. Despite these issues, there are some positive indicators, such as a reduction in cash burn and improvements in gross profit, which suggest potential for financial recovery. The company needs to focus on enhancing revenue growth, improving operational efficiencies, and managing its capital structure to achieve better financial stability.

Income Statement

Sonendo's income statement reveals a company struggling with profitability and revenue growth. The gross profit margin has been inconsistent, and the net profit margin is negative, indicating substantial losses. Revenue has decreased from the previous year, highlighting growth challenges. Margins like EBIT and EBITDA are also negative, suggesting operational inefficiencies. Despite these challenges, there is a slight improvement in gross profit, which may indicate some potential for margin recovery.

Balance Sheet

The balance sheet of Sonendo indicates high leverage with a concerning debt-to-equity ratio due to low stockholders' equity. The equity ratio is low, suggesting a heavy reliance on debt financing. While total assets have decreased, liabilities remain high, posing a risk to financial stability. The return on equity is negative, reflecting ongoing profitability issues. Overall, the balance sheet highlights financial instability and the need for improved capital management.

Cash Flow

Sonendo's cash flow statement shows some positive signs with a significant decrease in free cash flow losses. However, operating cash flow remains negative, indicating ongoing operational cash constraints. The company has managed to reduce its capital expenditures, which helps in conserving cash. While the free cash flow to net income ratio remains unfavorable, the reduction in cash burn is a positive sign for future financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.70M	43.87M	41.66M	33.20M	23.35M
Gross Profit	11.84M	10.72M	10.48M	8.34M	3.88M
EBITDA	-26.61M	-54.77M	-51.00M	-41.29M	-39.13M
Net Income	-28.03M	-60.92M	-57.05M	-48.50M	-46.66M
Balance Sheet
Total Assets	31.27M	78.16M	137.28M	115.50M	76.14M
Cash, Cash Equivalents and Short-Term Investments	11.63M	46.78M	91.45M	84.64M	51.72M
Total Debt	17.85M	40.35M	38.95M	29.20M	31.77M
Total Liabilities	26.07M	49.74M	55.33M	43.44M	330.03M
Stockholders Equity	5.19M	28.42M	81.95M	72.06M	-253.89M
Cash Flow
Free Cash Flow	-24.81M	-46.99M	-62.43M	-50.58M	-39.46M
Operating Cash Flow	-24.65M	-46.06M	-61.07M	-48.60M	-38.54M
Investing Cash Flow	45.81M	42.40M	-74.43M	-1.97M	-916.00K
Financing Cash Flow	-24.95M	4.00K	68.53M	83.50M	-983.00K

Sonendo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.31
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONX, the sentiment is Positive. The current price of 0.31 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.27, and below the 200-day MA of 1.36, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 23.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SONX.

Sonendo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AXGN	69 Neutral	789.58M	-162.35	-4.15%	―	17.17%	72.68%
ECOR	51 Neutral	37.39M	-2.90	-157.56%	―	30.16%	22.51%
SONX	48 Neutral	$128.22K	―	-199.60%	―	-27.73%	45.38%
NUWE	44 Neutral	3.14M	-0.10	-162.70%	―	-7.72%	99.54%
SINT	42 Neutral	12.53M	-0.44	-283.10%	―	-40.47%	96.14%
PAVM	42 Neutral	9.18M	0.36	178.66%	―	-73.36%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%