SurModics (SRDX) AI Stock Analysis

• Market Cap: $435.51M
• Dividend Yield: N/A
• Average Volume (3M): 248.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -0.02%
• EPS Growth: -1196.44%
• Country: US
• Employees: 389
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.06
• Shares Outstanding: 14,297,623
• 10 Day Avg. Volume: 140,835
• 30 Day Avg. Volume: 248,418
• 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: 0.97
• Enterprise Value/Revenue: 3.51
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: -51.54
• 1Y Price Target: $32.00
• Price Target Upside: 3.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 43 Neutral
• Price Target: $32.00 ▲(3.83% Upside)

SurModics' overall stock score is primarily impacted by its challenging financial performance and bearish technical indicators. The negative valuation metrics further weigh on the score. While the company has managed to contain the impact of a recent cyber incident, the potential risks associated with it add to the cautious outlook.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, supporting long-term profitability potential.

Conservative Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to navigate economic fluctuations more effectively.

Diversified Revenue Model

A diversified revenue model reduces dependency on a single income stream, enhancing financial stability and growth potential.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in market demand or competitive positioning, impacting long-term growth prospects.

Negative Profitability

Negative profitability suggests operational inefficiencies and challenges in cost management, affecting long-term financial health.

Cybersecurity Risks

Cybersecurity risks can lead to operational disruptions and legal challenges, potentially impacting reputation and financial performance.

SurModics Business Overview & Revenue Model

Company Description

SurModics, Inc. (SRDX) is a leading provider of medical device and in vitro diagnostic technologies, primarily serving the healthcare industry. The company specializes in developing innovative coating technologies, drug delivery systems, and biomaterials, which are used in various applications such as cardiovascular, ophthalmology, and other specialty markets. SurModics focuses on enhancing the performance and safety of medical devices through its advanced product offerings and services, aimed at improving patient outcomes.

How the Company Makes Money

SurModics generates revenue through a diversified model that includes product sales, royalties, and contract services. Key revenue streams consist of sales from its proprietary coating and drug delivery technologies, which are used by medical device manufacturers, as well as collaborations with partners for product development. The company also earns revenue from licensing agreements associated with its intellectual property. Significant partnerships with major medical device companies further contribute to its earnings, as they often involve development contracts and milestone payments, which enhance SurModics' financial stability and growth potential.

SurModics Financial Statement Overview

Summary

SurModics is facing significant financial challenges with declining revenues and negative profitability. Despite a strong gross profit margin and conservative leverage, the negative net income and cash flow issues highlight the need for strategic improvements.

Income Statement

SurModics has faced declining revenues with a negative growth rate of -63.7% in TTM, indicating significant challenges in maintaining sales momentum. The gross profit margin remains strong at 73.1%, but the net profit margin is negative at -14.6%, reflecting ongoing profitability issues. EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is relatively low at 0.29, indicating a conservative leverage position. However, the return on equity is negative at -15.6%, highlighting challenges in generating returns for shareholders. The equity ratio stands at 65.5%, showing a solid equity base relative to total assets.

Cash Flow

SurModics has experienced a significant decline in free cash flow, with a growth rate of -52.4% in TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is positive at 1.88, suggesting some ability to generate cash relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	120.80M	126.08M	132.58M	99.95M	105.14M	94.86M
Gross Profit	88.30M	93.05M	61.02M	29.00M	41.23M	29.36M
EBITDA	-8.23M	4.73M	15.15M	-12.22M	14.67M	5.94M
Net Income	-17.63M	-11.54M	-1.54M	-27.27M	4.24M	1.12M
Balance Sheet
Total Assets	169.82M	178.56M	185.73M	158.36M	194.59M	168.76M
Cash, Cash Equivalents and Short-Term Investments	32.73M	40.11M	45.35M	19.00M	38.87M	61.10M
Total Debt	32.58M	33.24M	33.25M	14.81M	13.71M	3.78M
Total Liabilities	58.51M	59.66M	65.82M	49.97M	54.51M	37.71M
Stockholders Equity	111.31M	118.90M	119.91M	108.39M	140.09M	131.06M
Cash Flow
Free Cash Flow	-3.55M	-3.24M	7.60M	-20.59M	9.11M	10.34M
Operating Cash Flow	-1.88M	248.00K	10.51M	-17.22M	15.39M	14.01M
Investing Cash Flow	5.94M	-2.94M	-6.82M	6.23M	-25.24M	-9.07M
Financing Cash Flow	-2.75M	-2.95M	18.41M	-375.00K	10.23M	-4.65M

SurModics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRDX, the sentiment is Negative. The current price of 30.82 is below the 20-day moving average (MA) of 32.66, below the 50-day MA of 34.24, and below the 200-day MA of 32.70, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 30.08 is Neutral, neither overbought nor oversold. The STOCH value of 21.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRDX.

SurModics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLPT	60 Neutral	548.08M	-24.70	-74.50%	―	19.68%	-13.17%
VREX	57 Neutral	508.79M	-3.69	-29.10%	―	-1.36%	-479.49%
SENS	46 Neutral	382.90M	-4.50	-327.88%	―	5.94%	25.16%
TMCI	44 Neutral	428.31M	-8.51	-50.38%	―	7.67%	23.79%
SRDX	43 Neutral	$435.51M	―	-15.36%	―	-0.02%	-1196.44%
PACB	41 Neutral	375.46M	-0.54	-61.16%	―	-17.35%	-19.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

SurModics Corporate Events

SurModics Faces Cyber Incident with IT Systems

On June 5, 2025, Surmodics, Inc. experienced a cyber incident where a threat actor gained unauthorized access to its IT systems, rendering some data and systems temporarily unavailable. The company promptly initiated containment measures, worked with third-party IT experts, and restored critical IT systems, ensuring customer orders and shipments continued without significant disruption. The company is still analyzing the scope of the data accessed but has not found evidence of data misuse. Surmodics expects its cyber insurance to cover most related expenditures, though it remains exposed to risks such as management distraction, potential litigation, and regulatory scrutiny.