SurModics (SRDX) AI Stock Analysis

• Market Cap: $542.17M
• Dividend Yield: N/A
• Average Volume (3M): 195.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -0.02%
• EPS Growth: -1196.44%
• Country: US
• Employees: 389
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Devices
• EPS (TTM): 0.06
• Shares Outstanding: 14,297,623
• 10 Day Avg. Volume: 239,309
• 30 Day Avg. Volume: 195,092
• 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: 0.78
• Enterprise Value/Revenue: 3.51
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: -51.54
• 1Y Price Target: $37.00
• Price Target Upside: -1.70% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $37.00 ▼(-1.70% Downside)

SurModics' overall stock score is primarily impacted by its challenging financial performance and unattractive valuation. However, the positive technical indicators provide some optimism. The recent cyber incident adds a layer of risk, but it is mitigated by effective management response.

Positive Factors

Financial Performance

Surmodics' Q3 financial results exceeded expectations with revenue and adjusted EPS beating estimates.

Future Outlook

Surmodics increased its financial guidance for FY/25, reflecting confidence in its future revenue and earnings potential.

Revenue Growth

Thrombectomy revenue grew 35%, indicating strong performance in this segment.

Negative Factors

Legal Challenges

The proposed acquisition by GTCR is facing legal challenges due to antitrust concerns from the FTC.

Merger Expenses

Merger-related expenses have been significant, with costs piling up as litigation continues.

Revenue Weakness

Ongoing weakness in Surveil DCB revenue continues to act as a material headwind.

SurModics Business Overview & Revenue Model

Company Description

Surmodics, Inc., together with its subsidiaries, provides surface modification technologies for intravascular medical devices, and chemical components for in vitro diagnostic immunoassay tests and microarrays in the United States and internationally. It operates in two segments, Medical Device and In Vitro Diagnostics (IVD). The Medical Device segment engages in the provision of surface modification coating technologies to enhance access, deliverability, and predictable deployment of medical devices; and drug-delivery coating technologies to provide site-specific drug-delivery from the surface of a medical device for coronary, peripheral, neuro-vascular and structural heart, and other markets, as well as design, development, and manufacturing of interventional medical devices, primarily balloons and catheters, including drug-coated balloons for peripheral arterial disease treatment and other applications. The IVD segment designs, develops, and manufactures component products and technologies for diagnostic immunoassay, as well as molecular test and biomedical research applications. This segment offers protein stabilization reagents, substrates, surface coatings, and antigens. The company was founded in 1979 and is headquartered in Eden Prairie, Minnesota.

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 faces challenges with declining revenues and consistent losses, impacting profitability metrics negatively. Despite having no debt in the latest period, the company struggles with cash flow generation. The balance sheet remains robust with a high equity ratio, providing some financial stability.

Income Statement

The company shows a declining trend in revenue and profitability. The TTM gross profit margin is healthy at approximately 73.4%, but the net profit margin is negative due to consistent losses. The company has not achieved positive EBIT or EBITDA margins in the recent TTM period, indicating operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable with no total debt in the TTM period, improving the debt-to-equity ratio to zero. However, the return on equity is negative due to net losses. The equity ratio is strong, indicating a solid base of equity compared to total assets.

Cash Flow

The company has shown a decline in free cash flow, with negative free cash flow in the TTM period. However, the operating cash flow to net income ratio suggests some efficiency in converting net income to cash flows despite losses. Free cash flow to net income ratio is not favorable due to negative free cash flow.

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: Positive
• Last Price: 37.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRDX, the sentiment is Positive. The current price of 37.64 is above the 20-day moving average (MA) of 34.91, above the 50-day MA of 31.77, and above the 200-day MA of 33.38, indicating a bullish trend. The MACD of 1.68 indicates Negative momentum. The RSI at 72.98 is Negative, neither overbought nor oversold. The STOCH value of 86.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRDX.

SurModics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLPT	61 Neutral	$297.91M	―	-85.68%	―	19.68%	-13.17%
Sector *	60 Neutral	HK$18.14B	5.28	-4.00%	3.33%	10.16%	-17.39%
VREX	58 Neutral	$447.37M	―	-25.57%	―	-1.36%	-479.49%
SRDX	54 Neutral	$542.17M	―	-15.36%	―	-0.02%	-1196.44%
TMCI	53 Neutral	$412.52M	―	-46.89%	―	7.67%	23.79%
PACB	46 Neutral	$363.45M	―	-189.52%	―	-17.35%	-19.34%
SENS	46 Neutral	$385.67M	―	-102.61%	―	5.94%	25.16%

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.

The most recent analyst rating on (SRDX) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on SurModics stock, see the SRDX Stock Forecast page.