Sensus Healthcare (SRTS) AI Stock Analysis

• Market Cap: $55.73M
• Dividend Yield: N/A
• Average Volume (3M): 196.48K
• Price to Earnings (P/E): 48.7
• Beta (1Y): 0.98
• Revenue Growth: 3.30%
• EPS Growth: -112.70%
• Country: US
• Employees: 54
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Devices
• EPS (TTM): -0.06
• Shares Outstanding: 16,440,037
• 10 Day Avg. Volume: 106,260
• 30 Day Avg. Volume: 196,481
• 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: 1.00
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 2.52
• Enterprise Value/Ebitda: 19.43
• 1Y Price Target: $8.00
• Price Target Upside: 146.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: $3.50 ▲(7.69% Upside)

Sensus Healthcare's overall score is primarily influenced by its strong financial performance, despite cash flow challenges. The technical analysis indicates bearish momentum, and valuation metrics are unattractive due to recent losses. The earnings call presents a mixed outlook, with potential growth opportunities offset by current financial setbacks and reimbursement uncertainties.

Positive Factors

Fair Deal Program

The Fair Deal program is considered the company’s primary growth engine, facilitating increased installations and utilization.

Partnerships

The company engaged Radiology Oncology Systems as a primary distribution partner to hospital-based radiation oncology departments and freestanding oncology centers nationwide.

Reimbursement

Medicare proposed a physician fee schedule that would significantly increase reimbursement for the delivery of a code of SRT.

Negative Factors

Regulatory Challenges

A proposed Local Coverage Determination to limit the reimbursement for ultrasound has a negative impact on topline sales since May 2025.

Revenue and Earnings

The 2Q25 results showed revenue, gross margin, and GAAP EPS all below consensus and estimates, primarily due to a proposed Local Coverage Determination to limit reimbursement for ultrasound used with SRT-100 Vision.

Revenue Performance

Total revenue was $7.3M, representing a 21% YoY decline and missing our projection of $8.3M.

Sensus Healthcare Business Overview & Revenue Model

Company Description

Sensus Healthcare (SRTS) is a medical technology company that specializes in innovative solutions for the treatment of skin cancer and other dermatological conditions. The company primarily focuses on developing and marketing non-invasive therapies, including its flagship product, the Sensus SRT-100, which utilizes superficial radiation therapy for effective treatment. Sensus Healthcare operates in the healthcare sector, targeting dermatologists, oncologists, and healthcare facilities to enhance patient care and treatment outcomes.

How the Company Makes Money

Sensus Healthcare generates revenue through the sale of its medical devices, specifically the SRT-100 system and its associated accessories. The company also earns income from service contracts, maintenance agreements, and consumables related to the use of its devices. Additionally, Sensus Healthcare may benefit from strategic partnerships with healthcare providers and institutions, which can enhance its market reach and provide access to new customer segments. The company may also explore collaborations for research and development, further expanding its product offerings and potential revenue streams.

Sensus Healthcare Financial Statement Overview

Summary

Sensus Healthcare demonstrated strong revenue and profit growth, with a robust balance sheet characterized by low leverage and high equity. However, challenges remain in cash flow management, as indicated by negative free cash flow, which needs improvement to support the company's financial health.

Income Statement

Sensus Healthcare showed remarkable revenue growth of 71.3% from the previous year. The gross profit margin improved significantly to 58.4%, reflecting increased operational efficiency. Net profit margin also improved substantially to 15.9%, indicating enhanced profitability. However, the EBIT margin of 19.3% and EBITDA margin of 19.3% suggest room for improvement in controlling operating expenses.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 89.8%, demonstrating financial stability. The debt-to-equity ratio is low at 0.01, indicating minimal leverage and reduced financial risk. Return on equity improved significantly to 11.9%, showcasing effective utilization of shareholder funds. Overall, the balance sheet reflects solid financial health.

Cash Flow

Sensus Healthcare's free cash flow improved but remains negative, indicating potential challenges in cash management. The operating cash flow to net income ratio is negative, suggesting a need to enhance cash generation from operations. Despite these challenges, the free cash flow deficit has narrowed, showing some progress towards achieving positive cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.49M	41.81M	24.41M	44.53M	27.04M	9.58M
Gross Profit	22.12M	24.43M	14.06M	29.63M	16.99M	5.25M
EBITDA	2.87M	8.52M	79.00K	15.15M	4.73M	-6.10M
Net Income	1.80M	6.65M	485.00K	24.24M	4.12M	-6.84M
Balance Sheet
Total Assets	60.21M	62.16M	53.71M	56.73M	32.24M	28.01M
Cash, Cash Equivalents and Short-Term Investments	19.07M	22.06M	23.15M	25.52M	14.52M	14.91M
Total Debt	654.00K	602.00K	783.00K	1.02M	225.00K	1.38M
Total Liabilities	7.18M	6.34M	4.87M	8.67M	6.22M	6.51M
Stockholders Equity	53.03M	55.83M	48.84M	48.07M	26.02M	21.50M
Cash Flow
Free Cash Flow	4.64M	-1.11M	-2.37M	-1.57M	-414.00K	-792.73K
Operating Cash Flow	4.68M	-831.00K	-2.15M	-1.41M	-286.00K	-434.18K
Investing Cash Flow	-50.00K	-276.00K	-187.00K	14.84M	129.00K	7.03M
Financing Cash Flow	-285.00K	15.00K	-40.00K	-2.43M	-231.00K	210.01K

Sensus Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.25
• 50DMA: Negative
• 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 SRTS, the sentiment is Negative. The current price of 3.25 is below the 20-day moving average (MA) of 3.50, below the 50-day MA of 4.30, and below the 200-day MA of 5.48, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 36.29 is Neutral, neither overbought nor oversold. The STOCH value of 67.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRTS.

Sensus Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRTS	58 Neutral	$55.73M	48.68	-1.62%	―	3.30%	-112.70%
HYPR	57 Neutral	$95.08M	―	-77.26%	―	-9.59%	8.78%
Sector *	51 Neutral	$7.90B	-0.33	-41.69%	2.23%	23.45%	-1.99%
NSPR	50 Neutral	$101.80M	―	-123.51%	―	7.60%	-0.78%
CTSO	46 Neutral	$59.64M	―	-68.84%	―	-7.81%	65.39%
ICCM	46 Neutral	$74.19M	―	-230.80%	―	-16.46%	4.16%
RBOT	39 Underperform	$34.46M	―	-125.63%	―	―	6.48%

Sensus Healthcare Corporate Events

Sensus Healthcare Elects New Director at Annual Meeting

At the Annual Meeting of Stockholders held on May 27, 2025, Sensus Healthcare elected Anthony Petrelli as a Class I director for a three-year term. Stockholders approved an amendment to the 2017 Incentive Plan, extending its term and increasing the share issuance limit. Additionally, the compensation of the company’s executive officers for 2024 was approved on an advisory basis, and Berkowitz Pollack Brant Advisors + CPAs, LLP was ratified as the independent registered public accountant for the fiscal year ending December 31, 2025.