Spectral Medical (EDT) AI Stock Analysis

• Market Cap: C$371.54M
• Dividend Yield: N/A
• Average Volume (3M): 78.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 34.85%
• EPS Growth: -62.50%
• Country: CA
• Employees: 29
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.11
• Shares Outstanding: 292,549,600
• 10 Day Avg. Volume: 98,063
• 30 Day Avg. Volume: 78,934
• PEG Ratio: 3.66
• Price to Book (P/B): -5.10
• Price to Sales (P/S): 61.48
• P/FCF Ratio: -15.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: C$1.50 ▲(18.11% Upside)

Spectral Medical's overall stock score is primarily impacted by its weak financial performance and technical indicators, which indicate ongoing challenges. However, positive corporate events, including promising trial results and strategic initiatives, provide some optimism for future prospects.

Positive Factors

Revenue Growth

The company has demonstrated significant revenue growth, which indicates increasing demand for its products and potential market expansion.

Market Demand

Rising sepsis cases and focus on advanced therapeutics enhance demand for Spectral Medical's core product, supporting long-term growth.

Strategic Partnerships

Collaborations with medical institutions and companies can enhance product offerings and expand market reach, supporting sustainable growth.

Negative Factors

Financial Stability

Negative equity and rising debt levels indicate potential solvency issues, which could limit the company's ability to invest in growth.

Cash Flow Challenges

Persistent negative cash flow suggests difficulties in sustaining operations without external financing, impacting long-term viability.

Profitability Concerns

Ongoing losses and negative profit margins highlight operational challenges, questioning the company's ability to achieve profitability.

Spectral Medical Business Overview & Revenue Model

Company Description

Spectral Medical Inc., together with its subsidiaries, focuses on the development and commercialization of products for the treatment of septic shock and renal disease in North America. The company markets Endotoxin Activity Assay, a rapid in vitro diagnostic test for the detection of components of gram negative bacterial cell wall; and Polymyxin B Hemoperfusion, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream. It also develops and manufactures monoclonal and polyclonal antibodies, recombinant cardiac proteins, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies; and develops platform for renal replacement therapy. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was incorporated in 1991 and is headquartered in Toronto, Canada.

How the Company Makes Money

Spectral Medical generates revenue primarily through the sale of its medical devices, specifically the Toraymyxin product, which is sold to hospitals and healthcare providers treating critically ill patients. The company also engages in strategic partnerships and collaborations with other medical institutions and companies to enhance its product offerings and expand market reach. Additionally, it may explore licensing agreements and research grants, contributing to its revenue streams. The increasing prevalence of sepsis and the growing focus on advanced therapeutic solutions in critical care settings further drive demand for its products.

Spectral Medical Financial Statement Overview

Summary

Spectral Medical faces significant financial challenges, characterized by consistent losses and negative cash flows. Increasing total debt and negative equity raise concerns about financial stability and solvency. The company's ability to improve its financial health is uncertain without a strategic turnaround.

Income Statement

Revenue has shown volatility with a decline from 2019 to 2020, followed by fluctuations in subsequent years. The company has consistently reported negative net income, leading to negative net profit margins. EBITDA margin is also negative, indicating operational challenges. Despite a slight increase in gross profit in 2024, profitability remains a concern.

Balance Sheet

The company shows a negative stockholders' equity position since 2020, indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, but total debt has increased significantly, raising leverage concerns. Total liabilities have grown, impacting financial stability.

Cash Flow

Operating cash flow remains negative, with no positive free cash flow reported in the past years. While financing cash flow has been positive, it primarily supports operating activities, not growth. The negative free cash flow to net income ratio indicates cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.71M	2.29M	1.60M	1.67M	2.00M	2.10M
Gross Profit	1.82M	1.02M	662.00K	983.00K	1.16M	1.47M
EBITDA	-36.83M	-11.97M	-13.96M	-7.18M	-6.38M	-8.76M
Net Income	-41.70M	-15.40M	-15.66M	-11.28M	-8.79M	-9.10M
Balance Sheet
Total Assets	8.13M	5.32M	5.21M	12.00M	11.55M	8.16M
Cash, Cash Equivalents and Short-Term Investments	5.89M	2.99M	2.95M	8.41M	8.89M	5.81M
Total Debt	20.96M	14.93M	8.56M	7.57M	582.00K	667.00K
Total Liabilities	76.79M	32.87M	21.76M	14.55M	7.47M	8.83M
Stockholders Equity	-68.66M	-27.55M	-16.55M	-2.55M	4.08M	-669.00K
Cash Flow
Free Cash Flow	-9.14M	-8.85M	-10.91M	-9.93M	-9.18M	-639.00K
Operating Cash Flow	-9.11M	-8.82M	-10.72M	-9.90M	-8.70M	-324.00K
Investing Cash Flow	-194.00K	-27.00K	-185.00K	-33.00K	-325.00K	-297.00K
Financing Cash Flow	9.44M	8.88M	5.44M	9.46M	12.16M	5.18M

Spectral Medical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EDT, the sentiment is Negative. The current price of 1.27 is below the 20-day moving average (MA) of 1.28, below the 50-day MA of 1.38, and above the 200-day MA of 1.09, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 24.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EDT.

Spectral Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPH	74 Outperform	C$383.08M	16.00	16.32%	―	94.28%	5.23%
BUX	58 Neutral	C$50.44M	-29.63	―	―	-21.89%	26.36%
KSI	55 Neutral	C$464.29M	-360.74	-2.45%	―	33.27%	86.18%
PRN	54 Neutral	C$309.48M	-5.49	-127.60%	―	72.03%	-1.47%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EDT	47 Neutral	C$371.54M	-8.72	―	―	34.85%	-62.50%
SONA	40 Underperform	C$51.98M	-16.20	-2846.90%	―	―	10.97%

Spectral Medical Corporate Events

Spectral Medical Reports Positive Tigris Trial Results and Prepares for FDA Submission

Spectral Medical announced positive results from its Phase 3 Tigris trial, which demonstrated significant survival benefits for patients with endotoxic septic shock using its PMX treatment. The company is preparing for a Premarket Approval submission to the FDA, now targeted for Q1 2026, and is collaborating with Vantive on commercialization efforts. This progress positions Spectral for a strong market entry and potential FDA approval, which could significantly impact its operations and market positioning.

Spectral Medical Files Base Shelf Prospectus to Raise $100 Million

Spectral Medical Inc. has filed a final short form base shelf prospectus with Canadian securities regulators, allowing it to qualify the distribution of up to $100 million in securities over a 25-month period. This move is part of the company’s strategy to expand its financial capabilities and support its ongoing clinical trials and operations. Additionally, Spectral revised its Annual Information Form to include updates on the Tigris clinical trial and disclose a director’s past involvement with a bankrupt corporation. These actions are expected to enhance transparency and potentially strengthen investor confidence.

Spectral Medical’s Study Highlights High-Risk Septic Shock Subgroup, Bolstering PMX Therapy Rationale

Spectral Medical announced the publication of a study in Critical Care Explorations that identifies endotoxic septic shock (ESS) as a high-risk subgroup with a significantly higher mortality rate, strengthening the rationale for its PMX therapy. The study’s findings support Spectral’s theranostic strategy of combining EAA diagnostics with PMX therapy, potentially enhancing its market positioning and supporting its upcoming FDA submission for commercialization in the U.S.

Spectral Medical Sponsors Unite for Sepsis Symposium, Highlights Personalized Treatment

Spectral Medical Inc. announced its sponsorship of the Unite for Sepsis Symposium in Chicago, where it will present on personalizing sepsis treatment. This involvement underscores Spectral’s commitment to enhancing sepsis care through individualized approaches, potentially impacting the company’s operations by strengthening its industry positioning and stakeholder relationships.