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Profound Medical (TSE:PRN)
TSX:PRN
Top Page
Profound Medical
(TSX:PRN)
50Neutral
Positive Factors
Clinical Advancements
Profound’s CAPTAIN trial is expected to provide the first ever Level 1 clinical trial data in prostate cancer, which could highlight the superiority of TULSA over traditional treatments.
Growth Strategy
Profound reported Q4 results mostly in line with expectations and guided to 70%-75% growth this year, with the opportunity to reach triple-digit growth rates next year and beyond.
Market Position
TULSA is now the only ablative technology of any type or indication to reach Ambulatory Payment Classification (APC) level 7, while all other prostate cancer treatment modalities are at level 6.
Negative Factors
Equity Dilution
The target price for the stock mechanically reduces to $17.00 due to equity dilution.
Market Risks
The issuance of new shares was at a 7% discount to the previous closing price, but shares were trading above this issue price, indicating investor confidence.
Operational Challenges
The company's goal of 75 TULSA installs by year-end seems unlikely to be achieved.
Profound Medical (PRN) vs. S&P 500 (SPY)
Market Cap
C$202.77M
Dividend YieldN/A
Average Volume (3M)7.62K
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth51.21%
EPS Growth15.33%
CountryCA
Employees142
SectorHealthcare
Sector Strength73
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.54
Shares Outstanding30,039,808
10 Day Avg. Volume5,937
30 Day Avg. Volume7,623
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)15.88
Price to Cash Flow (P/CF)-7.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.23Price Target Upside199.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Profound Medical Business Overview & Revenue Model
Company DescriptionProfound Medical (PRN) is a Canadian-based medical technology company that operates within the healthcare sector, focusing on the development and commercialization of innovative therapeutic technologies. The company's core product, TULSA-PRO, is a minimally invasive technology that combines real-time MRI, robotically-driven transurethral ultrasound, and closed-loop temperature feedback control for the precise ablation of prostate tissue.
How the Company Makes MoneyProfound Medical generates revenue primarily through the sale and leasing of its TULSA-PRO systems to hospitals, clinics, and medical institutions that specialize in urology and prostate cancer treatment. The company also earns money from recurring revenue streams such as service contracts, consumables, and software upgrades related to its technology. Key partnerships with healthcare providers and collaborations with research institutions further enhance its market penetration and revenue potential. Profound Medical may also engage in direct sales efforts and distribution agreements to expand its reach in international markets.
Profound Medical Financial Statement Overview
Summary
Profound Medical shows potential growth with increasing revenue, but faces challenges in profitability and cash flow. Strong equity position adds stability, yet operational inefficiencies and reliance on external financing need strategic focus.Income Statement
Profound Medical has shown consistent revenue growth, with a 48.3% increase in 2024. However, the company has faced persistent losses with a negative EBIT and net income, leading to negative profit margins. This indicates operational challenges and a need for strategic restructuring to achieve profitability.45
Neutral
Balance Sheet
The company maintains a strong equity base with an equity ratio of 86.0% in 2024, reflecting financial stability. However, the negative return on equity and high net debt levels are concerning, indicating that the company needs to improve its asset utilization and manage debt more efficiently.55
Neutral
Cash Flow
Operating cash flow remains negative, reflecting ongoing operational struggles. While free cash flow increased in 2024 due to higher financing activities, the company's reliance on external financing could pose risks if not managed carefully. The lack of positive cash flow from operations is a critical area for improvement.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 10.68M | 7.20M | 6.68M | 6.87M | 7.30M | Gross Profit |
| 7.04M | 4.38M | 3.02M | 2.95M | 3.47M | EBIT |
| -33.06M | -28.62M | -29.60M | -30.29M | -18.86M | EBITDA |
| -32.13M | -27.72M | -34.63M | -28.65M | -19.50M | Net Income Common Stockholders |
| -27.82M | -28.57M | -28.67M | -30.70M | -21.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 54.91M | 26.21M | 46.52M | 67.15M | 83.91M | Total Assets |
| 70.23M | 43.91M | 64.42M | 86.78M | 104.60M | Total Debt |
| 5.12M | 7.94M | 8.23M | 1.38M | 1.68M | Net Debt |
| -49.79M | -18.27M | -38.29M | -65.78M | -82.24M | Total Liabilities |
| 9.81M | 12.73M | 12.42M | 6.16M | 7.25M | Stockholders Equity |
| 60.42M | 31.18M | 52.00M | 80.62M | 97.35M |
| Cash Flow | Free Cash Flow | |||
| -23.45M | -22.30M | -25.80M | -22.95M | -20.92M | Operating Cash Flow |
| -23.45M | -22.30M | -25.80M | -22.36M | -20.57M | Investing Cash Flow |
| 0.00 | 0.00 | 0.00 | -593.00K | -350.00K | Financing Cash Flow |
| 54.70M | 1.46M | 7.03M | 5.95M | 87.43M |
Profound Medical Technical Analysis
Negative
6.75
Price Trends
8.99
Negative
9.75
Negative
10.75
Negative
Market Momentum
-0.84
Positive
27.89
Positive
51.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PRN, the sentiment is Negative. The current price of 6.75 is below the 20-day moving average (MA) of 7.85, below the 50-day MA of 8.99, and below the 200-day MA of 10.75, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 27.89 is Positive, neither overbought nor oversold. The STOCH value of 51.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PRN.
Profound Medical Risk Analysis
Profound Medical disclosed 68 risk factors in its most recent earnings report. Profound Medical reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Profound Medical Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Performance Comparison
TSE:PRN
Profound Medical
6.66
-4.03
-37.70%
TSE:TH
Theratechnologies
3.58
1.78
98.89%
TSE:NEO
Neo Performance Materials Inc
10.09
4.37
76.40%
Profound Medical Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -34.72% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
Overall, the earnings call reflects a positive outlook with significant achievements in revenue growth, improved margins, and a strengthened commercial organization. Despite continued net losses and increased expenses, the company is optimistic about future growth driven by new clinical data, reimbursement improvements, and strategic expansions.Highlights
Record Fourth Quarter Revenue
Profound Medical achieved record revenue of $4.2 million in Q4 2024, marking a 108% increase from $2 million in the same period of 2023.
Improved Gross Margin
The gross margin for Q4 2024 was 71%, up from 52% in Q4 2023, indicating improved profitability.
Significant Reduction in Net Loss
Net loss in Q4 2024 was $4.9 million, a 45% improvement compared to a net loss of $8.9 million in Q4 2023.
Strong Cash Position
As of December 31, 2024, Profound had cash reserves of $54.9 million, indicating financial stability.
Successful Clinical Trials and Presentations
TULSA-PRO was featured in 17 presentations at major society meetings, showcasing its precision and flexibility in prostate disease treatment.
Expansion of Commercial Organization
A complete turnaround of the commercial organization was achieved with the recruitment of a world-class sales team, aiming for significant growth.
Positive Market and Reimbursement Outlook
With Medicare reimbursement in place, there is confidence in robust growth, with expectations of high double-digit revenue growth in 2025.
Lowlights
Increased Operating Expenses
Total operating expenses in Q4 2024 increased to $11.3 million compared to $9.8 million in Q4 2023.
Continued Net Loss
Despite improvements, the company still recorded a net loss of $4.9 million in Q4 2024.
Uncertain Private Insurance Payments
There is ongoing work to secure payments from private insurers, with efforts focused on obtaining preauthorization and favorable reimbursement terms.
Company Guidance
During the Profound Medical Fourth Quarter and Full Year 2024 Financial Results Conference Call, the company reported a record revenue of $4.2 million for Q4 2024, a 108% increase from $2 million in the same period in 2023. The revenue was composed of $2.7 million from recurring revenue and $1.5 million from one-time capital equipment sales. The gross margin improved significantly to 71% from 52% in Q4 2023. Operating expenses rose to $11.3 million from $9.8 million in the previous year, but the net loss was reduced by 45% to $4.9 million or $0.20 per share, compared to $8.9 million or $0.42 per share in Q4 2023. The company ended the year with $54.9 million in cash. Profound Medical anticipates high double-digit growth in 2025 and triple-digit growth starting in 2026, driven by the adoption of its TULSA-PRO technology and strategic commercial initiatives, including the introduction of new AI modules and expanded reimbursement opportunities.Profound Medical Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Profound Medical to Host Investor Event at AUA 2025
Positive
Mar 26, 2025
Profound Medical Corp. announced it will host a hybrid investor event during the American Urological Association’s Annual Meeting in Las Vegas on April 28, 2025. The event will feature presentations on the TULSA-PRO system, including its application in treating prostate diseases and the progress of the TULSA+ program, which integrates Siemens Healthineers’ MRI technology. This event highlights Profound’s commitment to advancing its medical technologies and enhancing its market position in the treatment of prostate diseases, potentially impacting stakeholders by showcasing the efficacy and versatility of its solutions.
Business Operations and StrategyFinancial Disclosures
Profound Medical to Announce 2024 Financial Results and Host Conference Call
Neutral
Feb 13, 2025
Profound Medical Corp. is set to release its fourth quarter and full year 2024 financial results on March 6, 2025. The announcement is significant as it provides stakeholders with insights into the company’s financial health and strategic developments. The results will be discussed further in a conference call, offering a platform for management to outline business progress and future directions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.