Profound Medical (PRN) AI Stock Analysis

• Market Cap: C$209.17M
• Dividend Yield: N/A
• Average Volume (3M): 9.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: 51.21%
• EPS Growth: 15.33%
• Country: CA
• Employees: 142
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Devices
• EPS (TTM): -0.50
• Shares Outstanding: 30,053,143
• 10 Day Avg. Volume: 17,750
• 30 Day Avg. Volume: 9,839
• PEG Ratio: 0.52
• Price to Book (P/B): 2.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.36
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 13.27
• Enterprise Value/Ebitda: -0.78
• 1Y Price Target: C$15.70
• Price Target Upside: 118.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: ―

Profound Medical's stock score reflects the company's strong revenue growth and strategic potential, balanced by operational inefficiencies and financial challenges. Technical indicators suggest caution due to bearish trends, while valuation remains a concern with negative earnings. Positive earnings call sentiment and future growth prospects are encouraging, yet immediate operational improvements are necessary for sustained success.

Positive Factors

Clinical Trials

The CAPTAIN study is the first-ever Level 1 study comparing two treatment modalities in prostate cancer, which is expected to be well-received by investors and commercial payors.

Financial Performance

Profound Medical announced preliminary Q4 2024 revenue of $4.1M-$4.2M, showing a growth of 105%-110% year over year.

Market Position

Profound Medical is well-positioned to tap into the massive prostate cancer and BPH markets with its TULSA technology.

Negative Factors

Equity Dilution

The target price for the stock mechanically reduces to $17.00 due to equity dilution.

Equity Financing

The issuance of new shares was at a 7% discount to the previous closing price.

Profound Medical Business Overview & Revenue Model

Company Description

Profound Medical Corp., together with its subsidiaries, operates as a commercial-stage medical device company that develops magnetic resonance guided ablation procedures for treatment of prostate disease, uterine fibroids, and palliative pain treatment in Canada, Germany, the United States, and Finland. Its lead product TULSA-PRO system used for magnetic resonance imaging scanner in hospitals and treatment facilities. The company also offers Sonalleve, a therapeutic platform for the treatment of uterine fibroids and palliative pain relief associated with metastases in bone, as well as non-invasive treatment of uterine fibroids. Profound Medical Corp. is headquartered in Mississauga, Canada.

How the Company Makes Money

Profound 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 for growth with increasing revenue. However, persistent losses, negative profit margins, and reliance on external financing highlight operational challenges. A strong equity base provides stability, but asset utilization and debt management require 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.

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.

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.39M	10.68M	7.20M	6.68M	6.87M	7.30M
	Gross Profit
7.62M	7.04M	4.38M	3.02M	2.95M	3.47M
	EBIT
-21.08M	-33.06M	-28.62M	-29.60M	-30.29M	-18.86M
	EBITDA
-35.95M	-32.13M	-27.72M	-34.63M	-28.65M	-19.50M
	Net Income Common Stockholders
-32.34M	-27.82M	-28.57M	-28.67M	-30.70M	-21.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.43M	54.91M	26.21M	46.52M	67.15M	83.91M
	Total Assets
60.86M	70.23M	43.91M	64.42M	86.78M	104.60M
	Total Debt
4.88M	5.12M	7.94M	8.23M	1.38M	1.68M
	Net Debt
-41.55M	-49.79M	-18.27M	-38.29M	-65.78M	-82.24M
	Total Liabilities
10.07M	9.81M	12.73M	12.42M	6.16M	7.25M
	Stockholders Equity
50.79M	60.42M	31.18M	52.00M	80.62M	97.35M
Cash Flow		Free Cash Flow
-26.64M	-23.45M	-22.30M	-25.80M	-22.95M	-20.92M
	Operating Cash Flow
-26.64M	-23.45M	-22.30M	-25.80M	-22.36M	-20.57M
	Investing Cash Flow
0.00	0.00	0.00	0.00	-593.00K	-350.00K
	Financing Cash Flow
34.02M	54.70M	1.46M	7.03M	5.95M	87.43M

Profound Medical Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.18
• 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 TSE:PRN, the sentiment is Neutral. The current price of 7.18 is above the 20-day moving average (MA) of 6.65, below the 50-day MA of 7.57, and below the 200-day MA of 9.97, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 54.27 is Neutral, neither overbought nor oversold. The STOCH value of 76.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:PRN.

Profound Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QIPT	65 Neutral	C$130.33M	―	-8.34%	―	0.69%	-95.27%
ASG	60 Neutral	C$26.25M	―	-20.84%	―	22.83%	44.58%
PRN	54 Neutral	C$209.17M	―	-66.14%	―	51.21%	15.33%
Sector *	53 Neutral	$5.24B	3.07	-43.58%	2.80%	16.87%	-0.11%
PINK	50 Neutral	C$38.94M	―	-163.62%	―	113.85%	11.38%
VPT	44 Neutral	C$20.40M	―	207.08%	―	280.56%	-7.28%
TLT	40 Underperform	C$44.60M	―	-214.26%	―	-3.45%	12.98%

Profound Medical Corporate Events

Profound Medical to Present at 2025 Healthcare Investor Conference

Profound Medical Corp. announced its participation in the 2025 Bloom Burton & Co. Healthcare Investor Conference, where management will present a business update. This participation underscores the company’s commitment to advancing its market presence and highlights its innovative technologies, such as TULSA-PRO® and Sonalleve®, which have significant implications for treating prostate diseases and uterine fibroids, respectively.

Spark’s Take on TSE:PRN Stock

According to Spark, TipRanks’ AI Analyst, TSE:PRN is a Neutral.

Profound Medical’s stock reflects mixed performance; strong revenue growth and strategic initiatives are offset by ongoing operational inefficiencies and financial challenges. Technical indicators suggest caution, and the valuation is hindered by sustained losses. Optimistic growth prospects from the earnings call offer potential, but strategic improvements are crucial for future success.

To see Spark’s full report on TSE:PRN stock, click here.

Profound Medical to Announce Q1 2025 Financial Results

Profound Medical Corp. is set to release its first quarter 2025 financial results on May 8, 2025, followed by a conference call to discuss the results and business developments. This announcement highlights the company’s ongoing efforts to strengthen its market position with its innovative medical technologies, potentially impacting stakeholders by showcasing its financial health and strategic direction.

Spark’s Take on TSE:PRN Stock

According to Spark, TipRanks’ AI Analyst, TSE:PRN is a Neutral.

Profound Medical’s stock is evaluated at a score of 50, reflecting mixed financial performance with strong revenue growth but persistent losses. Technical indicators suggest caution, while the valuation remains challenging due to negative earnings. The optimistic earnings call provides a positive outlook, but the company must address operational inefficiencies and manage expenses to capitalize on future growth opportunities.

To see Spark’s full report on TSE:PRN stock, click here.

Profound Medical Unveils Agenda for AUA 2025 Investor Event

Profound Medical Corp. announced details of its upcoming hybrid investor event during the American Urological Association’s Annual Meeting. The event will feature presentations on the TULSA procedure, which is a non-invasive treatment for prostate diseases, and new programs like TULSA-AI and TULSA+. These initiatives aim to enhance treatment options for benign prostatic hyperplasia and integrate with Siemens Healthineers’ MRI technology. The event underscores Profound Medical’s commitment to advancing its technology and strengthening its market position in non-invasive medical treatments.

Spark’s Take on TSE:PRN Stock

According to Spark, TipRanks’ AI Analyst, TSE:PRN is a Neutral.

Profound Medical’s stock is evaluated at a score of 50, reflecting mixed financial performance with strong revenue growth but persistent losses. Technical indicators suggest caution, while the valuation remains challenging due to negative earnings. The optimistic earnings call provides a positive outlook, but the company must address operational inefficiencies and manage expenses to capitalize on future growth opportunities.

To see Spark’s full report on TSE:PRN stock, click here.

Profound Medical to Host Investor Event at AUA 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.

Profound Medical to Announce 2024 Financial Results and Host Conference Call

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.