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Zomedica (ZOMDF)
OTHER OTC:ZOMDF
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Zomedica
(OTC:ZOMDF)
Select Model
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Rating:47Neutral
Price Target:―
Zomedica's stock score reflects mixed financial performance with revenue growth but persistent profitability challenges. The technical analysis shows weak momentum, and the valuation is impacted by a negative P/E ratio. Despite strong earnings call highlights, increased net loss and delisting risks present concerns.
Positive Factors
Revenue Growth
Consistent revenue growth over 14 consecutive quarters demonstrates strong market demand and effective sales strategies, supporting long-term business expansion.
Global Expansion Initiatives
International expansion through new partnerships enhances market presence and diversifies revenue streams, reducing dependency on domestic markets.
Strong Gross Margins
High gross margins indicate efficient cost management and pricing power, which can sustain profitability as the company scales.
Negative Factors
Profitability Challenges
Increasing net losses highlight ongoing profitability issues, which may hinder reinvestment and long-term financial health.
Assisi Product Sales Decline
Declining sales in key products like Assisi can indicate market saturation or competitive pressures, affecting future revenue potential.
Potential Delisting Risk
Delisting risk could limit access to capital markets and reduce investor confidence, impacting the company's ability to finance growth.
Zomedica (ZOMDF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$75.36M
Dividend YieldN/A
Average Volume (3M)2.43M
Price to Earnings (P/E)―
Beta (1Y)0.87
Revenue Growth10.20%
EPS Growth-35.75%
CountryUS
Employees144
SectorHealthcare
Sector Strength45
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-0.01
Shares Outstanding979,949,650
10 Day Avg. Volume1,820,838
30 Day Avg. Volume2,427,286
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap-0.21
Enterprise Value/Revenue-0.60
Enterprise Value/Gross Profit-1.08
Enterprise Value/Ebitda0.29
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Zomedica Business Overview & Revenue Model
Company DescriptionZomedica Pharmaceuticals Corp. is a veterinary health company focused on providing innovative diagnostic and therapeutic products for companion animals such as dogs and cats. Operating within the veterinary pharmaceuticals and diagnostics sector, Zomedica aims to improve the quality of pet care by developing products that enhance the capabilities of veterinarians to diagnose and treat their animal patients effectively. Their core offerings include diagnostic platforms and other veterinary medical devices.
How the Company Makes MoneyZomedica Pharmaceuticals generates revenue primarily through the sale of its veterinary diagnostic and therapeutic products to veterinary clinics and hospitals. The company's key revenue streams include direct sales of its diagnostic platforms, such as Truforma, which provides point-of-care testing for veterinarians. Zomedica also earns through partnerships with veterinary distributors and clinics, which help expand their market reach and facilitate the adoption of their products. Additionally, revenue growth may be supported by ongoing research and development efforts aimed at expanding their product portfolio and improving existing solutions.
Zomedica Earnings Call Summary
Earnings Call Date:Mar 13, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Neutral
Zomedica's earnings call highlighted strong revenue growth, especially in the diagnostics segment, and successful international expansion. However, these positives were countered by significant challenges, including the delisting from the NYSE and an increased net loss. The company's strong liquidity position and product innovation are promising, but these are tempered by market and operational challenges.Q4-2024 Updates
Positive Updates
Record Quarterly Revenue
Zomedica achieved a record quarterly revenue of $7.9 million for Q4 2024, reflecting an 8% growth over the prior year quarter.
Significant Growth in Diagnostics Segment
The Diagnostics segment saw a 109% year-over-year increase driven by the growing adoption of TRUFORMA assays and contributions from TRUVIEW and VetGuardian product lines.
International Expansion
Zomedica expanded its global reach by obtaining CE marking for multiple products and signing strategic partnerships with leading distributors in Europe, the Middle East, and other markets, opening up new revenue opportunities.
Launch of New Products
Multiple new products and innovations were launched, including new TRUFORMA assays, the Vetigel Hemostatic Gel, and enhancements to the TRUVIEW platform.
Strong Liquidity Position
The company reported having over $71 million in liquidity with no debt, indicating a strong financial base.
Negative Updates
NYSE Delisting
Zomedica was delisted from the NYSE American Exchange due to failure to meet the minimum share price requirement, resulting in a transition to the OTCQB Market.
Decline in Share Price
The company's share price has faced significant pressure, falling below $0.20 and leading to challenges in investor perception and market cap.
Operating Expenses
Total operating expenses for the year were $54.5 million, up from $48.9 million in 2023, marking an 11% increase.
Net Loss
Zomedica reported a net loss of $47 million for the year, an increase from the $34.5 million net loss in the prior year.
Company Guidance
During the Zomedica Fourth Quarter 2024 financial results conference call, CEO Larry Heaton highlighted the company's achievements, including record revenues for the quarter at $7.9 million, marking 8% year-over-year growth. This contributed to a full-year revenue of $27.3 million, demonstrating strong performance in both the therapeutic devices and diagnostics segments. Heaton emphasized the success of their products, such as TRUFORMA and VetGuardian, which saw year-over-year growth of 65% and 95%, respectively. Additionally, the company maintained a healthy gross margin of 70.3%, exceeding the target range. Zomedica's liquidity stood strong with over $71 million, and the company reported a net loss of $7.2 million for the quarter. Heaton addressed concerns about the recent delisting from the NYSE American Exchange, explaining the transition to the OTCQB market and affirming the company's commitment to continue driving growth and achieving profitability.Zomedica Financial Statement Overview
Summary
Zomedica Pharmaceuticals is seeing revenue growth but struggles with profitability due to high operational costs. The strong equity position and low leverage offer financial stability, but negative cash flow highlights challenges in covering expenses and limits growth potential.Income Statement
Zomedica Pharmaceuticals has shown a significant revenue growth from the previous year, with a TTM revenue of $26.7 million compared to $25.2 million last year. However, the company is facing challenges with profitability as indicated by negative EBIT and net income margins, suggesting high operational expenses relative to revenue.45
Neutral
Balance Sheet
The balance sheet reflects a strong equity position with an equity ratio of 94.7% which indicates financial stability. However, the high negative net income impacts the return on equity, showing inefficiencies in generating profits from shareholder investments. The debt-to-equity ratio is low, signifying minimal leverage, which reduces financial risk.60
Neutral
Cash Flow
The company reported negative free cash flow, indicating challenges in covering operating expenses and capital expenditures from revenue. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting reported earnings into cash flow.40
Negative
| Breakdown | TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.73M | 25.19M | 18.93M | 4.13M | 0.00 | 0.00 |
| Gross Profit | 14.77M | 17.32M | 13.65M | 3.05M | -530.02K | -787.61K |
| EBITDA | -54.27M | -29.39M | -15.34M | -19.57M | -16.38M | -19.00M |
| Net Income | -62.19M | -34.53M | -17.02M | -18.38M | -16.92M | -19.82M |
Balance Sheet | ||||||
| Total Assets | 214.12M | 253.20M | 279.61M | 280.40M | 66.14M | 4.18M |
| Cash, Cash Equivalents and Short-Term Investments | 76.88M | 90.50M | 115.09M | 194.95M | 61.99M | 510.59K |
| Total Debt | 2.08M | 2.73M | 1.74M | 1.38M | 1.87M | 0.00 |
| Total Liabilities | 11.27M | 13.18M | 12.22M | 9.51M | 15.08M | 2.09M |
| Stockholders Equity | 202.84M | 240.02M | 267.39M | 270.89M | 51.07M | 2.10M |
Cash Flow | ||||||
| Free Cash Flow | -19.64M | -20.62M | -12.70M | -14.80M | -16.26M | -16.32M |
| Operating Cash Flow | -23.83M | -15.97M | -11.67M | -14.28M | -16.24M | -15.63M |
| Investing Cash Flow | 12.01M | 1.58M | -155.88M | -71.93M | 1.01M | -686.93K |
| Financing Cash Flow | -223.65K | 0.00 | 8.00K | 219.16M | 76.71M | 14.89M |
Zomedica Technical Analysis
Positive
0.10
Price Trends
0.08
Positive
0.06
Positive
0.06
Positive
Market Momentum
<0.01
Negative
65.18
Neutral
87.65
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZOMDF, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.18 is Neutral, neither overbought nor oversold. The STOCH value of 87.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZOMDF.
Zomedica Risk Analysis
Zomedica disclosed 36 risk factors in its most recent earnings report. Zomedica reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zomedica Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | $70.08M | -1.20 | -73.73% | ― | 15.59% | 4.13% | |
47 Neutral | $75.36M | -0.88 | -50.95% | ― | 10.20% | -35.75% | |
41 Neutral | $289.67M | ― | -196.79% | ― | ― | 37.37% | |
40 Underperform | $71.01M | -0.86 | -51.87% | ― | ― | -58.47% | |
39 Underperform | $73.80M | ― | -103.22% | ― | -19.15% | 10.90% | |
38 Underperform | $98.14M | -7.99 | -54.87% | ― | -98.30% | 26.62% |
* Healthcare Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.