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Zomedica (ZOMDF)
OTHER OTC:ZOMDF
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Zomedica
(OTC:ZOMDF)
Rating:47Neutral
Price Target:―
Positive Factors
Financial Performance
Financial results show continued growth in an expanding market, meeting growth expectations both sequentially and in year-over-year comparisons.
Product Innovation
Zomedica has introduced several new assays for use with its TRUFORMA diagnostics platform, allowing veterinary practices to run tests without sending samples to an outside lab.
Sales Growth
The TRUFORMA assays have been one of the sources of sales growth over the past year.
Negative Factors
Price Weakness
Although Zomedica has made fundamental progress, the price weakness led to delisting and further price weakness.
Stock Price and Delisting
The closing price of Zomedica stock fell below $0.10 per share, forcing the delisting of ZOM shares.
Zomedica (ZOMDF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$43.61M
Dividend YieldN/A
Average Volume (3M)1.47M
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth11.33%
EPS Growth-317.76%
CountryUS
Employees144
SectorHealthcare
Sector Strength42
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-0.07
Shares Outstanding979,949,650
10 Day Avg. Volume887,291
30 Day Avg. Volume1,465,671
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)0.47
Price to Sales (P/S)0.00
P/FCF Ratio-4.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$0.25Price Target Upside525.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Zomedica Business Overview & Revenue Model
Company DescriptionZomedica Pharmaceuticals Corp. operates as a development stage veterinary diagnostic and pharmaceutical company. It creates products for companion animals by focusing on the unmet needs of clinical veterinarians. The company was founded by Gerald L. Solensky, Jr. on January 7, 2013 and is headquartered in Ann Arbor, MI.
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:May 15, 2025
(Q4-2024)
| % Change Since: -33.33%|
Next Earnings Date:Aug 18, 2025
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 | EBIT |
| -38.26M | -31.59M | -21.92M | -21.37M | -16.76M | -19.78M | EBITDA |
| -54.27M | -29.39M | -15.34M | -19.57M | -16.38M | -19.00M | Net Income Common Stockholders |
| -62.19M | -34.53M | -17.02M | -18.38M | -16.92M | -19.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 90.50M | 90.50M | 115.09M | 194.95M | 61.99M | 510.59K | Total Assets |
| 253.20M | 253.20M | 279.61M | 280.40M | 66.14M | 4.18M | Total Debt |
| 2.73M | 2.73M | 1.74M | 1.38M | 1.87M | 0.00 | Net Debt |
| -10.22M | -10.22M | -25.66M | -193.57M | -60.12M | -510.59K | Total Liabilities |
| 13.18M | 13.18M | 12.22M | 9.51M | 15.08M | 2.09M | Stockholders Equity |
| 240.02M | 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
Negative
0.04
Price Trends
0.05
Negative
0.07
Negative
0.10
Negative
Market Momentum
>-0.01
Positive
37.33
Neutral
-7.14
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZOMDF, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.33 is Neutral, neither overbought nor oversold. The STOCH value of -7.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 2 New Risks
1.
Our Stock Appreciation Rights (SARs) liability may create volatility in our financial results, which could adversely affect investor confidence and our stock price. Q4, 2024
2.
We may be required to make significant cash payments under our agreement with Brisby, which could impact our liquidity and require us to secure additional financing. Q4, 2024
Zomedica Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
54 Neutral | $59.31M | ― | 45.59% | ― | 34.04% | 55.34% | |
54 Neutral | $5.31B | 3.29 | -45.39% | 2.79% | 16.77% | -0.07% | |
51 Neutral | $48.67M | ― | -546.55% | ― | 127.51% | 56.94% | |
51 Neutral | $59.44M | ― | 138.92% | ― | 64.15% | 41.65% | |
47 Neutral | $43.61M | ― | -55.79% | ― | 11.33% | -317.76% | |
38 Underperform | $13.47M | ― | -1949.77% | ― | -89.76% | 80.28% | |
36 Underperform | $39.19M | ― | -62.41% | ― | ― | 10.84% |
* Healthcare Sector Average
Performance Comparison
ZOMDF
Zomedica
0.04
-0.11
-73.33%
CYCC
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0.37
-29.71
-98.77%
BLUE
Bluebird Bio
4.97
-13.68
-73.35%
VNRX
VolitionRX
0.55
-0.12
-17.91%
SER
Serina Therapeutics
5.95
-3.66
-38.09%
ACRV
Acrivon Therapeutics, Inc.
1.35
-6.21
-82.14%
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.