Education
About Us
Working with TipRanks
Follow Us
Zynex Inc (ZYXI)
:ZYXI
Top Page
Zynex
(NASDAQ:ZYXI)
54Neutral
Positive Factors
Financial Performance
The company reported a 4.4% year-over-year growth in total revenue for the full year 2024.
Market Entry
If cleared by the FDA, NiCO would allow Zynex to enter the multi-billion dollar pulse oximetry market with differentiating precision and accuracy.
Product Expansion
Zynex is set to expand its payor coverage, which could help mitigate some of the short-term sales decline.
Negative Factors
Competition
Risks include slower-than-anticipated revenue growth of pain management products due to competition.
Regulatory Risks
There is a potential risk of inability to secure regulatory clearance for other medical devices.
Revenue Decline
Zynex experienced a revenue decline in 4Q24 due to a temporary suspension of payments by a major payor, Tricare.
Zynex (ZYXI) vs. S&P 500 (SPY)
Market Cap
$71.80M
Dividend YieldN/A
Average Volume (3M)365.64K
Price to Earnings (P/E)24.2
Beta (1Y)1.54
Revenue Growth4.36%
EPS Growth-65.34%
CountryUS
Employees1,000
SectorHealthcare
Sector Strength71
IndustryMedical - Distribution
Share Statistics
EPS (TTM)0.09
Shares Outstanding31,912,487
10 Day Avg. Volume356,720
30 Day Avg. Volume365,638
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.41
Price to Cash Flow (P/CF)8.00
P/FCF Ratio7.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.25Price Target Upside355.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Zynex Business Overview & Revenue Model
Company DescriptionZynex, Inc. (ZYXI) is a medical technology company that specializes in the development, manufacturing, and sale of non-invasive medical devices for pain management, physical rehabilitation, neurological diagnosis, and cardiac monitoring. The company's products are primarily focused on electrotherapy and include devices like the NexWave, which provides pain relief and muscle rehabilitation through electrical stimulation. Zynex operates within the healthcare sector, targeting both the consumer and professional medical markets.
How the Company Makes MoneyZynex makes money through the sale and rental of its proprietary medical devices. The company generates revenue primarily from direct sales to healthcare providers, clinics, and patients, as well as through rentals of its devices. A significant portion of Zynex's revenue comes from insurance reimbursements for the use of its products, which are prescribed by healthcare professionals. The company also benefits from recurring revenue through consumable supplies and accessories related to its devices. Additionally, Zynex has established partnerships and distribution agreements to expand its reach within the medical device market, further contributing to its earnings.
Zynex Financial Statement Overview
Summary
Zynex demonstrates strong revenue generation and gross profit margins, but recent profitability pressures are evident in reduced net income and margins. The increased leverage raises financial risk, but solid cash flow ratios suggest effective cash management. While the company faces profitability challenges, its operational efficiency and revenue growth potential remain positive indicators for future performance.Income Statement
Zynex has shown a steady increase in revenue over the years, but the growth has slowed recently, with only a 4.36% increase from 2023 to 2024. Gross profit margins remain strong at 79.52% in 2024, indicating effective cost management. However, the net profit margin has decreased significantly, from 5.28% in 2023 to 1.56% in 2024, due to reduced net income. The EBIT margin also fell to 3.11%, reflecting challenges in operating profitability.65
Positive
Balance Sheet
The company's debt-to-equity ratio increased to 2.07 in 2024, indicating higher leverage and potential risk. Return on equity has dropped to 8.38%, suggesting diminished profitability relative to equity. The equity ratio is at 29.26%, pointing to a lower proportion of assets financed by equity, which might raise concerns about financial stability.60
Neutral
Cash Flow
Despite a lower operating cash flow in 2024, Zynex maintains a solid free cash flow to net income ratio of 4.06, indicating efficient cash generation relative to profits. The free cash flow growth is negative, reflecting a decline from 2023 levels, but the operating cash flow to net income ratio remains robust at 4.25, showing effective cash management overall.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 192.35M | 184.32M | 158.17M | 130.30M | 80.12M | Gross Profit |
| 152.93M | 145.96M | 126.16M | 102.98M | 62.70M | EBIT |
| 5.99M | 10.78M | 22.94M | 22.37M | 10.25M | EBITDA |
| 10.79M | 17.89M | 26.18M | 22.37M | 11.75M | Net Income Common Stockholders |
| 2.99M | 9.73M | 17.05M | 17.10M | 9.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 39.63M | 44.58M | 20.14M | 42.61M | 39.17M | Total Assets |
| 122.08M | 136.90M | 116.47M | 133.27M | 72.17M | Total Debt |
| 73.82M | 76.17M | 26.96M | 35.09M | 7.33M | Net Debt |
| 34.19M | 31.59M | 6.82M | -7.52M | -31.84M | Total Liabilities |
| 86.37M | 90.78M | 50.11M | 59.35M | 15.32M | Stockholders Equity |
| 35.71M | 46.13M | 66.36M | 73.92M | 56.85M |
| Cash Flow | Free Cash Flow | |||
| 12.14M | 16.55M | 13.33M | 6.34M | -167.00K | Operating Cash Flow |
| 12.72M | 17.76M | 13.75M | 6.95M | 818.00K | Investing Cash Flow |
| -578.00K | -966.00K | -418.00K | -16.61M | -985.00K | Financing Cash Flow |
| -17.09M | 7.64M | -35.80M | 13.10M | 25.30M |
Zynex Technical Analysis
Negative
2.25
Price Trends
6.36
Negative
7.28
Negative
7.87
Negative
Market Momentum
-1.31
Positive
13.11
Positive
6.26
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZYXI, the sentiment is Negative. The current price of 2.25 is below the 20-day moving average (MA) of 4.27, below the 50-day MA of 6.36, and below the 200-day MA of 7.87, indicating a bearish trend. The MACD of -1.31 indicates Positive momentum. The RSI at 13.11 is Positive, neither overbought nor oversold. The STOCH value of 6.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZYXI.
Zynex Risk Analysis
Zynex disclosed 48 risk factors in its most recent earnings report. Zynex reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zynex Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $199.72M | 30.91 | 16.11% | ― | 15.35% | 71.35% | |
76 Outperform | $18.17B | 44.70 | 43.03% | ― | 22.07% | 101.95% | |
60 Neutral | $11.66B | 28.31 | 11.26% | ― | 3.54% | -3.41% | |
54 Neutral | $71.80M | 24.19 | 7.32% | ― | 4.36% | -65.34% | |
52 Neutral | $739.95M | ― | -20.86% | ― | 11.89% | 79.18% | |
51 Neutral | $626.70M | ― | -22.87% | ― | 7.08% | 20.45% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 19.94% | 1.20% |
* Healthcare Sector Average
Performance Comparison
ZYXI
Zynex
2.25
-10.25
-82.00%
ALGN
Align Tech
159.21
-160.44
-50.19%
ELMD
Electromed
23.34
7.12
43.90%
PODD
Insulet
258.75
90.65
53.93%
OFIX
Orthofix
16.06
2.00
14.22%
BVS
Bioventus
9.03
3.81
72.99%
Zynex Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -67.86% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted growth in revenue per sales rep, positive trial results for the NiCO pulse oximeter, and significant cost savings. However, major challenges included the Tricare payment suspension impacting a substantial revenue portion, a reported net loss for Q4, and decreased device revenue. The lack of clear guidance for 2025 due to these uncertainties also weighed negatively.Highlights
Revenue Growth and Diversification
Revenue increased 4% in 2024, with order growth at 16%. There was also a 22% increase in revenue per sales rep, reaching $490,000 on average.
NiCO Pulse Oximeter Development
Positive results from human trials at Duke University and UCSF. FDA 510(k) submission anticipated soon, potentially allowing entry into a multi-billion dollar market.
Cost Savings
Cost restructuring initiatives expected to save approximately $35 million annually, with staff reductions of 15% primarily in corporate roles.
Strong Cash Position
End-of-year cash balance of $39.6 million, a 5% increase from Q3, with positive cash flows from operations for the year.
Lowlights
Tricare Payment Suspension
Tricare temporarily suspended payments pending a review of prior claims, impacting 20-25% of revenue. There's uncertainty about the resolution timeline, which could take up to 12 months.
Net Loss for Q4 2024
Reported a net loss of $615,000 or $0.02 per share, compared to a net income of $1.2 million in Q4 2023. Adjusted EBITDA decreased significantly to $584,000 from $9.9 million in the same period last year.
Decrease in Device Revenue
Device revenue decreased to $14.8 million from $16.3 million in Q4 2023, due to a product mix shift to lower-priced items.
Lack of 2025 Guidance
Due to uncertainty surrounding Tricare, the company is unable to provide full 2025 annual guidance.
Company Guidance
During the Zynex Fourth Quarter 2024 Earnings Conference Call, the company provided guidance marked by both optimism and caution. Zynex reported a 4% increase in revenue for 2024 and a 16% growth in orders, but faced challenges due to a temporary suspension of payments by Tricare, which accounts for 20% to 25% of their revenue. This has impacted their ability to provide full 2025 guidance. The company implemented a 15% staff reduction in the corporate office, resulting in annual savings of approximately $35 million, and adjusted its sales force, reducing the number of sales reps from 475 to 330 while increasing revenue per rep by 22% to $490,000. Zynex projects $30 million in revenue for Q1 2025, with an anticipated net loss between $9 million and $10 million. They are also on the brink of FDA submission for their NiCO pulse oximeter, aimed at entering a multi-billion dollar market, and remain focused on diversifying products and revenue streams.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.