Zynex (ZYXI) AI Stock Analysis

• Market Cap: $68.64M
• Dividend Yield: N/A
• Average Volume (3M): 210.80K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.22
• Revenue Growth: -8.63%
• EPS Growth: -202.31%
• Country: US
• Employees: 1,000
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Distribution
• EPS (TTM): -0.33
• Shares Outstanding: 30,238,876
• 10 Day Avg. Volume: 135,350
• 30 Day Avg. Volume: 210,799
• PEG Ratio: 0.03
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -153.58
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.88
• Enterprise Value/Ebitda: 3.50
• 1Y Price Target: $5.50
• Price Target Upside: 134.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 39 Underperform
• Price Target: $2.00 ▼(-14.89%Downside)

Zynex's overall stock score is primarily impacted by severe financial difficulties, reflected in poor financial performance and valuation metrics. The technical analysis indicates bearish momentum, while recent earnings call and corporate events highlight both strategic challenges and potential for future recovery. Immediate focus on revenue growth and cost control is crucial.

Positive Factors

Leadership

Steven Dyson, with over 25 years of experience in the medical technology sector, has been appointed as CEO to refocus Zynex's business strategy and return it to a strong growth trajectory.

Product Development

Zynex has submitted a 510(k) application to the FDA for its NiCO pulse oximeter, which uses precise laser technology for more accurate oxygenation measurement, potentially opening access to a $2.8 billion market.

Negative Factors

Financial Performance

Total revenue was $26.6M, representing a 43% year-over-year decline and missing the projection of $31.5M.

Regulatory Risks

Risks include slower-than-anticipated revenue growth due to competition and inability to secure regulatory clearance for other medical devices.

Zynex Business Overview & Revenue Model

Company Description

Zynex, Inc., through its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography triggered electrical stimulation device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; and E-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and knee braces for knee support. Further, it offers Zynex Fluid Monitoring System (CM-1500), a fluid volume monitor, which is a non-invasive medical device for monitoring relative fluid volume changes used in operating and recovery rooms to detect fluid loss during surgery and internal bleeding during recovery; Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.

How the Company Makes Money

Zynex generates revenue primarily through the sale and rental of its medical devices, particularly in the area of pain management and rehabilitation. The company's key revenue streams include direct sales of its electrotherapy devices to healthcare facilities and patients, as well as rental agreements where devices are provided to patients for a recurring fee. Additionally, Zynex may benefit from insurance reimbursements for its devices, which can significantly impact its revenue. The company also engages in direct distribution and partnerships with healthcare providers to expand its market reach and enhance its sales channels.

Zynex Financial Statement Overview

Summary

Zynex's financial performance is under significant strain, with declining revenue, negative profitability margins, high leverage, and poor cash flow. The income statement, balance sheet, and cash flow scores are all critically low, indicating severe financial challenges. Strategic initiatives are necessary to stabilize the company's financial position.

Income Statement

Zynex's income statement shows a troubling trajectory with declining revenue and net income in the TTM period. Gross Profit Margin remains relatively strong at 77.7% TTM, but significant drops in EBIT and EBITDA margins to negative values signal operational challenges. The revenue growth rate has been negative in the most recent period, indicating potential demand issues. Continued focus on cost management and revenue recovery is essential.

Balance Sheet

The balance sheet highlights a high debt-to-equity ratio of 3.52, indicating substantial leverage and potential financial risk. Equity ratio is low at 19.6%, reflecting high reliance on debt financing. Return on Equity has turned negative, further highlighting financial stress. Improvement in financial structure is needed to enhance stability.

Cash Flow

Cash flow analysis reveals a concerning negative free cash flow in the TTM period, coupled with a significant decrease in operating cash flow. The free cash flow to net income ratio is unfavorable, indicating cash generation issues. Enhanced cash management and operational efficiency are critical to reversing this trend.

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
EBITDA	10.79M	17.89M	26.18M	22.37M	11.75M
Net Income	2.99M	9.73M	17.05M	17.10M	9.07M
Balance Sheet
Total Assets	122.08M	136.90M	116.47M	133.27M	72.17M
Cash, Cash Equivalents and Short-Term Investments	39.63M	44.58M	20.14M	42.61M	39.17M
Total Debt	73.82M	76.17M	26.96M	35.09M	7.33M
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

• Technical Analysis Sentiment: Neutral
• Last Price: 2.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZYXI, the sentiment is Neutral. The current price of 2.35 is below the 20-day moving average (MA) of 2.43, above the 50-day MA of 2.31, and below the 200-day MA of 5.52, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 41.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZYXI.

Zynex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSIC	73 Outperform	$8.44B	21.60	11.78%	―	1.75%	8.76%
PDCO	70 Outperform	$2.77B	20.21	14.15%	2.49%	-0.85%	-23.40%
PBH	69 Neutral	$3.70B	17.53	12.30%	―	1.10%	2.65%
OMI	50 Neutral	$607.55M	―	-49.91%	―	2.84%	-828.91%
GRDN	47 Neutral	$1.35B	―		―	―	―
Sector *	46 Neutral	C$197.02M	-3.33	-23.14%	2.65%	20.75%	-0.36%
ZYXI	39 Underperform	$68.64M	24.14	-27.52%	―	-8.63%	-202.31%

Zynex Corporate Events

Zynex Faces Continued Payment Suspension from Tricare

On July 2, 2025, Zynex, Inc. announced that Tricare, its largest insurance customer, will continue the temporary suspension of payments. Despite Zynex’s appeal and presentation of evidence to lift the suspension, Tricare has decided to maintain the suspension while conducting further review, impacting Zynex’s operations and financial stability.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.

Zynex Appoints Steven Dyson as New CEO

Zynex, Inc. announced the appointment of Steven Dyson as Chief Executive Officer, effective August 18, 2025, succeeding Thomas Sandgaard who will continue as Chairman of the Board. Dyson, with over 25 years of experience in healthcare investment and medical technology, aims to lead Zynex towards a stronger growth trajectory, leveraging his extensive background in the sector.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.

Zynex Announces Workforce Reduction for Cost Savings

On June 18, 2025, Zynex, Inc. executed a workforce reduction affecting 86 corporate roles, representing 14% of its total employees, aiming for $5 million in annualized cost savings. The reduction is part of a strategic adjustment in order processing and billing, unrelated to the temporary suspension of payments by Tricare, for which the company has appealed but not yet received a response.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.

Zynex Elects New Directors at Annual Meeting

On May 15, 2025, Zynex, Inc. held its Annual Meeting of Stockholders in Englewood, Colorado, where key decisions were made regarding the company’s leadership and financial oversight. Thomas Sandgaard, Barry D. Michaels, Michael Cress, and Joshua R. Disbrow were elected as directors, and the appointment of CBIZ CPAs P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified, indicating a stable governance structure for the company moving forward.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.

Zynex Submits 510(k) for NiCO™ CO-Oximeter

On May 12, 2025, Zynex, Inc. announced the submission of a 510(k) application to the FDA for its NiCO™ Noninvasive CO-Oximeter device, marking a significant milestone in pulse oximetry technology. This device addresses the inaccuracies of traditional pulse oximeters, particularly in patients with darker skin, by using laser technology to provide more accurate oxygen and carbon monoxide measurements. This advancement is expected to revolutionize patient monitoring and improve clinical outcomes by providing reliable data for early detection of hypoxia and hyperoxia, thus enhancing patient care and reducing costs.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.