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Apyx Medical (APYX)
:APYX
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Apyx Medical
(NASDAQ:APYX)
48Neutral
Positive Factors
Market Opportunity
Broader GLP-1 adoption could catalyze new demand for skin tightening treatments, positioning Apyx as one of the best companies to capitalize on this growing market.
Product Development
Apyx Medical announced it submitted a 510(k) for AYON, an all-in-one body contouring platform, ahead of schedule.
Negative Factors
Financial Challenges
Apyx remains unprofitable and faces near-term financing challenges that are expected to remain an overhang on shares.
Apyx Medical (APYX) vs. S&P 500 (SPY)
Market Cap
$40.09M
Dividend YieldN/A
Average Volume (3M)27.55K
Price to Earnings (P/E)―
Beta (1Y)1.79
Revenue Growth-3.49%
EPS Growth-87.49%
CountryUS
Employees256
SectorHealthcare
Sector Strength77
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-0.82
Shares Outstanding37,643,887
10 Day Avg. Volume47,591
30 Day Avg. Volume27,555
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.80
Price to Cash Flow (P/CF)-2.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering3
Apyx Medical Business Overview & Revenue Model
Company DescriptionApyx Medical (APYX) is a medical technology company that specializes in the development and commercialization of advanced energy-based surgical devices. The company primarily operates in the cosmetic and surgical sectors, offering innovative products that enhance procedural outcomes for patients. Its flagship product line, based on proprietary helium plasma technology, is designed to improve precision and safety in cosmetic procedures as well as general surgery applications.
How the Company Makes MoneyApyx Medical generates revenue primarily through the sale of its energy-based surgical products to healthcare providers, cosmetic surgeons, and hospitals. The company's revenue model is based on direct sales and distribution partnerships that facilitate the reach of its products to a broad range of clinical settings. Key revenue streams include the sale of its proprietary helium plasma devices and associated consumables necessary for surgical procedures. Partnerships with distributors and healthcare institutions play a significant role in expanding its market presence and driving sales growth.
Apyx Medical Financial Statement Overview
Summary
Apyx Medical faces financial challenges with moderate revenue growth but significant losses and high leverage. The negative net income, declining gross profit margins, and high debt-to-equity ratio indicate financial instability.Income Statement
Apyx Medical has experienced moderate revenue growth from $52.35M to $52.84M in the TTM (Trailing-Twelve-Months), but profitability remains a challenge. The company reported negative net income of $28.44M and declining gross profit margins, impacting overall performance. The EBIT and EBITDA margins are negative, highlighting ongoing operational inefficiencies.40
Negative
Balance Sheet
The balance sheet shows high leverage with a debt-to-equity ratio of 3.52, indicating potential financial risk. Stockholders' equity has decreased significantly, reducing the equity ratio to 18.19%. While cash reserves have been maintained, the overall financial stability is weakened due to increased liabilities.35
Negative
Cash Flow
Operating cash flow remains negative at -$15.57M, with free cash flow also declining. The company’s ability to generate cash from operations is limited, and the free cash flow to net income ratio is unfavorable. Despite a positive financing cash flow, this primarily reflects a reliance on external funding.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 52.84M | 52.35M | 44.51M | 48.52M | 27.71M | 28.15M | Gross Profit |
| 19.78M | 33.76M | 29.13M | 33.60M | 17.50M | 19.13M | EBIT |
| -21.57M | -17.26M | -23.56M | -14.45M | -20.08M | -20.91M | EBITDA |
| -22.84M | -18.11M | -22.01M | -13.91M | -18.48M | -19.07M | Net Income Common Stockholders |
| -28.44M | -18.71M | -23.28M | -15.20M | -11.91M | -19.65M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 78.14M | 43.65M | 10.19M | 30.87M | 41.91M | 58.81M | Total Assets |
| 95.61M | 79.24M | 51.77M | 68.72M | 74.11M | 84.68M | Total Debt |
| 140.00K | 38.50M | 796.00K | 305.00K | 676.00K | 1.13M | Net Debt |
| -16.33M | -5.15M | -9.40M | -30.57M | -41.24M | -57.68M | Total Liabilities |
| 7.84M | 52.32M | 13.98M | 14.71M | 10.25M | 13.42M | Stockholders Equity |
| 87.77M | 26.70M | 37.58M | 53.70M | 63.72M | 71.26M |
| Cash Flow | Free Cash Flow | ||||
| -16.14M | -5.78M | -21.29M | -11.17M | -16.65M | -19.78M | Operating Cash Flow |
| -15.57M | -5.25M | -20.28M | -10.45M | -16.07M | -18.48M | Investing Cash Flow |
| -570.00K | 6.73M | -1.01M | -723.00K | -581.00K | 60.54M | Financing Cash Flow |
| 22.07M | 32.17M | 217.00K | 24.00K | -73.00K | 147.00K |
Apyx Medical Technical Analysis
Negative
1.06
Price Trends
1.46
Negative
1.43
Negative
1.38
Negative
Market Momentum
-0.08
Positive
31.00
Neutral
15.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APYX, the sentiment is Negative. The current price of 1.06 is below the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.46, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 31.00 is Neutral, neither overbought nor oversold. The STOCH value of 15.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APYX.
Apyx Medical Risk Analysis
Apyx Medical disclosed 28 risk factors in its most recent earnings report. Apyx Medical 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
Apyx Medical Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $8.93B | 116.65 | -25.23% | ― | 2.26% | -467.23% | |
63 Neutral | $533.86M | 68.70 | 4.60% | 0.86% | 19.84% | -22.84% | |
55 Neutral | $1.17B | ― | -6.14% | ― | -20.89% | 83.44% | |
51 Neutral | $19.46M | ― | -150.28% | ― | -11.31% | -40.04% | |
49 Neutral | $7.00B | >-0.01 | -53.72% | 2.41% | 24.70% | -2.97% | |
48 Neutral | $40.09M | ― | -128.15% | ― | -3.49% | -87.49% | |
36 Underperform | $2.59M | ― | 52.08% | ― | -32.57% | -15.03% |
* Healthcare Sector Average
Performance Comparison
APYX
Apyx Medical
1.06
-0.66
-38.37%
CUTR
Cutera
0.11
-1.91
-94.55%
IRIX
Iridex
1.23
-1.35
-52.33%
MASI
Masimo
166.52
37.45
29.02%
SLP
Simulations Plus
26.57
-15.57
-36.95%
BLFS
BioLife Solutions
26.62
9.97
59.88%
Apyx Medical Earnings Call Summary
Earnings Call Date: Nov 8, 2024 | % Change Since: -13.11% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic initiatives such as the development of the Ayon platform and restructuring efforts to streamline operations and extend financial runway. Despite these positive steps and growth in disposable and OEM segments, the company faced challenges with declining revenue and sales in their Advanced Energy segment, attributed to macroeconomic factors. The sentiment is mixed as the company is taking proactive measures but currently faces significant market challenges.Highlights
Introduction of Ayon Platform
Apyx Medical is developing the Ayon body contouring system, which integrates multiple functions into a single device. A 510(k) submission is planned for Q1 2025, with an expected launch in the second half of 2025.
Increase in Disposable Handpiece Revenue
Despite challenges, disposable handpiece revenue grew 9% overall and 15% in the U.S. Disposable revenue now accounts for more than 60% of total Advanced Energy revenue.
OEM Segment Growth
OEM segment sales increased by 3% in Q3 2024 compared to the same period in 2023.
Strategic Restructuring
Apyx Medical has restructured its organization, reducing its U.S. workforce by nearly 25% to extend operational runway into 2027.
Direct Investment and Covenant Amendments
Closed a $7 million investment from Nantahala Capital Management and amended revenue covenants with Perceptive Advisors.
Lowlights
Decrease in Total Revenue
Total revenue for Q3 2024 decreased by 4% to $11.5 million compared to $12 million in the same period in 2023.
Decline in Advanced Energy Product Sales
Sales of Advanced Energy products decreased by 6% year-over-year to $9.3 million, largely due to lower generator capital sales and macroeconomic pressures.
Net Loss and Decrease in Gross Profit
Net loss attributable to shareholders was $4.7 million, with gross profit decreasing by 13% to $7 million.
Impact of GLP-1 Drugs on Market
The emergence of GLP-1 drugs has led to a decrease in procedural volumes, negatively impacting capital equipment sales.
Company Guidance
During the Apyx Medical Q3 2024 earnings call, the company provided guidance metrics reflecting strategic restructuring and financial projections. Apyx announced an organizational restructuring, reducing its U.S. workforce by nearly 25%, which is expected to save approximately $4.3 million annually and extend its financial runway into 2027. For 2024, Apyx revised its total revenue guidance to a range of $46.6 million to $47.6 million, a 9% to 11% decrease from the prior year, with Advanced Energy revenue projected between $37.2 million and $38.2 million. OEM revenue is anticipated to be around $9.4 million. Looking forward to 2025, the company introduced revenue guidance of $47.6 million to $49.5 million, reflecting 2% to 6% growth, driven by expected Advanced Energy revenue of $39.1 million to $41 million and a decrease in OEM revenue to $8.5 million. The company aims to manage operating expenses below $40 million, focusing on the introduction of its Ayon body contouring system and continued growth in disposable handpiece sales.Apyx Medical Corporate Events
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Apyx Medical’s Strategic Moves for Financial Stability
Positive
Nov 8, 2024
Apyx Medical Corporation recently strengthened its financial position by raising $7 million through a direct stock offering and amending its credit agreement with Perceptive Credit Holdings. These changes, coupled with a cost-saving restructuring program, aim to optimize operations, including a 25% workforce reduction in the U.S. Despite a 4% decrease in total revenue, Apyx is optimistic about future growth, particularly in its disposable handpiece sales and upcoming Ayon body contouring system. The company anticipates significant cost savings and is set to introduce new innovations in the aesthetic surgical space.
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.