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Myomo Inc (MYO)
:MYO
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Myomo
(NYSE MKT:MYO)
56Neutral
Positive Factors
Earnings
Myomo reported record total revenues of $12.1M for the quarter, up 154% YoY and beating consensus estimate of $9.9M.
Financial Performance
The company achieved positive free cash flow of $2.5M in the quarter, another record for the company.
Growth Strategy
The company plans to double its advertising spend to $6M in 2025, which is expected to contribute significantly to new direct-to-patient sales.
Negative Factors
Risks and Challenges
There are risks related to commercial, clinical, financial, regulatory, and intellectual property challenges.
Spending
The company plans to double its advertising spend to $6M in 2025, which could strain resources if results do not meet expectations.
Myomo (MYO) vs. S&P 500 (SPY)
Market Cap
$184.28M
Dividend YieldN/A
Average Volume (3M)520.94K
Price to Earnings (P/E)―
Beta (1Y)2.41
Revenue Growth69.17%
EPS Growth39.01%
CountryUS
Employees184
SectorHealthcare
Sector Strength66
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.17
Shares Outstanding34,381,126
10 Day Avg. Volume974,958
30 Day Avg. Volume520,936
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.68
Price to Cash Flow (P/CF)13.70
P/FCF Ratio18.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.81Price Target Upside73.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Myomo Business Overview & Revenue Model
Company DescriptionMyomo, Inc., a wearable medical robotics company, designs, develops, and produces myoelectric orthotics for people with neuromuscular disorders in the United States. The company offers MyoPro, a myoelectric-controlled upper limb brace or orthosis product used for supporting a patient's weak or paralyzed arm to enable and improve functional activities of daily living. Its products are designed to help improve function in adults and adolescents with neuromuscular conditions due to brachial plexus injury, stroke, traumatic brain injury, spinal cord injury, and other neurological disorders. The company sells its products to orthotics and prosthetics providers, the Veterans Health Administration, and rehabilitation hospitals, as well as through distributors. Myomo, Inc. was incorporated in 2004 and is headquartered in Boston, Massachusetts.
How the Company Makes MoneyMyomo generates revenue primarily through the sale and rental of its MyoPro devices. The company's revenue model includes direct sales to private individuals, healthcare institutions, and through partnerships with orthotics and prosthetics providers. Additionally, Myomo engages in reimbursement agreements with insurance companies and government healthcare programs to facilitate the coverage of its devices for patients. The company's earnings are significantly supported by its strategic collaborations with rehabilitation centers and distribution partners, which help expand its market reach and ensure accessibility of its products to a broader patient base.
Myomo Financial Statement Overview
Summary
Myomo shows strong revenue growth, crucial for its industry. However, lack of profitability and negative cash flows are significant challenges. Its balance sheet indicates a conservative structure, which provides some stability.Income Statement
The company has shown significant revenue growth over the years, with the most recent year showing a substantial increase in total revenue. However, profitability remains a concern as net income has been consistently negative, and EBIT and EBITDA margins are not available due to zero figures. The gross profit margin is relatively strong, indicating efficient cost management relative to revenue.45
Neutral
Balance Sheet
The company's debt-to-equity ratio is low, indicating conservative leverage, which is a positive aspect. Stockholders' equity has grown significantly, and the equity ratio is stable, suggesting a solid capital structure. However, continuous net losses could pose a risk to future equity stability.60
Neutral
Cash Flow
Operating cash flow has been negative, reflecting challenges in generating cash from core operations. However, the company has managed to maintain liquidity through financing activities. The absence of positive free cash flow growth is a concern, but the negative free cash flow is improving.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 32.55M | 19.24M | 15.56M | 13.86M | 7.58M | Gross Profit |
| 23.19M | 13.18M | 10.25M | 10.31M | 4.98M | EBIT |
| 0.00 | -8.23M | -10.67M | -10.27M | -10.50M | EBITDA |
| 0.00 | -7.71M | -10.13M | -9.93M | -11.24M | Net Income Common Stockholders |
| 0.00 | -8.15M | -10.72M | -10.37M | -12.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 24.87M | 8.87M | 5.35M | 15.52M | 12.24M | Total Assets |
| 42.24M | 14.58M | 10.16M | 20.10M | 14.71M | Total Debt |
| 8.11M | 601.30K | 553.91K | 735.00K | 173.44K | Net Debt |
| -16.27M | -6.27M | -4.79M | -14.79M | -12.07M | Total Liabilities |
| 17.53M | 5.59M | 3.80M | 4.69M | 3.14M | Stockholders Equity |
| 24.71M | 8.99M | 6.36M | 15.41M | 11.57M |
| Cash Flow | Free Cash Flow | |||
| -3.29M | -6.32M | -10.35M | -9.87M | -9.08M | Operating Cash Flow |
| -3.29M | -6.17M | -10.23M | -9.55M | -9.03M | Investing Cash Flow |
| 259.98K | -2.03M | -310.79K | -326.46K | -45.75K | Financing Cash Flow |
| 20.93M | 9.71M | 376.86K | 13.17M | 16.78M |
Myomo Technical Analysis
Negative
5.08
Price Trends
5.62
Negative
5.58
Negative
4.77
Positive
Market Momentum
-0.06
Negative
45.54
Neutral
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYO, the sentiment is Negative. The current price of 5.08 is below the 20-day moving average (MA) of 5.09, below the 50-day MA of 5.62, and above the 200-day MA of 4.77, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MYO.
Myomo Risk Analysis
Myomo disclosed 50 risk factors in its most recent earnings report. Myomo 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
Myomo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.38B | 70.08 | 19.39% | ― | 82.74% | ― | |
56 Neutral | $184.28M | ― | -36.69% | ― | 69.17% | 39.01% | |
55 Neutral | $9.17M | ― | -42.78% | ― | -41.41% | 23.95% | |
52 Neutral | $772.73M | ― | -20.86% | ― | 11.89% | 79.18% | |
49 Neutral | $6.88B | 0.82 | -52.97% | 2.48% | 20.92% | 1.17% | |
48 Neutral | $11.22M | ― | -89.52% | ― | -1.94% | 48.27% | |
43 Neutral | $486.93M | ― | -166.29% | ― | 0.37% | -20.49% |
* Healthcare Sector Average
Performance Comparison
MYO
Myomo
5.08
1.58
45.14%
NURO
Neurometrix
4.42
0.26
6.25%
EKSO
EKSO BIONICS
0.45
-0.97
-68.31%
SENS
Senseonics Holdings
0.72
0.16
28.57%
TMDX
TransMedics Group
70.32
-3.80
-5.13%
BVS
Bioventus
9.12
3.96
76.74%
Myomo Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: 21.82% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong positive sentiment overall, with significant revenue growth, successful expansion into new markets, and improved financial metrics. However, challenges with Medicare Advantage and increased operating expenses are noted as areas of concern.Highlights
Record-Breaking Revenue and Growth
Revenues were $12.1 million for Q4 and $32.6 million for the full year, more than double the quarterly revenue in Q4 '23, and 69% higher revenue than the previous year.
Increased Market Access
Medicare began paying for the MyoPro powered arm brace for medically-qualified patients, allowing access to roughly 50% of the market previously turned away.
Strong Pipeline and Orders
Added 657 medically-qualified candidates to the patient pipeline, ending the year with nearly 1,400 patients in the process of obtaining MyoPro.
Improved Operating Efficiency
Achieved positive adjusted EBITDA for the first time in history, with a significant improvement compared to the previous year.
Successful Capital Raise and Expansion
Completed a successful capital raise to fund growth plans in 2025 and beyond, and increased manufacturing capacity to 120 units per month.
Lowlights
Challenges with Medicare Advantage
Continued challenges with first-time authorizations and denials from Medicare Advantage, requiring escalation to administrative law judge hearings.
Reimbursement Delays
The situation with Medicare Advantage and other commercial payers has not improved over the last three to six months, affecting revenue cycles.
Higher Operating Expenses
Total operating expenses for Q4 were $8.9 million, up 60% over the previous year, driven by higher headcount, R&D expenses, and incentive compensation.
Company Guidance
During the Myomo Fourth Quarter 2024 Earnings Conference Call, CEO Paul Gudonis highlighted the company's significant achievements and outlined guidance for 2025. Myomo reported record revenues of $12.1 million in Q4 and $32.6 million for the full year, marking a 154% increase from the previous year. The company delivered 220 revenue units in Q4 and more than 600 devices throughout the year, with Medicare Part B patients contributing to 57% of Q4 revenue. Myomo's strategic focus includes expanding market access through orthotics and prosthetics (O&P) clinics, which saw a 94% revenue increase in Q4. The company also achieved a gross margin of 71.4% and positive operating cash flow in Q4. Moving forward, Myomo aims to double its advertising budget to over $6 million, hire additional staff, and achieve revenues between $50 million and $53 million in 2025, with an emphasis on second-half growth. The company is also working to increase O&P-driven revenue and expand its international presence, particularly in Germany.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.