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InspireMD (NSPR)
NASDAQ:NSPR
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InspireMD
(NASDAQ:NSPR)
60Neutral
Positive Factors
Acquisition Prospects
InspireMD could be an attractive add-on for Boston Scientific or other big MedTech cardiovascular players, including Medtronic, Abbott, or J&J.
FDA Approval
InspireMD is approaching its most important catalyst, FDA approval of its CGuard carotid artery stent.
Market Potential
InspireMD can quickly build a $50M CGuard business and a $25M SwitchGuard business by 2028.
Negative Factors
InspireMD (NSPR) vs. S&P 500 (SPY)
Market Cap
$73.56M
Dividend YieldN/A
Average Volume (3M)65.60K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth24.70%
EPS Growth45.05%
CountryUS
Employees65
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-0.84
Shares Outstanding26,083,763
10 Day Avg. Volume79,606
30 Day Avg. Volume65,599
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)10.86
Price to Cash Flow (P/CF)-3.30
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 Target
$5.00Price Target Upside79.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
InspireMD Business Overview & Revenue Model
Company DescriptionInspireMD, Inc. (NSPR) is a medical device company focused on the development and commercialization of proprietary MicroNet stent platform technology for the treatment of complex vascular and coronary disease. Operating within the healthcare and medical device sectors, the company's core product, CGuard Embolic Prevention System (EPS), is designed to prevent embolic events in patients undergoing carotid artery procedures. InspireMD aims to enhance patient care by improving the performance of existing stenting procedures.
How the Company Makes MoneyInspireMD generates revenue primarily through the sale of its CGuard EPS and other related products to hospitals and healthcare providers. The company markets its products through direct sales as well as through a network of distributors and partners in various regions. Revenue is driven by the adoption and utilization of its proprietary MicroNet technology in medical procedures. Additionally, InspireMD may engage in strategic partnerships to expand its market presence and enhance its distribution capabilities, contributing to its overall earnings.
InspireMD Financial Statement Overview
Summary
InspireMD shows robust revenue growth, but it faces ongoing net losses and negative cash flow from operations. The company has a strong equity base with low leverage, providing financial stability, yet challenges in profitability and cash flow remain.Income Statement
InspireMD's revenue has shown a positive growth trajectory in recent years, with a notable increase from $5.17 million in 2022 to $6.82 million in TTM 2024, representing a significant year-over-year growth rate. However, the company continues to operate at a net loss, with a negative net profit margin and EBIT margin. The gross profit margin is relatively low, reflecting challenges in cost management and achieving economies of scale.60
Neutral
Balance Sheet
The company's balance sheet shows a strong equity position, with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting conservative leverage levels. Return on equity remains negative due to the net losses, but the company’s ample cash reserves provide a cushion against potential financial risks.70
Positive
Cash Flow
InspireMD's cash flow from operations remains negative, indicating ongoing challenges in generating sufficient cash from core activities. Free cash flow is also negative, though there is a positive trend in financing cash flow, suggesting reliance on external funding. The free cash flow to net income ratio is not ideal, reflecting cash flow constraints.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.82M | 6.21M | 5.17M | 4.50M | 2.48M | 3.72M | Gross Profit |
| 1.54M | 1.81M | 1.12M | 754.00K | 83.00K | 756.00K | EBIT |
| -29.94M | -21.14M | -18.71M | -14.72M | -10.38M | -9.82M | EBITDA |
| -29.68M | -20.91M | -18.52M | -14.55M | -10.39M | -9.86M | Net Income Common Stockholders |
| -28.24M | -19.92M | -18.49M | -14.92M | -10.54M | -10.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 9.38M | 39.02M | 17.80M | 34.04M | 12.64M | 5.51M | Total Assets |
| 12.29M | 47.64M | 24.65M | 39.71M | 17.78M | 9.88M | Total Debt |
| 0.00 | 1.59M | 1.61M | 1.20M | 999.00K | 653.00K | Net Debt |
| -9.38M | -8.04M | -3.02M | -10.80M | -11.65M | -4.86M | Total Liabilities |
| 3.52M | 8.14M | 7.26M | 6.18M | 5.61M | 4.50M | Stockholders Equity |
| 8.76M | 39.50M | 17.39M | 33.53M | 12.16M | 5.38M |
| Cash Flow | Free Cash Flow | ||||
| -20.60M | -16.76M | -16.02M | -13.55M | -9.17M | -10.09M | Operating Cash Flow |
| -19.29M | -16.38M | -15.54M | -13.21M | -9.08M | -9.81M | Investing Cash Flow |
| 4.36M | -16.09M | 8.44M | -22.46M | -187.00K | -387.00K | Financing Cash Flow |
| 16.89M | 37.53M | -140.00K | 35.03M | 16.39M | 6.33M |
InspireMD Technical Analysis
Negative
2.79
Price Trends
2.84
Negative
2.77
Positive
2.73
Positive
Market Momentum
<0.01
Positive
43.80
Neutral
13.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NSPR, the sentiment is Negative. The current price of 2.79 is below the 20-day moving average (MA) of 3.04, below the 50-day MA of 2.84, and above the 200-day MA of 2.73, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.80 is Neutral, neither overbought nor oversold. The STOCH value of 13.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NSPR.
InspireMD Risk Analysis
InspireMD disclosed 25 risk factors in its most recent earnings report. InspireMD 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
InspireMD Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $73.56M | ― | -66.75% | ― | 24.70% | 45.05% | |
56 Neutral | $1.21B | ― | -33.30% | ― | 25.74% | 57.18% | |
55 Neutral | $761.38M | ― | -9.99% | ― | 17.81% | 54.69% | |
52 Neutral | $969.24M | 55.81 | -5.16% | ― | -2.64% | -193.31% | |
51 Neutral | $245.90M | ― | -43.31% | ― | 0.52% | -295.83% | |
51 Neutral | $19.46M | ― | -150.28% | ― | -11.31% | -40.04% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
NSPR
InspireMD
2.79
0.33
13.41%
ANIK
Anika Therapeutics
16.79
-9.00
-34.90%
IRIX
Iridex
1.23
-1.35
-52.33%
STAA
Staar Surgical
18.34
-19.30
-51.28%
TNDM
Tandem Diabetes Care
17.89
-12.02
-40.19%
AXGN
AxoGen
17.42
9.19
111.66%
InspireMD Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: 13.41% | Next Earnings Date: Mar 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and promising prospects for U.S. market entry, supported by a robust pipeline and strategic initiatives. However, challenges included decreased gross profit, increased operating expenses, and a higher net loss, indicating mixed financial performance.Highlights
Strong Revenue Growth
Total CGuard revenue of $1.81 million, representing growth of more than 16% over the third quarter of last year. Sales of over 3,100 CGuard implants during the quarter, representing growth of nearly 14% over the same period last year.
U.S. Market Entry Prospects
Submission of PMA to the FDA for CGuard Prime, with a decision anticipated in early 2025. Potential U.S. market launch could generate significant revenue growth.
Pipeline Development and Strategic Initiatives
Approval of investigational device exemption by the FDA for CGuardians 2 pivotal study. Strategic agreement with the Jacobs Institute for an early feasibility study of CGuard Prime.
Financial Position
Cash, cash equivalents, and marketable securities were $40.4 million as of September 30, 2024, compared to $39 million as of December 31, 2023.
New Headquarters Facility
Seamless transition to new headquarters in Miami, Florida to support anticipated U.S. launch and commercialization.
Lowlights
Decreased Gross Profit
Gross profit decreased by $24,000 or 5.6%, to $414,000 from $438,000 during the same period last year. Gross margin decreased to 22.9% from 28.1%.
Increased Operating Expenses
Total operating expenses for the third quarter of 2024 were $8.9 million, an increase of $2.8 million or 46.1% compared to $6.1 million for the third quarter of 2023.
Net Loss Increase
Net loss for the third quarter of 2024 totaled $7.9 million compared to a net loss of $5.2 million for the same period in 2023.
Company Guidance
During the InspireMD Q3 2024 earnings call, CEO Marvin Slosman reported significant growth, with CGuard revenue reaching $1.81 million, a 16.3% increase compared to the previous year, and sales of over 3,100 implants, marking a 14% rise. The company's stent technology now holds a double-digit market share in 30 countries, with more than 60,000 implants sold to date. The anticipated U.S. approval of CGuard Prime in the first half of 2025 could potentially translate international sales into over $14 million in U.S. revenue. The company has submitted a PMA to the FDA and expects a decision by early 2025. Financially, InspireMD saw an increase in operating expenses to $8.9 million, a 46.1% rise over the prior year, and reported a net loss of $7.9 million for the quarter. Cash, cash equivalents, and marketable securities stood at $40.4 million as of September 30, 2024.InspireMD Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
InspireMD CFO Retirement Amid Strategic Transition
Neutral
Dec 12, 2024
InspireMD announced the upcoming retirement of its Chief Financial Officer, Craig Shore, after a successor is appointed. Shore, who has contributed significantly to the company’s growth over 15 years, will aid in the transition process. This leadership change comes as the company is poised for potential FDA approval in 2025 and is intensifying its focus on the investment community. InspireMD has initiated a search for a new CFO to continue its trajectory as a global leader in carotid interventions.
Product-Related AnnouncementsBusiness Operations and Strategy
InspireMD Advances CGuard Prime with New Clinical Trial
Positive
Dec 9, 2024
InspireMD, Inc. has enrolled its first patient in the CGUARDIANS II clinical trial, a significant milestone for its CGuard Prime Carotid Stent System used in Transcarotid Artery Revascularization. This study aims to expand the application of this innovative stenting platform, offering improved protection against strokes with a potential FDA approval on the horizon, addressing a growing U.S. market of 30,000 procedures annually.
Executive/Board ChangesBusiness Operations and Strategy
InspireMD Strengthens Leadership with Scott R. Ward Appointment
Positive
Nov 25, 2024
InspireMD has appointed Scott R. Ward, a seasoned executive with a rich history in medical technology and a track record of growth and innovation, to its Board of Directors. This strategic move is expected to leverage Ward’s extensive experience in the cardiovascular field as InspireMD gears up for potential U.S. approval of its groundbreaking CGuard Prime stent system, anticipated to set a new standard in carotid intervention and stroke prevention.
Product-Related AnnouncementsBusiness Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
InspireMD Achieves Record Q3 Revenue with CGuard Success
Positive
Nov 12, 2024
InspireMD, Inc. has reported record revenue for Q3 2024, driven by its CGuard Prime carotid stent system, which is moving towards potential U.S. approval. Recent developments include submitting a PMA application to the FDA and receiving IDE approval for pivotal trials. The company anticipates a U.S. commercial launch in early 2025, supported by a new Miami headquarters. Despite increased operating expenses, InspireMD’s strategic advancements position it for growth in the carotid artery disease treatment market.
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.