Education
About Us
Working with TipRanks
Follow Us
NexGel Inc (NXGL)
NASDAQ:NXGL
Top Page
NexGel Inc
(NASDAQ:NXGL)
54Neutral
Positive Factors
Partnerships
A partnership with Cintas Corporation is expected to accelerate sales through Cintas' expansive distribution network.
Revenue Growth
NexGel reported revenue of $2.94M, up 141% year-over-year, exceeding both preliminary revenue guidance and analyst estimates.
Negative Factors
Market Cap Concerns
NexGel's market cap is only approximately $14 million, but it has secured agreements with large companies like AbbVie, Haleon, and STADA, showcasing its leadership in hydrogel patch technology.
NexGel Inc (NXGL) vs. S&P 500 (SPY)
Market Cap
$26.44M
Dividend YieldN/A
Average Volume (3M)70.08K
Price to Earnings (P/E)―
Beta (1Y)1.19
Revenue Growth90.49%
EPS Growth-21.10%
CountryUS
Employees19
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-0.58
Shares Outstanding6,790,777
10 Day Avg. Volume76,052
30 Day Avg. Volume70,076
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.85
Price to Cash Flow (P/CF)-4.00
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
$6.00Price Target Upside112.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
NexGel Inc Business Overview & Revenue Model
Company DescriptionNexGel Inc (NXGL) is a technology-driven company specializing in the development and manufacturing of high-performance hydrogel products. Operating within the healthcare and consumer product sectors, NexGel focuses on creating advanced hydrogel solutions designed for medical, skincare, and various industrial applications. The company's core products include hydrogels that are used in wound care, transdermal drug delivery, and cosmetic applications, offering unique properties such as superior moisture retention and enhanced bio-compatibility.
How the Company Makes MoneyNexGel Inc generates revenue primarily through the sale of its hydrogel products to various clients across the healthcare and consumer product industries. The company engages in direct sales to medical institutions, healthcare providers, and consumer goods companies that utilize its advanced hydrogel technology for their products. Key revenue streams include contracts and partnerships with manufacturers and distributors who incorporate NexGel's hydrogel technology into their own branded products. Additionally, NexGel may engage in licensing agreements, where other companies are authorized to use its proprietary hydrogel technology, contributing to its earnings through licensing fees and royalties.
NexGel Inc Financial Statement Overview
Summary
NexGel Inc displays strong revenue growth, with a TTM increase to $6.73 million from $4.09 million the previous year. However, persistent profitability issues and negative net income present challenges. The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.70, but increasing debt levels could pose risks. Cash flow management is poor, with negative operating and free cash flow, indicating a dependency on external funding.Income Statement
NexGel Inc's income statement reveals significant challenges. The company's revenue has been growing, with a TTM increase to $6.73 million from $4.09 million in the prior year. However, the net income remains negative, with a TTM net loss of $3.53 million. Gross profit margin improved to 29.39%, but the EBIT and EBITDA margins are still negative, indicating ongoing operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows a moderate capital structure with a debt-to-equity ratio of 0.70. While stockholders' equity decreased slightly, the company maintains a reasonable equity ratio of 44.33%. Total debt levels have increased, suggesting a reliance on debt financing which may pose a risk if not managed carefully.55
Neutral
Cash Flow
The cash flow statement indicates poor cash flow management, with negative operating cash flow and free cash flow in the TTM period. The operating cash flow to net income ratio is negative, reflecting challenges in converting income to cash. Positive financing cash flow highlights dependency on external funding to support operations.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.73M | 4.09M | 2.05M | 1.55M | 674.00K | 717.00K | Gross Profit |
| 1.98M | 619.00K | 256.00K | 9.00K | -291.00K | -137.00K | EBIT |
| -3.93M | -3.48M | -3.35M | -2.57M | -2.26M | -1.92M | EBITDA |
| -3.25M | -2.73M | -3.11M | -2.20M | -2.20M | -1.86M | Net Income Common Stockholders |
| -3.53M | -3.16M | -6.14M | -6.31M | -2.28M | -1.92M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 261.00K | 2.70M | 6.61M | 13.35M | 32.00K | 261.00K | Total Assets |
| 1.89M | 9.96M | 10.36M | 16.98M | 2.26M | 1.89M | Total Debt |
| 917.00K | 2.80M | 2.08M | 4.26M | 1.28M | 917.00K | Net Debt |
| 656.00K | 98.00K | 982.00K | -9.09M | 1.25M | 656.00K | Total Liabilities |
| 1.51M | 4.79M | 2.72M | 4.90M | 2.19M | 1.51M | Stockholders Equity |
| 380.00K | 4.70M | 7.64M | 12.09M | 71.00K | 380.00K |
| Cash Flow | Free Cash Flow | ||||
| -4.05M | -3.93M | -3.09M | -3.02M | -2.11M | -1.81M | Operating Cash Flow |
| -3.60M | -3.24M | -2.99M | -2.75M | -1.80M | -1.81M | Investing Cash Flow |
| -985.00K | 4.46M | -5.59M | -269.00K | -312.00K | 0.00 | Financing Cash Flow |
| 2.37M | 379.00K | -3.66M | 16.34M | 1.88M | 2.08M |
NexGel Inc Technical Analysis
Negative
2.82
Price Trends
3.49
Negative
3.45
Negative
2.97
Negative
Market Momentum
-0.19
Positive
38.07
Neutral
38.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXGL, the sentiment is Negative. The current price of 2.82 is below the 20-day moving average (MA) of 3.16, below the 50-day MA of 3.49, and below the 200-day MA of 2.97, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 38.07 is Neutral, neither overbought nor oversold. The STOCH value of 38.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NXGL.
NexGel Inc Risk Analysis
NexGel Inc disclosed 30 risk factors in its most recent earnings report. NexGel Inc 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
NexGel Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $13.06B | 31.63 | 7.82% | 2.44% | 4.58% | 55.99% | |
54 Neutral | $26.44M | ― | -67.96% | ― | 90.49% | -21.10% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
48 Neutral | $27.86M | ― | -7.71% | ― | -17.86% | -329.78% | |
42 Neutral | $241.55M | ― | -31.41% | ― | 389.82% | -22.66% | |
40 Underperform | $159.62M | ― | -154.01% | ― | 187.79% | 32.40% | |
35 Underperform | $3.76M | ― | -284.28% | ― | ― | 83.04% |
* Healthcare Sector Average
Performance Comparison
NXGL
NexGel Inc
2.89
0.03
1.05%
HSON
Hudson Global
10.10
-4.05
-28.62%
SNN
Smith & Nephew Snats
29.84
2.59
9.50%
XOMA
Xoma
20.50
-5.15
-20.08%
OCGN
Ocugen
0.55
-0.43
-43.88%
APVO
Aptevo Therapeutics
2.58
-148.01
-98.29%
NexGel Inc Earnings Call Summary
Earnings Call Date: Nov 13, 2024 | % Change Since: -14.29% | Next Earnings Date: Mar 26, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance with record revenue growth, improved gross profit margins, and successful strategic initiatives. However, the company faced increased costs and SG&A expenses, resulting in a net loss. Overall, the positive growth metrics and strategic achievements outweigh the challenges.Highlights
Record Revenue Growth
Revenue for the third quarter totaled $2.94 million, an increase of 141% year-over-year and 104% sequentially.
Gross Profit Margin Improvement
Gross profit margins improved significantly to 43.6% from 28.2% year-over-year and 28.5% sequentially.
Branded Consumer and Contract Manufacturing Success
Branded consumer revenue increased 99% sequentially, and contract manufacturing revenue increased approximately 103% sequentially.
Positive Adjusted EBITDA Trend
Adjusted EBITDA loss narrowed from $788,000 in Q2 to $347,000 in Q3 2024.
Strategic Acquisition and Product Launch
Silly George brand acquisition has contributed to a $5 million revenue run rate, and new products have been introduced.
Successful Expansion and Partnerships
Texas facility expansion completed, and partnerships with STADA and Cintas announced.
Lowlights
Increased Costs
Cost of revenues increased by $781,000 or approximately 89% due to higher sales of branded consumer products.
Higher SG&A Expenses
Selling, general, and administrative expenses increased by $1.2 million or approximately 118% due to advertising and marketing.
Net Loss
Net loss for the third quarter 2024 was $754,000 compared to $552,000 in the same quarter last year.
Company Guidance
During the third quarter of 2024, NEXGEL reported a record performance across key financial metrics. The company's revenue surged by 141% year-over-year to $2.94 million, with a sequential increase of 104%. Gross profit margins improved significantly to 43.6%, compared to 28.2% in the same period the previous year. Branded consumer revenue grew by 99% sequentially, while contract manufacturing revenue increased by approximately 103%. The company's adjusted EBITDA loss narrowed from $788,000 in Q2 2024 to $347,000 in Q3 2024, indicating progress towards becoming cash flow positive. The Silly George brand, acquired six months prior, contributed to a substantial increase in revenue, with a current run rate of $5 million heading into the holiday season. NEXGEL also completed the expansion of its Texas facility, which helped normalize contract manufacturing revenue, increasing it from $425,000 in Q2 to $864,000 in Q3. The company expects continued growth in Q4 2024, with anticipated revenue exceeding $3 million.NexGel Inc Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
NexGel Inc Announces New CFO Amid Strategic Growth
Positive
Jan 6, 2025
NEXGEL, Inc. has announced the appointment of Joseph F. McGuire as its new Chief Financial Officer, effective January 1, 2025. McGuire, who brings over 30 years of financial and public company experience, succeeds Adam E. Drapczuk III, who will continue to serve the company as a consultant. This leadership transition is expected to bolster NEXGEL’s financial operations and strategic growth as the company continues to expand in the healthcare sector.
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.