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Sanara MedTech (SMTI)
NASDAQ:SMTI
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Sanara MedTech
(NASDAQ:SMTI)
56Neutral
Positive Factors
Leadership
Sanara has appointed Elizabeth Taylor as the Chief Financial Officer, bringing over 25 years of financial experience to the company.
Revenue Growth
Revenue grew 33%, driven by sales of soft tissue products in the Sanara Surgical segment.
Strategic Agreements
Sanara entered an exclusive license and distribution agreement for a breakthrough device for fracture management.
Negative Factors
Net Loss
The company reported a net loss of $9.7M for FY2024, although it was less than the estimated loss.
Sales Normalization
Approximately $1.8M of BIASURGE sales was due to a unique situation (Hurricane Helene), and BIASURGE sales are expected to normalize.
Sanara MedTech (SMTI) vs. S&P 500 (SPY)
Market Cap
$247.38M
Dividend YieldN/A
Average Volume (3M)28.65K
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth33.36%
EPS Growth-118.51%
CountryUS
Employees141
SectorHealthcare
Sector Strength77
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-1.14
Shares Outstanding8,901,903
10 Day Avg. Volume38,558
30 Day Avg. Volume28,652
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.76
Price to Cash Flow (P/CF)35.80
P/FCF Ratio24.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$48.50Price Target Upside74.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Sanara MedTech Business Overview & Revenue Model
Company DescriptionSanara MedTech (SMTI) is a medical technology company focused on developing and commercializing products for wound and skin care. It operates in the healthcare sector, specifically targeting the advanced wound care market. The company's core products are designed to improve patient outcomes and include proprietary technologies for wound healing and infection prevention.
How the Company Makes MoneySanara MedTech makes money through the sale of its advanced wound care products to hospitals, clinics, and other healthcare providers. The company's revenue model is primarily product-based, with income generated from the direct sale of its proprietary wound care solutions. Key revenue streams include its line of wound healing and infection prevention products. Sanara MedTech may also engage in partnerships with other healthcare entities to expand its market reach and enhance its product distribution. Collaborations with medical professionals and participation in clinical studies can also contribute to the company's earnings by validating the effectiveness of its products and facilitating broader adoption.
Sanara MedTech Financial Statement Overview
Summary
Sanara MedTech shows strong revenue growth, yet faces challenges with profitability and cash flow management. The company maintains prudent leverage with a stable equity position, but negative EBIT and cash flows highlight operational inefficiencies that could impede long-term success.Income Statement
Sanara MedTech exhibits strong revenue growth over the years, with a notable increase from $11.77 million in 2019 to $86.67 million in 2024, indicating a healthy expansion trajectory. However, the company consistently reports negative EBIT and net income, suggesting ongoing operational challenges and profitability issues. Despite high gross profit margins, the negative net profit margin reflects the company's struggle to control expenses relative to revenue.65
Positive
Balance Sheet
The company's balance sheet shows a reasonable debt-to-equity ratio, with total debt significantly lower than stockholders' equity, indicating prudent leverage use. However, declining stockholders' equity and total assets over recent years may limit future flexibility. The equity ratio remains stable, reflecting adequate asset financing through equity, yet the high liabilities-to-assets ratio in the latest year highlights potential financial risks.58
Neutral
Cash Flow
Sanara MedTech's cash flow statements indicate consistent negative free cash flow, underscoring cash management challenges. Although operating cash flow has improved slightly in recent years, it remains negative, reflecting issues with generating sufficient cash from core operations. Financing cash flow is positive due to capital raising efforts, which may not be sustainable in the long term.54
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 86.67M | 64.99M | 45.84M | 24.14M | 15.59M | Gross Profit |
| 78.53M | 57.14M | 39.48M | 21.83M | 13.97M | EBIT |
| -6.72M | -4.22M | -12.23M | -7.38M | -5.00M | EBITDA |
| -1.86M | -289.10K | -11.85M | -7.22M | -4.02M | Net Income Common Stockholders |
| -9.66M | -4.30M | -8.09M | -7.31M | -4.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 15.88M | 5.15M | 8.96M | 18.65M | 455.37K | Total Assets |
| 88.09M | 73.87M | 61.04M | 36.40M | 9.83M | Total Debt |
| 1.60M | 11.79M | 819.22K | 425.44K | 481.38K | Net Debt |
| -14.28M | 6.64M | -8.14M | -18.23M | 26.02K | Total Liabilities |
| 49.18M | 29.28M | 19.32M | 6.24M | 3.99M | Stockholders Equity |
| 39.40M | 44.83M | 41.83M | 30.64M | 6.15M |
| Cash Flow | Free Cash Flow | |||
| -229.63K | -3.51M | -6.30M | -5.56M | -5.68M | Operating Cash Flow |
| -23.78K | -3.25M | -5.55M | -4.81M | -4.03M | Investing Cash Flow |
| -6.61M | -10.21M | -3.51M | -5.28M | -2.74M | Financing Cash Flow |
| 17.37M | 9.64M | -627.35K | 28.30M | 622.33K |
Sanara MedTech Technical Analysis
Negative
27.79
Price Trends
33.68
Negative
34.27
Negative
32.75
Negative
Market Momentum
-0.79
Positive
43.63
Neutral
27.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMTI, the sentiment is Negative. The current price of 27.79 is below the 20-day moving average (MA) of 31.69, below the 50-day MA of 33.68, and below the 200-day MA of 32.75, indicating a bearish trend. The MACD of -0.79 indicates Positive momentum. The RSI at 43.63 is Neutral, neither overbought nor oversold. The STOCH value of 27.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMTI.
Sanara MedTech Risk Analysis
Sanara MedTech disclosed 49 risk factors in its most recent earnings report. Sanara MedTech 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
Sanara MedTech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.28B | 66.99 | 19.39% | ― | 82.74% | ― | |
60 Neutral | $3.15B | ― | -75.27% | ― | 20.13% | 10.05% | |
60 Neutral | $571.84M | ― | -18.38% | ― | 20.37% | 34.10% | |
56 Neutral | $247.38M | ― | -22.95% | ― | 33.36% | -118.51% | |
55 Neutral | $67.76M | ― | -63.82% | ― | -9.49% | 39.20% | |
48 Neutral | $6.36B | 1.14 | -49.00% | 2.63% | 17.14% | 1.39% | |
36 Underperform | $201.86K | ― | ― | -32.57% | -15.03% |
* Healthcare Sector Average
Performance Comparison
SMTI
Sanara MedTech
27.79
-6.21
-18.26%
CUTRQ
Cutera
0.01
-1.52
-99.35%
MLSS
Milestone Scientific
0.87
0.24
38.10%
IRTC
Irhythm Technologies
100.34
-12.70
-11.23%
SIBN
SI-Bone
13.47
-1.85
-12.08%
TMDX
TransMedics Group
67.67
-22.26
-24.75%
Sanara MedTech Earnings Call Summary
Earnings Call Date: Mar 25, 2025 | % Change Since: -22.14% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
Sanara MedTech showcased strong revenue growth and profitability improvements, especially in the Sanara Surgical segment. The company expanded its market presence and strategic partnerships, contributing to positive financial performance. However, increased operating expenses and fourth-quarter net losses, especially in the Tissue Health Plus segment, present challenges. Overall, the sentiment of the call is positive, given the significant achievements and strategic advancements outweighing the financial setbacks.Highlights
Strong Year-Over-Year Revenue Growth
The company generated net revenue of $86.7 million for the full-year 2024, representing growth of 33% year-over-year, driven by strong sales of self-tissue products and bone fusion products.
Positive Adjusted EBITDA
The company achieved positive adjusted EBITDA of $2.7 million in 2024, an increase of $2.6 million compared to 2023, reflecting significant profitability improvements within the Sanara Surgical segment.
Commercial Expansion and Strategic Agreements
Sanara expanded its sales coverage, increased distributor partners to over 350, and entered into strategic agreements with Biomimetic Innovations, securing exclusive rights to innovative products.
Successful Financial Management
Net cash use in operating activities was essentially break-even in 2024, with only $24,000 of cash used, compared to $3.2 million in 2023, and a new debt facility was secured for up to $55 million.
Fourth Quarter Revenue Performance
Fourth quarter net revenue grew 49% year-over-year to $26.3 million, with soft tissue repair products increasing 56% and bone fusion products increasing 8%.
Innovation and Intellectual Property Development
The company submitted 11 provisional patent applications in 2024, covering innovations in antimicrobial technologies and hydrolyzed collagen.
Lowlights
Increased Operating Expenses
Fourth quarter operating expenses increased by 51% to $24.4 million, including a significant rise in selling, general, and administrative expenses and a 270% increase in research and development expenses.
Net Loss in Fourth Quarter
Net loss for the fourth quarter was $1.7 million, or $0.20 per diluted share, compared to a net loss of $0.3 million, or $0.03 per diluted share last year.
Loss in Tissue Health Plus Segment
The Tissue Health Plus segment generated a net loss of $2.6 million in the fourth quarter, compared to net income of $0.5 million last year.
Company Guidance
In the Sanara MedTech earnings call for the fourth quarter and full year 2024, the company reported a net revenue of $86.7 million for the year, marking a 33% growth compared to the previous year. This was largely driven by a 39% increase in sales of soft tissue products, amounting to $76.1 million, and a 6% rise in bone fusion product sales to $10.5 million. The company achieved a positive adjusted EBITDA of $2.7 million, reflecting a $2.6 million improvement year-over-year. Sanara Surgical segment's adjusted EBITDA rose by 73% to $9.1 million, although this was partially offset by continued investments in the Tissue Health Plus (THP) segment. The company ended the year with $15.9 million in cash and $24.5 million available for future borrowings. Looking forward, Sanara aims to enhance market penetration and surgeon adoption of its products in 2025, alongside launching a pilot program for the THP segment.Sanara MedTech Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Sanara MedTech Strengthens Leadership with New CFO Appointment
Positive
Jan 22, 2025
On January 21, 2025, Sanara MedTech announced the appointment of Elizabeth B. Taylor as the new Chief Financial Officer, effective January 15, 2025, succeeding Michael D. McNeil, who transitions to Chief Accounting Officer and Chief Administrative Officer. Taylor brings over 25 years of financial experience, enhancing Sanara’s leadership as it seeks growth in its market focus areas. This leadership change signifies the company’s strategic efforts to strengthen its financial operations and market positioning, potentially impacting stakeholders by optimizing the company’s growth and operational progress.
Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and Strategy
Sanara MedTech Secures U.S. Rights for OsStic
Positive
Jan 22, 2025
On January 21, 2025, Sanara MedTech Inc. announced an exclusive licensing and distribution agreement with Biomimetic Innovations Ltd., acquiring U.S. marketing rights for OsStic® and related technologies, which address over 100,000 annual U.S. procedures. The agreement is complemented by Sanara’s €8.0 million investment in Biomimetic, granting them a 12.5% equity stake and board representation. This strategic move is expected to enhance Sanara’s surgical portfolio and market positioning, leveraging the FDA’s Breakthrough Device Designation for OsStic to introduce these innovative solutions to the U.S. market by early 2027.
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.