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Sensus Healthcare (SRTS)
NASDAQ:SRTS
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Sensus Healthcare
(NASDAQ:SRTS)68Neutral
Positive Factors
Financial Performance
Sensus Healthcare reported a 71% year-over-year revenue growth for FY2024, beating projections and supporting a Buy rating.
Market Demand
The company shipped a record number of SRT systems in FY2024, exceeding expectations and showing strong market demand.
Negative Factors
Customer Competition
Sensus now has a model that competes with its largest customer.
Sensus Healthcare (SRTS) vs. S&P 500 (SPY)
Market Cap
$72.94M
Dividend YieldN/A
Average Volume (3M)464.55K
Price to Earnings (P/E)11.5
Beta (1Y)1.75
Revenue Growth65.60%
EPS GrowthN/A
CountryUS
Employees35
SectorHealthcare
Sector Strength74
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)0.41
Shares Outstanding16,390,050
10 Day Avg. Volume283,218
30 Day Avg. Volume464,552
Financial Highlights & Ratios
PEG Ratio0.00903
Price to Book (P/B)N/A
Price to Sales (P/S)1.77
Price to Cash Flow (P/CF)4.60
P/FCF Ratio5.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.50Price Target Upside202.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Sensus Healthcare Business Overview & Revenue Model
Company DescriptionSensus Healthcare, Inc. (SRTS) is a medical device company that specializes in providing non-invasive and cost-effective treatments for non-melanoma skin cancers and keloids using superficial radiation therapy (SRT). The company's flagship product, the SRT-100, is designed to provide patients with an alternative to surgical procedures for treating skin conditions. Sensus Healthcare operates within the healthcare sector, focusing on dermatology and oncology markets.
How the Company Makes MoneySensus Healthcare generates revenue primarily through the sale and leasing of its SRT devices, including the SRT-100, to dermatologists, oncologists, and hospitals. The company also earns revenue from service agreements, providing maintenance and support for its installed devices. Additionally, Sensus may benefit from partnerships with healthcare providers and institutions that expand the reach and adoption of its technology. These arrangements can include collaborative research, marketing initiatives, and training programs to enhance the utilization of SRT treatments.
Sensus Healthcare Financial Statement Overview
Summary
Sensus Healthcare has shown strong revenue and profit growth with substantial improvements in gross profit and net profit margins. The balance sheet is robust with low leverage and high equity, reflecting financial stability. However, cash flow remains a challenge with negative free cash flow, indicating a need for improved cash management strategies.Income Statement
Sensus Healthcare showed remarkable revenue growth of 71.3% from the previous year. The gross profit margin improved significantly to 58.4%, reflecting increased operational efficiency. Net profit margin also improved substantially to 15.9%, indicating enhanced profitability. However, the EBIT margin of 19.3% and EBITDA margin of 19.3% suggest room for improvement in controlling operating expenses.78
Positive
Balance Sheet
The company maintains a strong equity position with an equity ratio of 89.8%, demonstrating financial stability. The debt-to-equity ratio is low at 0.01, indicating minimal leverage and reduced financial risk. Return on equity improved significantly to 11.9%, showcasing effective utilization of shareholder funds. Overall, the balance sheet reflects solid financial health.85
Very Positive
Cash Flow
Sensus Healthcare's free cash flow improved but remains negative, indicating potential challenges in cash management. The operating cash flow to net income ratio is negative, suggesting a need to enhance cash generation from operations. Despite these challenges, the free cash flow deficit has narrowed, showing some progress towards achieving positive cash flows.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 41.31M | 41.81M | 24.41M | 44.53M | 27.04M | 9.58M | Gross Profit |
| 25.15M | 24.43M | 14.06M | 29.63M | 16.99M | 5.25M | EBIT |
| 11.94M | 8.09M | -382.00K | 14.83M | 4.12M | -8.23M | EBITDA |
| 12.39M | 8.09M | 79.00K | 14.83M | 4.73M | -6.10M | Net Income Common Stockholders |
| 9.31M | 6.65M | 485.00K | 24.24M | 4.12M | -4.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 15.38M | 22.06M | 23.15M | 25.52M | 14.52M | 14.91M | Total Assets |
| 33.25M | 62.16M | 53.71M | 56.73M | 32.24M | 28.01M | Total Debt |
| 0.00 | 602.00K | 783.00K | 1.02M | 225.00K | 1.38M | Net Debt |
| -12.48M | -21.45M | -22.36M | -24.50M | -14.29M | -13.52M | Total Liabilities |
| 6.79M | 6.34M | 4.87M | 8.67M | 6.22M | 6.51M | Stockholders Equity |
| 26.46M | 55.83M | 48.84M | 48.07M | 26.02M | 21.50M |
| Cash Flow | Free Cash Flow | ||||
| 2.32M | -831.00K | -2.37M | -1.57M | -414.00K | -792.73K | Operating Cash Flow |
| 2.66M | -831.00K | -2.15M | -1.41M | -286.00K | -434.18K | Investing Cash Flow |
| -386.00K | -276.00K | -187.00K | 14.84M | 129.00K | 7.03M | Financing Cash Flow |
| -20.00K | 15.00K | -40.00K | -2.43M | -231.00K | 210.01K |
Sensus Healthcare Technical Analysis
Negative
4.46
Price Trends
6.39
Negative
6.95
Negative
6.44
Negative
Market Momentum
-0.62
Positive
32.03
Neutral
16.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRTS, the sentiment is Negative. The current price of 4.46 is below the 20-day moving average (MA) of 5.29, below the 50-day MA of 6.39, and below the 200-day MA of 6.44, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 32.03 is Neutral, neither overbought nor oversold. The STOCH value of 16.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRTS.
Sensus Healthcare Risk Analysis
Sensus Healthcare disclosed 25 risk factors in its most recent earnings report. Sensus Healthcare 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
Sensus Healthcare Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.31B | 8.23 | 24.31% | ― | -19.76% | 0.38% | |
75 Outperform | $222.91M | 34.41 | 16.11% | ― | 15.35% | 71.35% | |
68 Neutral | $72.94M | 11.53 | 12.70% | ― | 65.60% | ― | |
61 Neutral | $3.37B | ― | -75.27% | ― | 20.13% | 10.05% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
36 Underperform | $6.35M | ― | 52.08% | ― | -32.57% | -15.03% |
* Healthcare Sector Average
Performance Comparison
SRTS
Sensus Healthcare
4.46
0.30
7.21%
CUTR
Cutera
0.12
-1.86
-93.94%
ELMD
Electromed
24.71
7.52
43.75%
IRTC
Irhythm Technologies
101.39
-10.27
-9.20%
INMD
InMode
19.31
-2.66
-12.11%
Sensus Healthcare Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -50.39% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook for Sensus Healthcare, highlighted by strong revenue growth and profitability, successful product sales, and strategic initiatives like the Fair Deal Agreement program. However, challenges such as decreased gross profit margins and increased operating expenses were noted. The company's expansion into international markets and new sectors like veterinary medicine are promising, although seasonality may impact near-term sales.Highlights
Record Revenue Growth
Sensus Healthcare reported a 71% increase in annual revenue, reaching $41.8 million compared to $24.4 million in 2023.
Increase in SRT-100 System Sales
The company delivered a record 115 SRT-100 systems in 2024, a 74% increase over the previous year, with 39 systems delivered in the fourth quarter alone.
Strong Profitability
Sensus achieved its fifth consecutive quarter of profitability with a net income of $1.4 million, ending the year with $22.1 million in cash and no debt.
Expansion of Fair Deal Agreement Program
The Fair Deal Agreement program gained significant traction, particularly among large dermatology groups, creating recurring revenue streams.
International Market Penetration
Five systems were shipped to international customers in the fourth quarter, contributing to a total of ten international shipments for the year.
Entry into Veterinary Market
Sensus sold its first SRT system to a veterinary clinic, indicating potential for expansion into the animal health sector.
Lowlights
Decrease in Gross Profit Margin
Gross profit margin decreased from 62.3% to 54.4% year-over-year, primarily due to a one-time discount to a new large group customer and higher service costs.
Increase in Operating Expenses
General and administrative expenses rose significantly from $0.9 million to $2.4 million due to higher compensation and professional fees.
Potential Impact of Seasonality
It was noted that the first quarter of 2025 could see considerably lower sales compared to the first quarter of 2024 due to seasonality and conference schedules.
Company Guidance
During the Sensus Healthcare Fourth Quarter 2024 Financial Results Conference Call, the company provided detailed guidance on its financial performance and strategic initiatives. Sensus reported a quarterly revenue of $13.1 million and an annual revenue of $41.8 million, marking a significant 71% increase from 2023. The company achieved its fifth consecutive quarter of profitability, with a net income of $1.4 million for Q4. Notably, Sensus shipped a record 39 SRT-100 systems in the fourth quarter and 115 for the year, with five and ten units going to international customers, respectively. The call highlighted the success of the Fair Deal Agreement Program, which provides flexible, recurring revenue streams by allowing customers to acquire SRT systems via an operating lease-like structure. The company ended the year with $22.1 million in cash and no debt, positioning it well for continued investment in research and development, sales, and marketing efforts. Looking forward, Sensus is optimistic about its growth trajectory in 2025, particularly from the Fair Deal Agreement's contribution to revenue in the latter half of the year.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.