ZYNEX INC (ZYXI) Stock Fundamental Analysis
NASDAQ:ZYXI - Nasdaq - US98986M1036 - Common Stock - Currency: USD
ZYXI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 191 industry peers in the Health Care Equipment & Supplies industry. ZYXI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ZYXI has a decent growth rate and is not valued too expensively. These ratings would make ZYXI suitable for quality investing!
1. Profitability
1.1 Basic Checks
ZYXI had positive earnings in the past year.
In the past year ZYXI had a positive cash flow from operations.
In the past 5 years ZYXI has always been profitable.
In the past 5 years ZYXI always reported a positive cash flow from operatings.
1.2 Ratios
ZYXI has a better Return On Assets (2.45%) than 76.96% of its industry peers.
ZYXI's Return On Equity of 8.38% is amongst the best of the industry. ZYXI outperforms 83.25% of its industry peers.
ZYXI has a better Return On Invested Capital (4.55%) than 77.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ZYXI is above the industry average of 7.68%.
The 3 year average ROIC (10.34%) for ZYXI is well above the current ROIC(4.55%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 8.38% | ||
| ROIC | 4.55% |
ROA(3y)8.05%
ROA(5y)9.92%
ROE(3y)18.36%
ROE(5y)18.84%
ROIC(3y)10.34%
ROIC(5y)12.1%
1.3 Margins
Looking at the Profit Margin, with a value of 1.56%, ZYXI is in the better half of the industry, outperforming 74.87% of the companies in the same industry.
In the last couple of years the Profit Margin of ZYXI has declined.
ZYXI has a better Operating Margin (3.11%) than 70.16% of its industry peers.
ZYXI's Operating Margin has declined in the last couple of years.
ZYXI has a better Gross Margin (80.07%) than 92.67% of its industry peers.
ZYXI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.11% | ||
| PM (TTM) | 1.56% | ||
| GM | 80.07% |
OM growth 3Y-43.42%
OM growth 5Y-33.75%
PM growth 3Y-50.87%
PM growth 5Y-40.5%
GM growth 3Y0.14%
GM growth 5Y-0.29%
2. Health
2.1 Basic Checks
ZYXI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ZYXI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ZYXI has less shares outstanding
ZYXI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.10 indicates that ZYXI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.10, ZYXI is doing good in the industry, outperforming 71.73% of the companies in the same industry.
The Debt to FCF ratio of ZYXI is 4.91, which is a neutral value as it means it would take ZYXI, 4.91 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 4.91, ZYXI belongs to the best of the industry, outperforming 80.63% of the companies in the same industry.
ZYXI has a Debt/Equity ratio of 1.66. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.66, ZYXI is doing worse than 80.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.66 | ||
| Debt/FCF | 4.91 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.53
WACC8.56%
2.3 Liquidity
A Current Ratio of 4.46 indicates that ZYXI has no problem at all paying its short term obligations.
ZYXI has a Current ratio of 4.46. This is in the better half of the industry: ZYXI outperforms 72.77% of its industry peers.
ZYXI has a Quick Ratio of 3.63. This indicates that ZYXI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ZYXI (3.63) is better than 71.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.46 | ||
| Quick Ratio | 3.63 |
3. Growth
3.1 Past
The earnings per share for ZYXI have decreased strongly by -79.55% in the last year.
ZYXI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.77% yearly.
ZYXI shows a small growth in Revenue. In the last year, the Revenue has grown by 4.36%.
Measured over the past years, ZYXI shows a very strong growth in Revenue. The Revenue has been growing by 33.42% on average per year.
EPS 1Y (TTM)-79.55%
EPS 3Y-41.04%
EPS 5Y-18.77%
EPS Q2Q%-109.52%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y13.86%
Revenue growth 5Y33.42%
Sales Q2Q%-2.77%
3.2 Future
Based on estimates for the next years, ZYXI will show a very strong growth in Earnings Per Share. The EPS will grow by 28.57% on average per year.
The Revenue is expected to grow by 7.08% on average over the next years.
EPS Next Y-281.33%
EPS Next 2Y-102.4%
EPS Next 3Y-62.19%
EPS Next 5Y28.57%
Revenue Next Year-30.32%
Revenue Next 2Y-7.37%
Revenue Next 3Y0.04%
Revenue Next 5Y7.08%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.11, ZYXI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ZYXI is valued a bit cheaper than the industry average as 78.53% of the companies are valued more expensively.
ZYXI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.33, which is the current average of the S&P500 Index.
ZYXI is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.11 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ZYXI indicates a rather cheap valuation: ZYXI is cheaper than 93.72% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ZYXI is valued cheaper than 99.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.63 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
The decent profitability rating of ZYXI may justify a higher PE ratio.
A cheap valuation may be justified as ZYXI's earnings are expected to decrease with -62.19% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-102.4%
EPS Next 3Y-62.19%
5. Dividend
5.1 Amount
ZYXI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.26
+0.13 (+6.1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners26.51%
Inst Owner Change-0.11%
Ins Owners51.18%
Ins Owner Change-6.61%
Market Cap68.32M
Analysts77.78
Price Target10.46 (362.83%)
Short Float %28.39%
Short Ratio23.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-65.69%
DP0.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-50.34%
Min EPS beat(2)-121.79%
Max EPS beat(2)21.1%
EPS beat(4)1
Avg EPS beat(4)-62.38%
Min EPS beat(4)-121.79%
Max EPS beat(4)21.1%
EPS beat(8)5
Avg EPS beat(8)8.36%
EPS beat(12)8
Avg EPS beat(12)3.85%
EPS beat(16)12
Avg EPS beat(16)8.67%
Revenue beat(2)0
Avg Revenue beat(2)-9.81%
Min Revenue beat(2)-15.99%
Max Revenue beat(2)-3.62%
Revenue beat(4)0
Avg Revenue beat(4)-7.52%
Min Revenue beat(4)-15.99%
Max Revenue beat(4)-3.62%
Revenue beat(8)1
Avg Revenue beat(8)-5.49%
Revenue beat(12)1
Avg Revenue beat(12)-4.32%
Revenue beat(16)1
Avg Revenue beat(16)-3.91%
PT rev (1m)0%
PT rev (3m)-41.43%
EPS NQ rev (1m)-500%
EPS NQ rev (3m)-500%
EPS NY rev (1m)-133.57%
EPS NY rev (3m)-133.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-42.33%
Revenue NY rev (1m)-41.83%
Revenue NY rev (3m)-41.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.11 | ||
| Fwd PE | N/A | ||
| P/S | 0.36 | ||
| P/FCF | 5.63 | ||
| P/OCF | 5.37 | ||
| P/B | 1.91 | ||
| P/tB | 8.48 | ||
| EV/EBITDA | 7.84 |
EPS(TTM)0.09
EY3.98%
EPS(NY)-0.16
Fwd EYN/A
FCF(TTM)0.4
FCFY17.77%
OCF(TTM)0.42
OCFY18.62%
SpS6.36
BVpS1.18
TBVpS0.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 8.38% | ||
| ROCE | 5.69% | ||
| ROIC | 4.55% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 12.63% | ||
| OM | 3.11% | ||
| PM (TTM) | 1.56% | ||
| GM | 80.07% | ||
| FCFM | 6.31% |
ROA(3y)8.05%
ROA(5y)9.92%
ROE(3y)18.36%
ROE(5y)18.84%
ROIC(3y)10.34%
ROIC(5y)12.1%
ROICexc(3y)14.43%
ROICexc(5y)21.14%
ROICexgc(3y)23.89%
ROICexgc(5y)31.1%
ROCE(3y)12.93%
ROCE(5y)15.14%
ROICexcg growth 3Y-35.88%
ROICexcg growth 5Y-33.56%
ROICexc growth 3Y-34.86%
ROICexc growth 5Y-40.45%
OM growth 3Y-43.42%
OM growth 5Y-33.75%
PM growth 3Y-50.87%
PM growth 5Y-40.5%
GM growth 3Y0.14%
GM growth 5Y-0.29%
F-Score6
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.66 | ||
| Debt/FCF | 4.91 | ||
| Debt/EBITDA | 5.51 | ||
| Cap/Depr | 12.09% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 2 | ||
| Cash Conversion | 118.09% | ||
| Profit Quality | 405.58% | ||
| Current Ratio | 4.46 | ||
| Quick Ratio | 3.63 | ||
| Altman-Z | 3.1 |
F-Score6
WACC8.56%
ROIC/WACC0.53
Cap/Depr(3y)18.03%
Cap/Depr(5y)28.76%
Cap/Sales(3y)0.41%
Cap/Sales(5y)0.58%
Profit Quality(3y)218.02%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-79.55%
EPS 3Y-41.04%
EPS 5Y-18.77%
EPS Q2Q%-109.52%
EPS Next Y-281.33%
EPS Next 2Y-102.4%
EPS Next 3Y-62.19%
EPS Next 5Y28.57%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y13.86%
Revenue growth 5Y33.42%
Sales Q2Q%-2.77%
Revenue Next Year-30.32%
Revenue Next 2Y-7.37%
Revenue Next 3Y0.04%
Revenue Next 5Y7.08%
EBIT growth 1Y-44.42%
EBIT growth 3Y-35.57%
EBIT growth 5Y-11.61%
EBIT Next Year-196.22%
EBIT Next 3Y-29.5%
EBIT Next 5Y16.87%
FCF growth 1Y-26.63%
FCF growth 3Y24.19%
FCF growth 5Y14.61%
OCF growth 1Y-28.36%
OCF growth 3Y22.32%
OCF growth 5Y15.09%