ASX:GID

Stock Analysis Report

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Executive Summary

GI Dynamics, Inc., a medical device company, designs, develops, manufactures, and markets medical devices for non-surgical approaches to treat type 2 diabetes and obesity.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has GI Dynamics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GID's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

GID

4.8%

AU Medical Equipment

2.2%

AU Market


1 Year Return

-91.7%

GID

3.6%

AU Medical Equipment

-10.5%

AU Market

Return vs Industry: GID underperformed the Australian Medical Equipment industry which returned 3.6% over the past year.

Return vs Market: GID underperformed the Australian Market which returned -10.5% over the past year.


Shareholder returns

GIDIndustryMarket
7 Day0%4.8%2.2%
30 Day-40.0%4.0%0.1%
90 Day-25.0%15.7%17.5%
1 Year-91.7%-91.7%5.3%3.6%-6.9%-10.5%
3 Year-95.7%-95.7%40.3%33.7%16.1%0.8%
5 Year-98.0%-98.0%93.3%78.4%31.2%2.9%

Price Volatility Vs. Market

How volatile is GI Dynamics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GI Dynamics undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether GI Dynamics is trading at an attractive price based on the cash flow it is expected to produce in the future. But as GI Dynamics has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of GID’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through GI Dynamics regulatory filings.
  • Explore potentially undervalued companies in the Healthcare industry.

Future Growth

How is GI Dynamics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

40.0%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as GI Dynamics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has GI Dynamics performed over the past 5 years?

30.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GID is currently unprofitable.

Growing Profit Margin: GID is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GID is unprofitable, but has reduced losses over the past 5 years at a rate of 30.4% per year.

Accelerating Growth: Unable to compare GID's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GID is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (14.7%).


Return on Equity

High ROE: GID's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is GI Dynamics's financial position?


Financial Position Analysis

Short Term Liabilities: GID has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: GID has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: GID has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: GID's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GID has sufficient cash runway for 4 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: Insufficient data to determine if GID has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is GI Dynamics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GID's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GID's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GID's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GID's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GID's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average board tenure


CEO

Scott Schorer (52yo)

4.33yrs

Tenure

US$1,924,589

Compensation

Mr. Scott W. Schorer has been the Chief Executive Officer and President of GI Dynamics, Inc. since March 2016. Mr. Schorer served as the Chief Executive Officer of PlasmaTech Biopharmaceuticals, Inc. since ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD1.92M) is above average for companies of similar size in the Australian market ($USD263.63K).

Compensation vs Earnings: Scott's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Manoel Neto
Scientific Advisor of Gastroenterology & Member of Scientific Advisory Board3.33yrsno datano data
Praveen Tyle
Independent Non-Executive Director0.42yrno datano data
Juliet Thompson
Independent Non-Executive Director2.92yrsUS$105.20kno data
Oern Stuge
Independent Non-Executive Director3.5yrsUS$97.20kno data
Daniel Moore
Independent Non-Executive Chairman4.17yrsUS$116.20k0.0027% $149.9
David Cummings
Member of Scientific Advisory Board3.33yrsno datano data
Francesco Rubino
Member of Scientific Advisory Board3.08yrsno datano data
Ricardo Cohen
Member of Scientific Advisory Board3.17yrsno datano data
Jan Greve
Member of Scientific Advisory Board3.33yrsno datano data
Carel le Roux
Member of Scientific Advisory Board3.33yrsno datano data

3.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: GID's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.1%.


Top Shareholders

Company Information

GI Dynamics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GI Dynamics, Inc.
  • Ticker: GID
  • Exchange: ASX
  • Founded: 2003
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: AU$5.490m
  • Shares outstanding: 1.83b
  • Website: https://www.gidynamics.com

Number of Employees


Location

  • GI Dynamics, Inc.
  • 320 Congress Street
  • 3rd Floor
  • Boston
  • Massachusetts
  • 2210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GIDASX (Australian Securities Exchange)YesSHS CHESS DEPAUAUDSep 2011
GIDY.LOTCPK (Pink Sheets LLC)YesSHS CHESS DEPUSUSDSep 2011
2GDDB (Deutsche Boerse AG)YesSHS CHESS DEPDEEURSep 2011
GIDCHIA (Chi-X Australia)YesSHS CHESS DEPAUAUDSep 2011
2GDBST (Boerse-Stuttgart)YesSHS CHESS DEPDEEURSep 2011

Biography

GI Dynamics, Inc., a medical device company, designs, develops, manufactures, and markets medical devices for non-surgical approaches to treat type 2 diabetes and obesity. The company offers EndoBarrier, a medical device for the treatment of patients with type 2 diabetes and reduction of obesity. It serves health care providers and third-party distributors. The company sells its products primarily in Europe, the Middle East, the Asia Pacific, and South America. GI Dynamics, Inc. was founded in 2003 and is headquartered in Boston, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 10:34
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.