company background image
SOM

SomnoMedASX:SOM Stock Report

Market Cap

AU$202.8m

7D

18.0%

1Y

27.8%

Updated

26 Oct, 2021

Data

Company Financials +
SOM fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends0/6

SOM Overview

SomnoMed Limited, together with its subsidiaries, produces and sells devices for the oral treatment of sleep related disorders in Europe, North America, and the Asia Pacific region.

Rewards

Earnings are forecast to grow 77.02% per year

Risk Analysis

No risks detected for SOM from our risk checks.

SomnoMed Competitors

Vivos Therapeutics

NasdaqCM:VVOS

US$79.8m

Price History & Performance

Summary of all time highs, changes and price drops for SomnoMed
Historical stock prices
Current Share PriceAU$2.62
52 Week HighAU$1.73
52 Week LowAU$2.55
Beta1.32
1 Month Change11.49%
3 Month Change12.45%
1 Year Change27.81%
3 Year Change55.03%
5 Year Change-34.50%
Change since IPO-72.13%

Recent News & Updates

Oct 26
Is SomnoMed (ASX:SOM) Using Debt Sensibly?

Is SomnoMed (ASX:SOM) Using Debt Sensibly?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

May 12
Health Check: How Prudently Does SomnoMed (ASX:SOM) Use Debt?

Health Check: How Prudently Does SomnoMed (ASX:SOM) Use Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

SOMAU Medical EquipmentAU Market
7D18.0%0.3%0.8%
1Y27.8%-7.4%24.4%

Return vs Industry: SOM exceeded the Australian Medical Equipment industry which returned -7.4% over the past year.

Return vs Market: SOM exceeded the Australian Market which returned 24.4% over the past year.

Price Volatility

Is SOM's price volatile compared to industry and market?
SOM volatility
SOM Beta1.32
Industry Beta0.57
Market Beta1

Stable Share Price: SOM is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SOM's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1987n/aNeil Verdal-Austinhttps://somnomed.com/au/

SomnoMed Limited, together with its subsidiaries, produces and sells devices for the oral treatment of sleep related disorders in Europe, North America, and the Asia Pacific region. Its products include SomnoDent, an oral appliance for obstructive sleep apnea; and SomnoBrux, a mouthguard for the treatment of teeth grinding damage, as well as SomTabs for cleaning its devices. The company was incorporated in 1987 and is based in Crows Nest, Australia.

SomnoMed Fundamentals Summary

How do SomnoMed's earnings and revenue compare to its market cap?
SOM fundamental statistics
Market CapAU$202.76m
Earnings (TTM)-AU$1.08m
Revenue (TTM)AU$62.71m

3.5x

P/S Ratio

-200.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOM income statement (TTM)
RevenueAU$62.71m
Cost of RevenueAU$24.96m
Gross ProfitAU$37.74m
ExpensesAU$38.83m
Earnings-AU$1.08m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.013
Gross Margin60.19%
Net Profit Margin-1.73%
Debt/Equity Ratio7.3%

How did SOM perform over the long term?

See historical performance and comparison

Valuation

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

6.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SOM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SOM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SOM is unprofitable, so we can't compare its PE Ratio to the Australian Medical Equipment industry average.

PE vs Market: SOM is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SOM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SOM is overvalued based on its PB Ratio (6.7x) compared to the AU Medical Equipment industry average (4.5x).


Future Growth

How is SomnoMed forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

77.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: SOM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SOM's is expected to become profitable in the next 3 years.

Revenue vs Market: SOM's revenue (14.4% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: SOM's revenue (14.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOM's Return on Equity is forecast to be low in 3 years time (12.4%).


Past Performance

How has SomnoMed performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOM is currently unprofitable.

Growing Profit Margin: SOM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SOM is unprofitable, but has reduced losses over the past 5 years at a rate of 16.1% per year.

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

Earnings vs Industry: SOM is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (74.9%).


Return on Equity

High ROE: SOM has a negative Return on Equity (-3.37%), as it is currently unprofitable.


Financial Health

How is SomnoMed's financial position?


Financial Position Analysis

Short Term Liabilities: SOM's short term assets (A$34.1M) exceed its short term liabilities (A$16.2M).

Long Term Liabilities: SOM's short term assets (A$34.1M) exceed its long term liabilities (A$7.8M).


Debt to Equity History and Analysis

Debt Level: SOM's debt to equity ratio (7.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SOM's debt to equity ratio has reduced over the past 5 years.


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: SOM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: SOM has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 9.4% each year


Dividend

What is SomnoMed current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate SOM'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 SOM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOM'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 SOM'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?

2.5yrs

Average management tenure


CEO

Neil Verdal-Austin

2.92yrs

Tenure

AU$669,772

Compensation

Mr. Neil Verdal-Austin serves as a Managing Director and Director at SomnoMed Limited since August 24, 2020. He has been the Global Chief Executive of SomnoMed Limited since November 19, 2018. Mr. Verdal-A...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD502.08K) is about average for companies of similar size in the Australian market ($USD554.70K).

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


Leadership Team

Experienced Management: SOM's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: SOM's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SOM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SomnoMed Limited's employee growth, exchange listings and data sources


Key Information

  • Name: SomnoMed Limited
  • Ticker: SOM
  • Exchange: ASX
  • Founded: 1987
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: AU$202.760m
  • Shares outstanding: 82.76m
  • Website: https://somnomed.com/au/

Number of Employees


Location

  • SomnoMed Limited
  • 20 Clarke Street
  • Level 3
  • Crows Nest
  • New South Wales
  • 2065
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 07:02
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.