Spectral Medical (TSX:EDT) - Share price, News & Analysis

EDT fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	0/6
Financial Health	1/6
Dividends	0/6

EDT Stock Overview

Spectral Medical Inc., together with its subsidiaries, focuses on the development and commercialization of products for the treatment of septic shock and renal disease in North America.

Rewards

Earnings are forecast to grow 85.7% per year

Risk Analysis

Has less than 1 year of cash runway

Negative shareholders equity

Volatile share price over the past 3 months

Does not have meaningful revenue (CA$2M)

+ 1 more risk

Spectral Medical Competitors

Covalon Technologies

TSXV:COV

CA$70.3m

BriaCell Therapeutics

TSX:BCT

CA$128.5m

Oncolytics Biotech

TSX:ONC

CA$98.4m

Aptose Biosciences

TSX:APS

CA$96.9m

Price History & Performance

Summary of all time highs, changes and price drops for Spectral Medical
Historical stock prices
Current Share Price	CA$0.46
52 Week High	CA$0.62
52 Week Low	CA$0.15
Beta	1.27
1 Month Change	13.58%
3 Month Change	55.93%
1 Year Change	37.31%
3 Year Change	22.67%
5 Year Change	15.00%
Change since IPO	-98.74%

Shareholder Returns

	EDT	CA Biotechs	CA Market
7D	-13.2%	-2.8%	3.0%
1Y	37.3%	11.1%	0.7%

Return vs Industry: EDT exceeded the Canadian Biotechs industry which returned 11.1% over the past year.

Return vs Market: EDT exceeded the Canadian Market which returned 0.7% over the past year.

Price Volatility

Is EDT's price volatile compared to industry and market?
EDT volatility
EDT Average Weekly Movement	16.4%
Biotechs Industry Average Movement	13.0%
Market Average Movement	10.6%
10% most volatile stocks in CA Market	18.9%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: EDT is more volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: EDT's weekly volatility has increased from 11% to 16% over the past year.

About the Company

Founded	Employees	CEO	Website
1991	31	Chris Seto	https://www.spectraldx.com

Spectral Medical Inc., together with its subsidiaries, focuses on the development and commercialization of products for the treatment of septic shock and renal disease in North America. The company markets Endotoxin Activity Assay, a rapid in vitro diagnostic test for the detection of components of gram negative bacterial cell wall; and Polymyxin B Hemoperfusion, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream. It also develops and manufactures monoclonal and polyclonal antibodies, recombinant cardiac proteins, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies; and develops platform for renal replacement therapy.

Spectral Medical Fundamentals Summary

How do Spectral Medical's earnings and revenue compare to its market cap?
EDT fundamental statistics
Market Cap	CA$123.35m
Earnings (TTM)	-CA$10.26m
Revenue (TTM)	CA$1.52m

81.4x

P/S Ratio

-12.0x

P/E Ratio

Is EDT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EDT income statement (TTM)
Revenue	CA$1.52m
Cost of Revenue	CA$956.00k
Gross Profit	CA$561.00k
Other Expenses	CA$10.82m
Earnings	-CA$10.26m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.038
Gross Margin	36.98%
Net Profit Margin	-676.47%
Debt/Equity Ratio	0%

How did EDT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is EDT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EDT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for EDT. This is calculated by dividing EDT's market cap by their current preferred multiple.
What is EDT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CA$123.35m

EDT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	79.4x
Enterprise Value/EBITDA	-12.1x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does EDT's PB Ratio compare to its peers?

EDT PB Ratio vs Peers

The above table shows the PB ratio for EDT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	2.6x
COV Covalon Technologies	2.4x	n/a	CA$70.3m
BCT BriaCell Therapeutics	2.2x	-25.5%	CA$128.5m
ONC Oncolytics Biotech	3.2x	-6.8%	CA$98.4m
APS Aptose Biosciences	1.4x	23.0%	CA$96.9m
EDT Spectral Medical	n/a	85.7%	CA$123.4m

Price-To-Book vs Peers: EDT is good value based on its Price-To-Book Ratio (-175.6x) compared to the peer average (2.6x).

Price to Earnings Ratio vs Industry

How does EDT's PE Ratio compare vs other companies in the CA Biotechs Industry?

Price-To-Book vs Industry: EDT is good value based on its Price-To-Book Ratio (-175.6x) compared to the Canadian Biotechs industry average (2.7x)

Price to Book Ratio vs Fair Ratio

What is EDT's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EDT PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	-175.6x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate EDT's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of EDT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate EDT's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate EDT's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Take a look at Spectral Medical's forecasted future earnings and revenues from industry analysts to understand how the company is expected to perform in the future against its competitors and the wider market.
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 Spectral Medical regulatory filings.

Future Growth

How is Spectral Medical forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

85.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

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

High Growth Earnings: EDT is expected to become profitable in the next 3 years.

Revenue vs Market: EDT's revenue (94.8% per year) is forecast to grow faster than the Canadian market (6.7% per year).

High Growth Revenue: EDT's revenue (94.8% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if EDT's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Spectral Medical performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-22.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EDT is currently unprofitable.

Growing Profit Margin: EDT is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: EDT is unprofitable, and losses have increased over the past 5 years at a rate of 22.8% per year.

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

Earnings vs Industry: EDT is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (29.2%).

Return on Equity

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

Discover strong past performing companies

Financial Health

How is Spectral Medical's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

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

Long Term Liabilities: EDT 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: EDT is debt free.

Reducing Debt: EDT'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: EDT has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: EDT has less than a year of cash runway if free cash flow continues to grow at historical rates of 4.7% each year.

Discover healthy companies

Dividend

What is Spectral Medical current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

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

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as EDT has not reported any payouts.

Discover strong dividend paying companies

Management

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

1.4yrs

Average management tenure

CEO

Chris Seto

1.33yrs

Tenure

CA$862,285

Compensation

Mr. Christopher Seto, also known as Chris, serves as Director for Spectral Medical Inc. since November 12, 2021. He has been Chief Executive Officer of Spectral Medical Inc. since April 1, 2021. Mr. Seto h...

CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD673.91K) is above average for companies of similar size in the Canadian market ($USD186.79K).

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

Leadership Team

Experienced Management: EDT's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.

Board Members

Experienced Board: EDT's board of directors are considered experienced (3.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: EDT insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/13 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31