DB:SD4

Stock Analysis Report

Executive Summary

Spectral Medical Inc. focuses on the development and commercialization of treatment for septic shock in North America.


Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

How has Spectral Medical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SD4's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.8%

SD4

-1.8%

DE Biotechs

0.1%

DE Market


1 Year Return

120.1%

SD4

7.2%

DE Biotechs

14.1%

DE Market

Return vs Industry: SD4 exceeded the German Biotechs industry which returned 7.2% over the past year.

Return vs Market: SD4 exceeded the German Market which returned 14.1% over the past year.


Shareholder returns

SD4IndustryMarket
7 Day3.8%-1.8%0.1%
30 Day1.0%-2.9%0.2%
90 Day31.4%5.8%3.3%
1 Year120.1%120.1%7.5%7.2%17.6%14.1%
3 Year214.0%214.0%42.8%41.2%14.8%4.8%
5 Year53.3%53.3%11.6%9.3%22.2%5.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

45.98x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SD4's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SD4's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SD4 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: SD4 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SD4's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SD4 is overvalued based on its PB Ratio (47.2x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

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

61.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SD4's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if SD4's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SD4's revenue (61.7% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: SD4's revenue (61.7% 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 SD4's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Spectral Medical performed over the past 5 years?

27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SD4 is currently unprofitable.

Growing Profit Margin: SD4 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SD4 is unprofitable, but has reduced losses over the past 5 years at a rate of 27.1% per year.

Accelerating Growth: Unable to compare SD4's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SD4 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: SD4 has a negative Return on Equity (-83.74%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Spectral Medical's financial position?


Financial Position Analysis

Short Term Liabilities: SD4's short term assets (CA$3.8M) exceed its short term liabilities (CA$902.0K).

Long Term Liabilities: SD4's short term assets (CA$3.8M) exceed its long term liabilities (CA$687.0K).


Debt to Equity History and Analysis

Debt Level: SD4 is debt free.

Reducing Debt: SD4 has not had any debt for past 5 years.


Balance Sheet

Inventory Level: SD4 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SD4's debt is covered by short term assets.


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: SD4 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SD4 has sufficient cash runway for 1.3 years if free cash flow continues to grow at historical rates of 22.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SD4's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SD4's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SD4's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SD4'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 SD4's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Paul Walker (70yo)

18.8yrs

Tenure

CA$785,747

Compensation

Dr. Paul M. Walker, MD, PhD, FRCS, has been the Chief Executive Officer and President of Spectral Medical Inc. since April 2001. Dr. Walker serves as the Chief Executive Officer and President of Sepsis, In ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD592.58K) is above average for companies of similar size in the German market ($USD413.42K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Walker
President18.8yrsCA$785.75k0.83% CA$979.2k
Gualtiero Guadagni
Vice President of Sales & Marketing6.8yrsCA$298.61k0.054% CA$63.7k
Chris Seto
Chief Financial Officer0.5yrsno data0.0080% CA$9.5k

6.8yrs

Average Tenure

Experienced Management: SD4's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Walker
President18.8yrsCA$785.75k0.83% CA$979.2k
Guillermo Herrera
Independent Director13.4yrsCA$70.25k0.19% CA$223.3k
Kevin Giese
Independent Director9.9yrsCA$59.09k1.58% CA$1.9m
Anthony Bihl
Independent Chairman of the Board0yrsCA$84.26k0.25% CA$302.0k
William Stevens
Independent Director5.4yrsCA$53.36k0.17% CA$204.0k
Jun Hayakawa
Director1.8yrsno datano data

9.9yrs

Average Tenure

65yo

Average Age

Experienced Board: SD4's board of directors are considered experienced (9.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SD4 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 4.7%.


Top Shareholders

Company Information

Spectral Medical Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spectral Medical Inc.
  • Ticker: SD4
  • Exchange: DB
  • Founded: 1991
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$169.408m
  • Listing Market Cap: CA$118.655m
  • Shares outstanding: 225.88m
  • Website: https://www.spectraldx.com

Number of Employees


Location

  • Spectral Medical Inc.
  • 135 The West Mall
  • Unit 2
  • Toronto
  • Ontario
  • M9C 1C2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EDTTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 1992
EDTX.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1992
SD4DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1992

Biography

Spectral Medical Inc. focuses on the development and commercialization of treatment for septic shock in North America. The company markets Endotoxin Activity Assay, a rapid diagnostic test for the detection of components of gram negative bacterial cell wall in Europe and Canada; and Toraymyxin, a therapeutic hemoperfusion device that removes endotoxin from the bloodstream in Europe, Canada, and Japan. It also develops, produces, and markets recombinant proteins, antibodies, and calibrators for use in the research and development, as well as products that are manufactured by other diagnostic companies; and develops continuous renal replacement therapy, an open platform for other hemoperfusion cartridges. The company was formerly known as Spectral Diagnostics Inc. and changed its name to Spectral Medical Inc. in December 2014. Spectral Medical Inc. was founded in 1991 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:33
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.