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EAR

Eargo NasdaqGS:EAR Stock Report

Last Price

US$1.13

Market Cap

US$44.5m

7D

-8.1%

1Y

-95.4%

Updated

14 Aug, 2022

Data

Company Financials +
EAR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health4/6
Dividends0/6

EAR Stock Overview

Eargo, Inc., a medical device company, engages in enhancing the quality of life of people with hearing loss in the United States.

Eargo Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Eargo
Historical stock prices
Current Share PriceUS$1.13
52 Week HighUS$26.06
52 Week LowUS$0.67
Beta0
1 Month Change43.95%
3 Month Change-26.62%
1 Year Change-95.43%
3 Year Changen/a
5 Year Changen/a
Change since IPO-96.65%

Recent News & Updates

Aug 08

Eargo Non-GAAP EPS of -$0.78 misses by $0.55, revenue of $7.25M misses by $21.05M

Eargo press release (NASDAQ:EAR): Q2 Non-GAAP EPS of -$0.78 misses by $0.55. Revenue of $7.25M (-68.3% Y/Y) misses by $21.05M.

Jul 05

Eargo completes $100M senior secured convertible notes issuance

Medical device company Eargo (NASDAQ:EAR) completed the issuance of $100M senior secured convertible notes to Patient Square Capital on Jun. 28. ~$16.3M of the net proceeds was used to repay all existing third-party indebtedness and related pay-off expenses. The remaining proceeds are intended to be used for working capital purposes and to fund general business requirements. Source: Press Release

Shareholder Returns

EARUS Medical EquipmentUS Market
7D-8.1%1.9%3.2%
1Y-95.4%-19.1%-10.2%

Return vs Industry: EAR underperformed the US Medical Equipment industry which returned -19.1% over the past year.

Return vs Market: EAR underperformed the US Market which returned -10.2% over the past year.

Price Volatility

Is EAR's price volatile compared to industry and market?
EAR volatility
EAR Average Weekly Movement29.7%
Medical Equipment Industry Average Movement9.4%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: EAR is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 30% a week.

Volatility Over Time: EAR's weekly volatility has increased from 23% to 30% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2010215Christian Gormsenhttps://eargo.com

Eargo, Inc., a medical device company, engages in enhancing the quality of life of people with hearing loss in the United States. The company markets and sells hearing aids. It sells its products direct-to-consumer and through omni-channel.

Eargo Fundamentals Summary

How do Eargo's earnings and revenue compare to its market cap?
EAR fundamental statistics
Market CapUS$44.51m
Earnings (TTM)-US$187.90m
Revenue (TTM)US$3.61m

12.3x

P/S Ratio

-0.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EAR income statement (TTM)
RevenueUS$3.61m
Cost of RevenueUS$25.42m
Gross Profit-US$21.81m
Other ExpensesUS$166.09m
Earnings-US$187.90m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-4.77
Gross Margin-603.40%
Net Profit Margin-5,199.22%
Debt/Equity Ratio889.4%

How did EAR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 EAR?

Other financial metrics that can be useful for relative valuation.

EAR 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/Revenue12.4x
Enterprise Value/EBITDA-0.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does EAR's PS Ratio compare to its peers?

EAR PS Ratio vs Peers
The above table shows the PS ratio for EAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.9x
SONX Sonendo
1.2x34.9%US$43.4m
AFIB Acutus Medical
2.8x41.5%US$47.1m
IVC Invacare
0.05x3.5%US$38.3m
SCND Scientific Industries
3.7x52.8%US$41.3m
EAR Eargo
12.3x34.8%US$44.5m

Price-To-Sales vs Peers: EAR is expensive based on its Price-To-Sales Ratio (12.3x) compared to the peer average (1.9x).


Price to Earnings Ratio vs Industry

How does EAR's PE Ratio compare vs other companies in the US Medical Equipment Industry?

Price-To-Sales vs Industry: EAR is expensive based on its Price-To-Sales Ratio (12.3x) compared to the US Medical Equipment industry average (4.4x)


Price to Sales Ratio vs Fair Ratio

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

EAR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio12.3x
Fair PS Ratio0x

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


Share Price vs Fair Value

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

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

Significantly Below Fair Value: Insufficient data to calculate EAR'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.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


34.8%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if EAR's forecast earnings growth is above the savings rate (1.9%).

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

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

Revenue vs Market: EAR's revenue (34.8% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: EAR's revenue (34.8% 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 EAR's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Eargo 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


-47.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EAR is currently unprofitable.

Growing Profit Margin: EAR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EAR is unprofitable, and losses have increased over the past 5 years at a rate of 47.4% per year.

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

Earnings vs Industry: EAR is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (2.5%).


Return on Equity

High ROE: EAR has a negative Return on Equity (-1671.11%), as it is currently unprofitable.


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Financial Health

How is Eargo's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: EAR's short term assets ($132.8M) exceed its short term liabilities ($132.4M).

Long Term Liabilities: EAR's short term assets ($132.8M) exceed its long term liabilities ($6.4M).


Debt to Equity History and Analysis

Debt Level: EAR has more cash than its total debt.

Reducing Debt: Insufficient data to determine if EAR'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: EAR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: EAR has sufficient cash runway for 2 years if free cash flow continues to reduce at historical rates of 41.3% each year.


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Dividend

What is Eargo 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 EAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

Growing Dividend: Insufficient data to determine if EAR'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 EAR has not reported any payouts.


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Management

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

2.9yrs

Average management tenure


CEO

Christian Gormsen (45 yo)

6.17yrs

Tenure

US$5,539,997

Compensation

Mr. Christian Gormsen has been Chief Executive Officer and President at Eargo, Inc since June 2016 and its Director since November 2014. Mr. Gormsen served as Senior Vice President of Europe & Global Opera...


CEO Compensation Analysis

Compensation vs Market: Christian's total compensation ($USD5.54M) is above average for companies of similar size in the US market ($USD759.99K).

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


Leadership Team

Experienced Management: EAR's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: EAR's board of directors are considered experienced (3.4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Eargo, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Eargo, Inc.
  • Ticker: EAR
  • Exchange: NasdaqGS
  • Founded: 2010
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Implied Market Cap: US$44.506m
  • Shares outstanding: 39.39m
  • Website: https://eargo.com

Number of Employees


Location

  • Eargo, Inc.
  • 2665 North First Street
  • Suite 300
  • San Jose
  • California
  • 95134
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.