NasdaqCM:ESTA

Stock Analysis Report

Establishment Labs Holdings

Executive Summary

Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery.


Snowflake Analysis

Mediocre balance sheet with limited growth.


Similar Companies

Share Price & News

How has Establishment Labs Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-15.0%

ESTA

0.08%

US Medical Equipment

-2.0%

US Market


1 Year Return

-52.9%

ESTA

-7.1%

US Medical Equipment

-15.1%

US Market

Return vs Industry: ESTA underperformed the US Medical Equipment industry which returned -7.1% over the past year.

Return vs Market: ESTA underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

ESTAIndustryMarket
7 Day-15.0%0.08%-2.0%
30 Day-38.5%-13.7%-19.7%
90 Day-58.7%-18.1%-23.2%
1 Year-52.9%-52.9%-6.3%-7.1%-13.4%-15.1%
3 Yearn/a42.4%38.5%10.9%3.7%
5 Yearn/a71.1%53.4%28.4%14.4%

Price Volatility Vs. Market

How volatile is Establishment Labs Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Establishment Labs Holdings undervalued compared to its fair value and its price relative to the market?

6.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ESTA is overvalued based on its PB Ratio (6.1x) compared to the US Medical Equipment industry average (2.9x).


Next Steps

Future Growth

How is Establishment Labs Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESTA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ESTA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ESTA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ESTA's revenue (25.5% per year) is forecast to grow faster than the US market (7.1% per year).

High Growth Revenue: ESTA's revenue (25.5% 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 ESTA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Establishment Labs Holdings performed over the past 5 years?

-80.8%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ESTA is currently unprofitable.

Growing Profit Margin: ESTA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ESTA's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: ESTA is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (1%).


Return on Equity

High ROE: ESTA has a negative Return on Equity (-96.3%), as it is currently unprofitable.


Next Steps

Financial Health

How is Establishment Labs Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ESTA's short term assets ($95.8M) exceed its short term liabilities ($23.2M).

Long Term Liabilities: ESTA's short term assets ($95.8M) exceed its long term liabilities ($53.7M).


Debt to Equity History and Analysis

Debt Level: ESTA's debt to equity ratio (121.5%) is considered high.

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


Balance Sheet

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

Debt Coverage by Assets: ESTA's debt is covered by short term assets (assets are 2x debt).


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: ESTA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ESTA has sufficient cash runway for 1 years if free cash flow continues to reduce at historical rates of -17.3% each year.


Next Steps

Dividend

What is Establishment Labs Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Juan Jose Chacon Quiros (47yo)

7.25s

Tenure

US$483,516

Compensation

Mr. Juan Jose Chacon Quiros Founded Establishment Labs, S.A. in 2004 and has been its Chief Executive Officer. Mr. Chacon Quiros has been Chief Executive Officer and Executive Director of Establishment Lab ...


CEO Compensation Analysis

Compensation vs Market: Juan Jose's total compensation ($USD483.52K) is below average for companies of similar size in the US market ($USD1.49M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Juan Jose Chacon Quiros
Founder7.25yrsUS$483.52k6.1% $16.7m
Renee M. Gaeta
Chief Financial Officer2.75yrsUS$374.21kno data
Eddie De Oliveira
Vice President of Salesno dataUS$429.33k0.039% $106.2k
Salvador Santos Dada
Chief Operating Officer4.17yrsUS$234.23k0.011% $29.8k
Roberto De Mezerville
Chief Technology Officer2.17yrsno data0.025% $67.0k
Jeremy Livianu
General Counsel2yrsno datano data

2.8yrs

Average Tenure

38yo

Average Age

Experienced Management: ESTA's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Juan Jose Chacon Quiros
Founder7.25yrsUS$483.52k6.1% $16.7m
Dennis Condon
Independent Director2.33yrsUS$21.41kno data
David Hung
Independent Director4.17yrsUS$19.59kno data
Lisa Colleran
Independent Director4.42yrsUS$24.60k0.18% $489.9k
Lisa Gersh
Director0.83yrno datano data
Nicholas Lewin
Chairman of the Board2.33yrsUS$4.53m3.33% $9.1m
Edward Schutter
Independent Director4.25yrsUS$19.36kno data
Marcos Sforza
Member of Medical Advisory Boardno datano datano data
Dennis Hammond
Member of Medical Advisory Boardno datano datano data
Niamh Corduff
Member of Medical Advisory Boardno datano datano data

4.2yrs

Average Tenure

61yo

Average Age

Experienced Board: ESTA's board of directors are considered experienced (4.2 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 18.4%.


Top Shareholders

Company Information

Establishment Labs Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Establishment Labs Holdings Inc.
  • Ticker: ESTA
  • Exchange: NasdaqCM
  • Founded: 2004
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: US$273.615m
  • Shares outstanding: 23.33m
  • Website: https://www.establishmentlabs.com

Number of Employees


Location

  • Establishment Labs Holdings Inc.
  • Buildings B15 and 25
  • Coyol Free Zone
  • Alajuela
  • Costa Rica

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESTANasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDJul 2018
3DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2018

Biography

Establishment Labs Holdings Inc., a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under Motiva Implants brand name. It also provides Divina 3D surgical simulation systems to plastic surgeons for use in pre-surgical patient consultations and planning; and distributes Puregraft line of products for autologous adipose tissue harvesting and redistribution. The company sells its products through exclusive distributors and direct sales force in 80 countries worldwide. Establishment Labs Holdings Inc. was founded in 2004 and is headquartered in Alajuela, Costa Rica. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 00:59
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.