NasdaqGM:IRIX

Stock Analysis Report

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Executive Summary

IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmology.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

16.2%

IRIX

-0.8%

US Medical Equipment

0.7%

US Market


1 Year Return

-14.7%

IRIX

18.0%

US Medical Equipment

20.1%

US Market

Return vs Industry: IRIX underperformed the US Medical Equipment industry which returned 14.6% over the past year.

Return vs Market: IRIX underperformed the US Market which returned 17.1% over the past year.


Shareholder returns

IRIXIndustryMarket
7 Day16.2%-0.8%0.7%
30 Day15.6%9.1%6.4%
90 Day43.6%13.7%20.1%
1 Year-14.7%-14.7%19.0%18.0%22.6%20.1%
3 Year-71.7%-71.7%74.2%69.5%45.1%35.7%
5 Year-67.5%-67.5%122.6%105.3%79.7%60.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: IRIX 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 IRIX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IRIX is good value based on its PB Ratio (1.7x) compared to the US Medical Equipment industry average (3.8x).


Next Steps

Future Growth

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

68.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRIX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: IRIX's revenue (14% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: IRIX's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has IRIDEX performed over the past 5 years?

-31.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRIX is currently unprofitable.

Growing Profit Margin: IRIX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IRIX is unprofitable, and losses have increased over the past 5 years at a rate of 31.3% per year.

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

Earnings vs Industry: IRIX is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (1.2%).


Return on Equity

High ROE: IRIX has a negative Return on Equity (-41.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is IRIDEX's financial position?


Financial Position Analysis

Short Term Liabilities: IRIX's short term assets ($25.8M) exceed its short term liabilities ($7.6M).

Long Term Liabilities: IRIX's short term assets ($25.8M) exceed its long term liabilities ($2.9M).


Debt to Equity History and Analysis

Debt Level: IRIX's debt to equity ratio (13.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if IRIX'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: IRIX has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: IRIX has sufficient cash runway for 2 years if free cash flow continues to reduce at historical rates of 52.7% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

1.3yrs

Average management tenure


CEO

David Bruce (61 yo)

1.25yrs

Tenure

US$1,478,838

Compensation

Mr. David I. Bruce has been President and Chief Executive Officer at IRIDEX Corporation since May 21, 2019. Mr Bruce has been a Director of IRIDEX Corporation since April 13, 2018. He served as the Chief E ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD1.48M) is above average for companies of similar size in the US market ($USD589.03K).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
David Bruce
President1.25yrsUS$1.48m0.12%
$ 37.9k
Patrick Mercer
Chief Operating Officer1.92yrsUS$500.40k0.041%
$ 13.3k
James MacKaness
Interim Chief Financial Officer0.42yrUS$458.53kno data
Leigh Salvo
Head of Investor Relationsno datano datano data

1.3yrs

Average Tenure

56yo

Average Age

Experienced Management: IRIX's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Bruce
President1.25yrsUS$1.48m0.12%
$ 37.9k
Scott Shuda
Independent Director1.33yrsUS$99.99k0.036%
$ 11.9k
Robert Gunst
Independent Chairman0.83yrUS$96.15k0.088%
$ 28.9k
Kenneth Ludlum
Independent Director1.33yrsUS$106.41kno data
Robert Grove
Independent Director1.83yrsUS$100.56k0.37%
$ 122.8k
Doris Engibous
Independent Director0.33yrno datano data

1.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: IRIX's board of directors are not considered experienced ( 1.3 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: IRIX 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

IRIDEX Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IRIDEX Corporation
  • Ticker: IRIX
  • Exchange: NasdaqGM
  • Founded: 1989
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$32.913m
  • Shares outstanding: 13.89m
  • Website: https://www.iridex.com

Number of Employees


Location

  • IRIDEX Corporation
  • 1212 Terra Bella Avenue
  • Mountain View
  • California
  • 94043
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRIXNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDFeb 1996
IX4DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1996

Biography

IRIDEX Corporation, an ophthalmic medical technology company, provides therapeutic based laser systems, delivery devices, and consumable instrumentation to treat sight-threatening eye diseases in ophthalmo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 23:31
End of Day Share Price2020/08/12 00:00
Earnings2020/06/27
Annual Earnings2019/12/28


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.