Inari Medical (NasdaqGS:NARI) - Share price, News & Analysis

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

NARI Stock Overview

Inari Medical, Inc., a medical device company, develops, manufactures, markets, and sells devices for the interventional treatment of venous diseases in the United States.

Rewards

Revenue is forecast to grow 15.42% per year

Risk Analysis

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year

Inari Medical Competitors

iRhythm Technologies

NasdaqGS:IRTC

US$4.5b

Integra LifeSciences Holdings

NasdaqGS:IART

US$4.7b

Omnicell

NasdaqGS:OMCL

US$4.8b

Tandem Diabetes Care

NasdaqGM:TNDM

US$3.8b

Price History & Performance

Summary of all time highs, changes and price drops for Inari Medical
Historical stock prices
Current Share Price	US$84.69
52 Week High	US$100.00
52 Week Low	US$50.50
Beta	1.45
1 Month Change	12.80%
3 Month Change	35.35%
1 Year Change	-10.72%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	99.22%

Recent News & Updates

Aug 03

Inari Medical stock falls as Q2 sees net loss; COO to helm company next year

Inari Medical (NASDAQ:NARI) stock fell ~6% post market after the company reported a net loss of -10.19M in Q2, compared to a net income of $4.07M in the prior year period. Inari said in a separate release that COO Drew Hykes will replace Bill Hoffman as CEO, effective Jan. 1, 2023. Q2 revenue grew +46% Y/Y to $92.74M. The medical device maker said the increase was driven by continued U.S. commercial expansion and new product introductions. Gross profit grew ~41% Y/Y to $82.4M. Gross margin declined to 88.8% in Q2, compared to 92.4% in Q2 2021 mainly due to the move to a larger production facility in the Q4 2021, the company said in its earnings release. Research and development expenses increased to $18.57M, compared to $11.63M in Q2 2021. The company said it ended Q2 with $330.5M in cash, cash equivalents and short-term investments. Outlook: Inari (NARI) said it was reaffirming its full year 2022 revenue outlook to be in the range of $360M to $370M. Consensus Revenue Estimate for 2022 is $364.60M. NARI -6.04% to $76.75 post-market Aug. 3

Shareholder Returns

	NARI	US Medical Equipment	US Market
7D	9.2%	2.4%	1.0%
1Y	-10.7%	-21.6%	-12.9%

Return vs Industry: NARI exceeded the US Medical Equipment industry which returned -21.6% over the past year.

Return vs Market: NARI exceeded the US Market which returned -12.8% over the past year.

Price Volatility

Is NARI's price volatile compared to industry and market?
NARI volatility
NARI Average Weekly Movement	8.5%
Medical Equipment Industry Average Movement	9.8%
Market Average Movement	7.9%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.2%

Stable Share Price: NARI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: NARI's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2011	800	Bill Hoffman	https://www.inarimedical.com

Inari Medical, Inc., a medical device company, develops, manufactures, markets, and sells devices for the interventional treatment of venous diseases in the United States. The company provides ClotTriever, a mechanical thrombectomy system, which is designed to core, capture, and remove large clots from large vessels, as well as for treatment of deep vein thrombosis; and FlowTriever, a large bore catheter-based aspiration and mechanical thrombectomy system, for treatment of pulmonary embolism. It also offers FlowSaver; FlowStasis, a large bore suture retention device designed to address various aspects of venous access site; and FlowTriever 2, a new disk shape designed to capture and remove wall adherent clot and shorten treatment.

Inari Medical Fundamentals Summary

How do Inari Medical's earnings and revenue compare to its market cap?
NARI fundamental statistics
Market Cap	US$4.52b
Earnings (TTM)	-US$15.01m
Revenue (TTM)	US$335.63m

13.5x

P/S Ratio

-301.2x

P/E Ratio

Is NARI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NARI income statement (TTM)
Revenue	US$335.63m
Cost of Revenue	US$35.63m
Gross Profit	US$300.00m
Other Expenses	US$315.01m
Earnings	-US$15.01m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.28
Gross Margin	89.38%
Net Profit Margin	-4.47%
Debt/Equity Ratio	0%

How did NARI perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is NARI 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 NARI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NARI. This is calculated by dividing NARI's market cap by their current preferred multiple.
What is NARI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$4.52b

NARI 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	12.6x
Enterprise Value/EBITDA	-6160.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

NARI PS Ratio vs Peers

The above table shows the PS ratio for NARI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	6x
IRTC iRhythm Technologies	12.3x	16.2%	US$4.5b
IART Integra LifeSciences Holdings	3x	4.4%	US$4.7b
OMCL Omnicell	3.8x	12.4%	US$4.8b
TNDM Tandem Diabetes Care	5x	15.0%	US$3.8b
NARI Inari Medical	13.5x	15.4%	US$4.5b

Price-To-Sales vs Peers: NARI is expensive based on its Price-To-Sales Ratio (13.5x) compared to the peer average (6x).

Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: NARI is expensive based on its Price-To-Sales Ratio (13.5x) compared to the US Medical Equipment industry average (4.1x)

Price to Sales Ratio vs Fair Ratio

What is NARI'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.

NARI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	13.5x
Fair PS Ratio	11.6x

Price-To-Sales vs Fair Ratio: NARI is expensive based on its Price-To-Sales Ratio (13.5x) compared to the estimated Fair Price-To-Sales Ratio (11.6x).

Share Price vs Fair Value

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

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

Significantly Below Fair Value: Insufficient data to calculate NARI'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: Target price is less than 20% higher than the current share price.

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Future Growth

How is Inari Medical forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

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

73.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NARI's revenue (15.4% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: NARI's revenue (15.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NARI's Return on Equity is forecast to be low in 3 years time (3.8%).

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Past Performance

How has Inari 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

23.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NARI is currently unprofitable.

Growing Profit Margin: NARI is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: NARI is unprofitable, but has reduced losses over the past 5 years at a rate of 23.5% per year.

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

Earnings vs Industry: NARI is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (2%).

Return on Equity

High ROE: NARI has a negative Return on Equity (-3.63%), as it is currently unprofitable.

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Financial Health

How is Inari Medical's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: NARI's short term assets ($411.3M) exceed its short term liabilities ($41.0M).

Long Term Liabilities: NARI's short term assets ($411.3M) exceed its long term liabilities ($29.5M).

Debt to Equity History and Analysis

Debt Level: NARI is debt free.

Reducing Debt: NARI had no debt 5 years ago.

Debt Coverage: NARI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NARI has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

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

Growing Dividend: Insufficient data to determine if NARI'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 NARI 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

Bill Hoffman (55 yo)

7.5yrs

Tenure

US$3,771,486

Compensation

Mr. William H. Hoffman, also known as Bill, is Advisory Board Member at Vensana Capital Management, LLC. He has been Chief Executive Officer, President and Director at Inari Medical, Inc. since February 20...

CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD3.77M) is below average for companies of similar size in the US market ($USD6.58M).

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

Leadership Team

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

Board Members

Experienced Board: NARI's board of directors are not considered experienced ( 2.8 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: NARI insiders have only sold shares 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 7.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/06 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31