NasdaqGS:NTUS

Stock Analysis Report

Executive Summary

Natus Medical Incorporated provides neurology, newborn care, and hearing and balance assessment healthcare products and services worldwide.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

7.6%

NTUS

1.9%

US Medical Equipment

0.5%

US Market


1 Year Return

5.9%

NTUS

15.6%

US Medical Equipment

6.8%

US Market

Return vs Industry: NTUS underperformed the US Medical Equipment industry which returned 15.6% over the past year.

Return vs Market: NTUS matched the US Market which returned 6.8% over the past year.


Shareholder returns

NTUSIndustryMarket
7 Day7.6%1.9%0.5%
30 Day5.1%-2.1%-0.8%
90 Day23.5%-0.4%-0.9%
1 Year5.9%5.9%16.6%15.6%9.2%6.8%
3 Year-20.1%-20.1%72.2%67.0%45.6%36.2%
5 Year-0.6%-0.6%125.9%100.9%63.2%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.75x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NTUS ($32.86) is trading above our estimate of fair value ($17.57)

Significantly Below Fair Value: NTUS is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NTUS is good value based on its PB Ratio (2.8x) compared to the US Medical Equipment industry average (3.8x).


Next Steps

Future Growth

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

185.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NTUS's revenue (0.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: NTUS's revenue (0.6% 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 NTUS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Natus Medical performed over the past 5 years?

-55.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NTUS is unprofitable, and losses have increased over the past 5 years at a rate of -55.3% per year.

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

Earnings vs Industry: NTUS is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.2%).


Return on Equity

High ROE: NTUS has a negative Return on Equity (-10.71%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NTUS is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NTUS is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Natus Medical's financial position?


Financial Position Analysis

Short Term Liabilities: NTUS's short term assets ($265.2M) exceeds its short term liabilities ($137.7M)

Long Term Liabilities: NTUS's short term assets (265.2M) exceeds its long term liabilities (88.8M)


Debt to Equity History and Analysis

Debt Level: NTUS's debt to equity ratio (19.8%) is considered satisfactory

Reducing Debt: NTUS's debt to equity ratio has increased from 4.9% to 19.8% over the past 5 years.

Debt Coverage: NTUS's debt is well covered by operating cash flow (57.5%).

Interest Coverage: NTUS is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: NTUS has a low level of unsold assets or inventory.

Debt Coverage by Assets: NTUS's debt is covered by short term assets (assets are 3.333410x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Next Steps

Management

What is the CEO of Natus Medical's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Jonathan Kennedy (48yo)

1.3yrs

Tenure

US$3,571,661

Compensation

Mr. Jonathan A. Kennedy, CPA has been the President, Chief Executive Officer and a Director at Natus Medical Incorporated since July 11, 2018. Mr. Kennedy was the Chief Financial Officer at Natus Medical I ...


CEO Compensation Analysis

Compensation vs. Market: Jonathan has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

0.8yrs

Average Tenure

53yo

Average Age

Experienced Management: NTUS's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

61yo

Average Age

Experienced Board: NTUS's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: NTUS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$403,46602 Aug 19
Kenneth Ludlum
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,632
Max PriceUS$31.94
SellUS$103,74313 Jun 19
Kenneth Ludlum
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,250
Max PriceUS$24.41
SellUS$149,04005 Jun 19
Kenneth Ludlum
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$24.84
SellUS$197,49413 May 19
Kenneth Ludlum
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,515
Max PriceUS$26.28
SellUS$213,86002 May 19
Robert Gunst
EntityIndividual
Shares8,000
Max PriceUS$26.92
BuyUS$2,71811 Mar 19
Lisa Heine
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max PriceUS$27.18
SellUS$233,25105 Mar 19
Robert Gunst
EntityIndividual
Shares8,304
Max PriceUS$28.50
SellUS$930,50003 Dec 18
Kenneth Ludlum
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceUS$34.93
SellUS$494,71520 Nov 18
Robert Gunst
EntityIndividual
Shares14,750
Max PriceUS$33.54

Ownership Breakdown


Management Team

  • D. Chung (55yo)

    VP of Quality

    • Tenure: 0.8yrs
    • Compensation: US$636.18k
  • Austin Noll (52yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 0.8yrs
    • Compensation: US$984.55k
  • Jonathan Kennedy (48yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$3.57m
  • Lisa Paul (55yo)

    Chief People Officer & VP

    • Tenure: 0.4yrs
  • Benjamin Davies (53yo)

    Executive VP & CFO

    • Tenure: 1yrs
    • Compensation: US$2.36m
  • Bill Hill

    General Counsel

    • Tenure: 0.8yrs
  • Seán Langan

    Vice President Global Operations

    • Tenure: 0.8yrs
  • Ivan Pandiyan

    Vice President of Global Research & Development

    • Tenure: 0.8yrs

Board Members

  • Joshua Levine (61yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$192.49k
  • Tom Sullivan (55yo)

    Independent Director

    • Tenure: 0.7yrs
  • Ken Ludlum (65yo)

    Independent Director

    • Tenure: 16.9yrs
    • Compensation: US$261.99k
  • Alice Schroeder (62yo)

    Independent Director

    • Tenure: 0.7yrs
  • Barbara Paul (65yo)

    Independent Chairperson

    • Tenure: 1.8yrs
    • Compensation: US$278.99k
  • Jonathan Kennedy (48yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$3.57m
  • Lisa Heine (55yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$187.99k

Company Information

Natus Medical Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Natus Medical Incorporated
  • Ticker: NTUS
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$1.106b
  • Shares outstanding: 33.66m
  • Website: https://www.natus.com

Number of Employees


Location

  • Natus Medical Incorporated
  • 6701 Koll Center Parkway
  • Suite 120
  • Pleasanton
  • California
  • 94566
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTUSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2001
NM4DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2001

Biography

Natus Medical Incorporated provides neurology, newborn care, and hearing and balance assessment healthcare products and services worldwide. It offers products and services used for the screening, diagnosis ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:40
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.