Surmodics (NasdaqGS:SRDX) - Share price, News & Analysis

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

SRDX ($37.23) is trading above our estimate of [[fair value]] ($32.21)

SRDX fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

SRDX Stock Overview

Rewards

Revenue is forecast to grow 13.15% per year

Risk Analysis

No risks detected for SRDX from our risk checks.

Surmodics Competitors

Sight Sciences

NasdaqGS:SGHT

US$427.8m

Orthofix Medical

NasdaqGS:OFIX

US$468.7m

Nano-X Imaging

NasdaqGM:NNOX

US$594.8m

Cardiovascular Systems

NasdaqGS:CSII

US$597.5m

Price History & Performance

Summary of all time highs, changes and price drops for Surmodics
Historical stock prices
Current Share Price	US$37.23
52 Week High	US$62.27
52 Week Low	US$32.43
Beta	1.06
1 Month Change	-5.10%
3 Month Change	-16.49%
1 Year Change	-31.59%
3 Year Change	-9.46%
5 Year Change	33.92%
Change since IPO	816.43%

Recent News & Updates

May 03

Is It Too Late To Consider Buying Surmodics, Inc. (NASDAQ:SRDX)?

While Surmodics, Inc. ( NASDAQ:SRDX ) might not be the most widely known stock at the moment, it saw significant share...

Shareholder Returns

	SRDX	US Medical Equipment	US Market
7D	0.8%	3.4%	1.6%
1Y	-31.6%	-24.5%	-20.8%

Return vs Industry: SRDX underperformed the US Medical Equipment industry which returned -24.5% over the past year.

Return vs Market: SRDX underperformed the US Market which returned -20.8% over the past year.

Price Volatility

Is SRDX's price volatile compared to industry and market?
SRDX volatility
SRDX Average Weekly Movement	6.4%
Medical Equipment Industry Average Movement	10.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: SRDX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SRDX's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1979	389	Gary Maharaj	https://www.surmodics.com

Surmodics, Inc., together with its subsidiaries, provides surface modification technologies for intravascular medical devices, and chemical components for in vitro diagnostic immunoassay tests and microarrays in the United States and internationally. It operates in two segments, Medical Device and In Vitro Diagnostics (IVD). The Medical Device segment engages in the provision of surface modification coating technologies to enhance access, deliverability, and predictable deployment of medical devices; and drug-delivery coating technologies to provide site-specific drug-delivery from the surface of a medical device for coronary, peripheral, neuro-vascular and structural heart, and other markets, as well as design, development, and manufacturing of interventional medical devices, primarily balloons and catheters, including drug-coated balloons for peripheral arterial disease treatment and other applications.

Surmodics Fundamentals Summary

How do Surmodics's earnings and revenue compare to its market cap?
SRDX fundamental statistics
Market Cap	US$520.85m
Earnings (TTM)	-US$10.47m
Revenue (TTM)	US$96.95m

5.4x

P/S Ratio

-49.7x

P/E Ratio

Is SRDX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRDX income statement (TTM)
Revenue	US$96.95m
Cost of Revenue	US$69.92m
Gross Profit	US$27.03m
Other Expenses	US$37.50m
Earnings	-US$10.47m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.75
Gross Margin	27.88%
Net Profit Margin	-10.80%
Debt/Equity Ratio	7.5%

How did SRDX perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

1/6

Valuation Score 1/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SRDX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SRDX. This is calculated by dividing SRDX's market cap by their current preferred multiple.
What is SRDX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$520.85m

SRDX 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	5.3x
Enterprise Value/EBITDA	-105.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

SRDX PS Ratio vs Peers

The above table shows the PS ratio for SRDX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	50.1x
SGHT Sight Sciences	7.8x	36.0%	US$427.8m
OFIX Orthofix Medical	1x	6.0%	US$468.7m
NNOX Nano-X Imaging	189.1x	95.1%	US$594.8m
CSII Cardiovascular Systems	2.4x	8.9%	US$597.5m
SRDX Surmodics	5.4x	13.1%	US$520.8m

Forward PS

Price-To-Sales vs Peers: SRDX is good value based on its Price-To-Sales Ratio (5.4x) compared to the peer average (50.1x).

Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: SRDX is expensive based on its Price-To-Sales Ratio (5.4x) compared to the US Medical Equipment industry average (3.8x)

Price to Sales Ratio vs Fair Ratio

What is SRDX'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.

SRDX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	5.4x
Fair PS Ratio	1.4x

Price-To-Sales vs Fair Ratio: SRDX is expensive based on its Price-To-Sales Ratio (5.4x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).

Share Price vs Fair Value

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

Below Fair Value: SRDX ($37.23) is trading above our estimate of fair value ($32.21)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Surmodics forecast to perform in the next 1 to 3 years based on estimates from 4 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

108.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SRDX's revenue (13.1% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: SRDX's revenue (13.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SRDX's Return on Equity is forecast to be low in 3 years time (7.2%).

Discover growth companies

Past Performance

How has Surmodics 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

-12.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SRDX is currently unprofitable.

Growing Profit Margin: SRDX is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: SRDX is unprofitable, and losses have increased over the past 5 years at a rate of 12.5% per year.

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

Earnings vs Industry: SRDX is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (12.9%).

Return on Equity

High ROE: SRDX has a negative Return on Equity (-7.86%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Surmodics's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: SRDX's short term assets ($64.7M) exceed its short term liabilities ($28.4M).

Long Term Liabilities: SRDX's short term assets ($64.7M) exceed its long term liabilities ($22.6M).

Debt to Equity History and Analysis

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

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

Debt Coverage: SRDX's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if SRDX's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is Surmodics's 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
Future Dividend Coverage

Dividend Yield vs Market

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

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

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

Discover strong dividend paying companies

Management

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

4.1yrs

Average management tenure

CEO

Gary Maharaj (58 yo)

11.5yrs

Tenure

US$2,938,269

Compensation

Mr. Gary R. Maharaj has been the Chief Executive Officer and President at Surmodics, Inc. since December 27, 2010. Mr. Maharaj served as the Chief Executive Officer and President at Arizant Inc. from 2006...

CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD2.94M) is about average for companies of similar size in the US market ($USD2.86M).

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

Leadership Team

Experienced Management: SRDX's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: SRDX's board of directors are seasoned and experienced ( 11.5 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30