NasdaqGS:SRDX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Surmodics, Inc., together with its subsidiaries, provides medical devices and in vitro diagnostic technologies to the healthcare industry in the United States and internationally. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.5%

SRDX

-3.3%

US Medical Equipment

-3.3%

US Market


1 Year Return

-14.4%

SRDX

13.7%

US Medical Equipment

10.9%

US Market

Return vs Industry: SRDX underperformed the US Medical Equipment industry which returned 14.7% over the past year.

Return vs Market: SRDX underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

SRDXIndustryMarket
7 Day1.5%-3.3%-3.3%
30 Day-16.8%-2.5%-5.7%
90 Day-4.0%12.2%8.2%
1 Year-14.4%-14.4%14.7%13.7%13.4%10.9%
3 Year23.9%23.9%69.0%64.7%34.9%25.9%
5 Year76.4%76.4%140.9%122.6%84.6%63.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

68.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SRDX ($38.54) is trading above our estimate of fair value ($23.63)

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


Price To Earnings Ratio

PE vs Industry: SRDX is poor value based on its PE Ratio (68.4x) compared to the US Medical Equipment industry average (49.6x).

PE vs Market: SRDX is poor value based on its PE Ratio (68.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SRDX is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: SRDX is overvalued based on its PB Ratio (4x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

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

42.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRDX's forecast earnings growth (42.7% per year) is above the savings rate (2.2%).

Earnings vs Market: SRDX's earnings (42.7% per year) are forecast to grow faster than the US market (23% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SRDX's revenue (9.9% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: SRDX's revenue (9.9% 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 (6.7%).


Next Steps

  • Explore growth companies in the Healthcare industry.

Past Performance

How has Surmodics performed over the past 5 years?

-28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRDX has a large one-off loss of $1.7M impacting its June 30 2020 financial results.

Growing Profit Margin: SRDX's current net profit margins (7.4%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: SRDX's earnings have declined by 28.5% per year over the past 5 years.

Accelerating Growth: SRDX's earnings growth over the past year (225.4%) exceeds its 5-year average (-28.5% per year).

Earnings vs Industry: SRDX earnings growth over the past year (225.4%) exceeded the Medical Equipment industry 1.8%.


Return on Equity

High ROE: SRDX's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is Surmodics's financial position?


Financial Position Analysis

Short Term Liabilities: SRDX's short term assets ($87.8M) exceed its short term liabilities ($15.6M).

Long Term Liabilities: SRDX's short term assets ($87.8M) exceed its long term liabilities ($20.3M).


Debt to Equity History and Analysis

Debt Level: SRDX is debt free.

Reducing Debt: SRDX has not had any debt for past 5 years.

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

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


Balance Sheet


Next Steps

Dividend

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


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.


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 SRDX'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?

2.3yrs

Average management tenure


CEO

Gary Maharaj (57 yo)

9.75yrs

Tenure

US$2,343,629

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 ($USD2.34M) is about average for companies of similar size in the US market ($USD2.02M).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gary Maharaj
CEO, President & Director9.75yrsUS$2.34m0.99%
$ 5.2m
Timothy Arens
Senior VP of Finance & Information Technology and CFO2.33yrsUS$816.56k0.38%
$ 2.0m
Teryl L. Sides
Senior VP of Product Development & Chief Marketing Officer1.83yrsUS$1.30m0.10%
$ 547.0k
Thomas Greaney
Chief Operating Officer of Medical Devices4.83yrsUS$847.13k0.22%
$ 1.2m
John Manders
Corporate Controller & Principal Accounting Officer2.33yrsno data0.017%
$ 90.1k
Gordon Weber
Senior VP of Legal0.33yrno data0.020%
$ 106.4k
Joseph Stich
Senior VP & GM of Human Resources - In Vitro Diagnostics0.42yrUS$696.13k0.38%
$ 2.0m
Charles Olson
Senior Vice President of Commercial & Business Development - Medical Devices15.92yrsUS$903.23k0.30%
$ 1.6m
Gregg Sutton
Vice President of Research & Development - Medical Devices4.67yrsUS$864.91k0.19%
$ 973.6k

2.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: SRDX's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Maharaj
CEO, President & Director9.75yrsUS$2.34m0.99%
$ 5.2m
Shawn McCormick
Independent Director4.75yrsUS$145.50k0%
$ 0
Ronald Kalich
Independent Director6.58yrsUS$156.00k0%
$ 0
David Dantzker
Independent Director9.67yrsUS$151.00k0.017%
$ 89.5k
Susan Knight
Independent Chairman of the Board5.67yrsUS$219.00k0.11%
$ 594.6k
José Bedoya
Independent Director18.67yrsUS$148.00k0.017%
$ 89.6k
Lisa Heine
Independent Director3.42yrsUS$144.00k0.014%
$ 73.2k

6.6yrs

Average Tenure

64yo

Average Age

Experienced Board: SRDX's board of directors are considered experienced (6.6 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.


Top Shareholders

Company Information

Surmodics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Surmodics, Inc.
  • Ticker: SRDX
  • Exchange: NasdaqGS
  • Founded: 1979
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$525.885m
  • Shares outstanding: 13.65m
  • Website: https://www.surmodics.com

Number of Employees


Location

  • Surmodics, Inc.
  • 9924 West 74th Street
  • Eden Prairie
  • Minnesota
  • 55344
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRDXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1998
SU6DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1998

Biography

Surmodics, Inc., together with its subsidiaries, provides medical devices and in vitro diagnostic technologies to the healthcare industry in the United States and internationally. The company operates thro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 05:37
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


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.