NasdaqCM:ZYXI

Stock Analysis Report

Executive Summary

Zynex, Inc., through its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation.

Rewards

Trading at 46.1% below its fair value

Earnings are forecast to grow 28.86% per year

Risk Analysis

Highly volatile share price over past 3 months

Profit margins (22.6%) are lower than last year (33.3%)



Snowflake Analysis

Flawless balance sheet with high growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-7.1%

ZYXI

-0.6%

US Medical Equipment

-1.2%

US Market


1 Year Return

222.6%

ZYXI

21.1%

US Medical Equipment

15.5%

US Market

Return vs Industry: ZYXI exceeded the US Medical Equipment industry which returned 21.1% over the past year.

Return vs Market: ZYXI exceeded the US Market which returned 15.5% over the past year.


Shareholder returns

ZYXIIndustryMarket
7 Day-7.1%-0.6%-1.2%
30 Day12.5%5.3%1.4%
90 Day6.0%3.0%4.7%
1 Year231.3%222.6%22.2%21.1%18.0%15.5%
3 Year3060.4%2976.9%93.2%87.5%44.8%35.4%
5 Year8045.4%7830.2%121.8%97.7%67.3%48.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZYXI ($10) is trading below our estimate of fair value ($18.55)

Significantly Below Fair Value: ZYXI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ZYXI is good value based on its PE Ratio (35.3x) compared to the Medical Equipment industry average (46.4x).

PE vs Market: ZYXI is poor value based on its PE Ratio (35.3x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ZYXI is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: ZYXI is overvalued based on its PB Ratio (19.7x) compared to the US Medical Equipment industry average (4.2x).


Next Steps

Future Growth

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

28.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZYXI's forecast earnings growth (28.9% per year) is above the savings rate (1.7%).

Earnings vs Market: ZYXI's earnings (28.9% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: ZYXI's revenue (28.7% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: ZYXI's revenue (28.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Zynex performed over the past 5 years?

71.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZYXI has high quality earnings.

Growing Profit Margin: ZYXI's current net profit margins (22.6%) are lower than last year (33.3%).


Past Earnings Growth Analysis

Earnings Trend: ZYXI has become profitable over the past 5 years, growing earnings by 71.6% per year.

Accelerating Growth: ZYXI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ZYXI had negative earnings growth (-10.5%) over the past year, making it difficult to compare to the Medical Equipment industry average (28.3%).


Return on Equity

High ROE: ZYXI's Return on Equity (55.9%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zynex's financial position?


Financial Position Analysis

Short Term Liabilities: ZYXI's short term assets ($18.6M) exceed its short term liabilities ($4.5M).

Long Term Liabilities: ZYXI's short term assets ($18.6M) exceed its long term liabilities ($3.8M).


Debt to Equity History and Analysis

Debt Level: ZYXI is debt free.

Reducing Debt: ZYXI currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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

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


Balance Sheet

Inventory Level: ZYXI has a high level of physical assets or inventory.

Debt Coverage by Assets: ZYXI's debt is not covered by short term assets (assets are -2.0984522463733E+16x debt).


Next Steps

Dividend

What is Zynex'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

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if ZYXI'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 ZYXI'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 Zynex's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Thomas Sandgaard (60yo)

23.9yrs

Tenure

US$1,085,475

Compensation

Mr. Thomas Sandgaard founded Zynex, Inc. in 1996 and has been its Chairman, Chief Executive Officer and President since 1996. Mr. Sandgaard served as the Chief Financial Officer and Chief Accounting Office ...


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD1.09M) is below average for companies of similar size in the US market ($USD1.71M).

Compensation vs Earnings: Thomas's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.7yrs

Average Tenure

Experienced Management: ZYXI's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

1.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: ZYXI's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$1,038,00020 Aug 19
Thomas Sandgaard
EntityIndividual
Role
Chief Executive Officer
Founder
Shares100,000
Max PriceUS$10.38
SellUS$30,93812 Jun 19
Daniel Moorhead
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares3,750
Max PriceUS$8.25
SellUS$1,844,02507 Jun 19
Thomas Sandgaard
EntityIndividual
Role
Chief Executive Officer
Founder
Shares218,000
Max PriceUS$8.57
SellUS$179,15314 May 19
Daniel Moorhead
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares25,000
Max PriceUS$7.24
SellUS$211,46221 Mar 19
Thomas Sandgaard
EntityIndividual
Role
Chief Executive Officer
Founder
Shares48,008
Max PriceUS$4.41

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Thomas Sandgaard (60yo)

    Founder

    • Tenure: 23.9yrs
    • Compensation: US$1.09m
  • Chris Brown

    Vice President of Sales & Marketing

    • Tenure: 0.8yrs
  • Dan Moorhead (47yo)

    Chief Financial Officer

    • Tenure: 2.5yrs
    • Compensation: US$404.18k
  • Joachim Sandgaard

    Information Systems Manager

    • Tenure: 0yrs
    • Compensation: US$92.00k
  • Giuseppe Papandrea

    Chief Operating Officer

    • Tenure: 0.4yrs

Board Members

  • Barry Michaels (69yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$116.25k
  • Thomas Sandgaard (60yo)

    Founder

    • Tenure: 23.9yrs
    • Compensation: US$1.09m
  • Michael Cress (61yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$106.52k
  • Josh Disbrow (44yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$113.08k

Company Information

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


Key Information

  • Name: Zynex, Inc.
  • Ticker: ZYXI
  • Exchange: NasdaqCM
  • Founded: 1996
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$350.680m
  • Shares outstanding: 32.74m
  • Website: https://www.zynex.com

Number of Employees


Location

  • Zynex, Inc.
  • 9555 Maroon Circle
  • Englewood
  • Colorado
  • 80112
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZYXINasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDFeb 2004

Biography

Zynex, Inc., through its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stim ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 00:12
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
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.