NYSE:NVRO

Stock Analysis Report

Executive Summary

Nevro Corp., a medical device company, provides products for the patients suffering from chronic pain in the United States and internationally.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.

Risks

  • Nevro has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.08%

NVRO

1.1%

US Medical Equipment

-0.6%

US Market


1 Year Return

51.8%

NVRO

9.9%

US Medical Equipment

0.6%

US Market

NVRO outperformed the Medical Equipment industry which returned 9.9% over the past year.

NVRO outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

NVROIndustryMarket
7 Day-0.08%1.1%-0.6%
30 Day9.1%0.6%2.2%
90 Day40.4%2.9%1.1%
1 Year51.8%51.8%10.8%9.9%2.9%0.6%
3 Year-11.9%-11.9%70.1%64.9%44.6%35.2%
5 Yearn/a138.9%111.8%61.9%44.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Nevro undervalued based on future cash flows and its price relative to the stock market?

35%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Nevro's share price is below the future cash flow value, and at a moderate discount (> 20%).

Nevro's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Nevro is loss making, we can't compare its value to the US Medical Equipment industry average.

Nevro is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Nevro, we can't assess if its growth is good value.


Price Based on Value of Assets

Nevro is overvalued based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Nevro expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

39.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nevro's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

Nevro's earnings are expected to grow significantly at over 20% yearly.

Nevro's revenue growth is expected to exceed the United States of America market average.

Nevro's earnings growth is expected to exceed the United States of America market average.

Nevro's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Nevro will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Nevro performed over the past 5 years?

-9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Nevro does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Nevro's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Nevro's 1-year growth to the US Medical Equipment industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Nevro has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Nevro has efficiently used its assets last year compared to the US Medical Equipment industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Nevro improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Nevro's financial position?


Financial Position Analysis

Nevro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Nevro's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Nevro's level of debt (77.5%) compared to net worth is high (greater than 40%).

Unable to establish if Nevro's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.6x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Nevro has sufficient cash runway for more than 3 years based on current free cash flow.

Unable to confirm if Nevro has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Nevro's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Nevro's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Nevro has not reported any payouts.

Unable to verify if Nevro's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Nevro has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Nevro's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

D. Grossman (59yo)

0.5yrs

Tenure

0

Mr. D. Keith Grossman serves as a President, Chief Executive Officer and Director at Nevro Corp. since March 19, 2019 and as its Chairman of the Board since May 20, 2019. He is a Director of Alcon, Inc. He ...


Management Age and Tenure

2.5yrs

Average Tenure

58.5yo

Average Age

The tenure for the Nevro management team is about average.


Board Age and Tenure

2.5yrs

Average Tenure

62.5yo

Average Age

The average tenure for the Nevro board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$500,98110 Jun 19
Elizabeth Weatherman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares8,183
Max PriceUS$61.45
BuyUS$100,50007 Jun 19
Kevin O'Boyle
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,675
Max PriceUS$60.00

Ownership Breakdown


Management Team

  • Andrew Galligan (63yo)

    Chief Financial Officer

    • Tenure: 9.3yrs
    • Compensation: US$693.26k
  • D. Grossman (59yo)

    Chairman of the Board

    • Tenure: 0.5yrs
  • Doug Alleavitch (58yo)

    Vice President of Quality

    • Tenure: 4.4yrs
    • Compensation: US$1.16m
  • Lori Ciano

    Chief Human Resources Officer

    • Tenure: 0.3yrs
  • David Caraway (62yo)

    Chief Medical Officer

    • Tenure: 5.4yrs
  • Juliet Cunningham

    Vice President of Investor Relations

    • Tenure: 0.7yrs
  • Patrick Schmitz (59yo)

    Vice President of Operations

    • Tenure: 3.5yrs
    • Compensation: US$1.16m
  • Neeraj Teotia (44yo)

    Vice President of Marketing

    • Tenure: 3.3yrs
  • Kashif Rashid (45yo)

    General Counsel

    • Tenure: 1.8yrs
    • Compensation: US$1.87m
  • Michael Carter (47yo)

    Vice President of Global Sales

    • Tenure: 0.6yrs

Board Members

  • Brad Vale (66yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$337.94k
  • Frank Fischer (77yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$341.94k
  • Shawn McCormick (55yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$354.94k
  • Bess Weatherman (59yo)

    Director

    • Tenure: 0.5yrs
  • Wilf Jaeger (64yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$360.19k
  • D. Grossman (59yo)

    Chairman of the Board

    • Tenure: 0.5yrs
  • Michael DeMane (62yo)

    Lead Director

    • Tenure: 0.3yrs
    • Compensation: US$379.94k
  • Kevin O'Boyle (63yo)

    Director

    • Tenure: 0.5yrs

Company Information

Nevro Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nevro Corp.
  • Ticker: NVRO
  • Exchange: NYSE
  • Founded: 2006
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$2.777b
  • Shares outstanding: 30.89m
  • Website: https://www.nevro.com

Number of Employees


Location

  • Nevro Corp.
  • 1800 Bridge Parkway
  • Redwood City
  • California
  • 94065
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVRONYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2014
1N7DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2014

Biography

Nevro Corp., a medical device company, provides products for the patients suffering from chronic pain in the United States and internationally. The company develops and commercializes the Senza spinal cord ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 00:54
End of Day Share Price2019/09/20 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.