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 Analysis

Mediocre balance sheet and slightly overvalued.


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

Stable Share Price: NVRO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

NVRO

-7.5%

US Medical Equipment

-7.6%

US Market


1 Year Return

201.7%

NVRO

10.7%

US Medical Equipment

10.2%

US Market

Return vs Industry: NVRO exceeded the US Medical Equipment industry which returned 10.7% over the past year.

Return vs Market: NVRO exceeded the US Market which returned 10.2% over the past year.


Shareholder returns

NVROIndustryMarket
7 Day-0.6%-7.5%-7.6%
30 Day2.4%-6.6%-4.5%
90 Day24.4%-2.3%-0.6%
1 Year201.7%201.7%11.6%10.7%12.5%10.2%
3 Year46.9%46.9%64.4%59.8%37.1%28.3%
5 Year223.1%223.1%98.6%77.8%60.8%43.2%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NVRO ($139) is trading below our estimate of fair value ($280.85)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NVRO is overvalued based on its PB Ratio (20.3x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

How is Nevro forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

58.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NVRO's revenue (11% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: NVRO's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NVRO is forecast to be unprofitable in 3 years.


Next Steps

  • Explore growth companies in the Healthcare industry.

Past Performance

How has Nevro performed over the past 5 years?

-14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NVRO is currently unprofitable.

Growing Profit Margin: NVRO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NVRO is unprofitable, and losses have increased over the past 5 years at a rate of -14.5% per year.

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

Earnings vs Industry: NVRO is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (1.4%).


Return on Equity

High ROE: NVRO has a negative Return on Equity (-47.92%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nevro's financial position?


Financial Position Analysis

Short Term Liabilities: NVRO's short term assets ($422.1M) exceed its short term liabilities ($70.6M).

Long Term Liabilities: NVRO's short term assets ($422.1M) exceed its long term liabilities ($182.7M).


Debt to Equity History and Analysis

Debt Level: NVRO's debt to equity ratio (72.5%) is considered high.

Reducing Debt: NVRO's debt to equity ratio has increased from 11.3% to 72.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NVRO's debt is covered by short term assets (assets are 2.7x 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.

Stable Cash Runway: NVRO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NVRO has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%4.0%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if NVRO'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 NVRO'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?

1.6yrs

Average management tenure


CEO

D. Grossman (59yo)

0.9yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Galligan
Chief Financial Officer9.8yrsUS$693.26k0.12% $5.2m
Patrick Schmitz
Vice President of Operations3.9yrsUS$1.16m0.023% $1.0m
Kashif Rashid
General Counsel2.2yrsUS$1.87m0.021% $949.6k
D. Grossman
Chairman of the Board0.9yrsno data0.052% $2.3m
Juliet Cunningham
Vice President of Investor Relations1.1yrsno datano data
Neeraj Teotia
Vice President of Marketing3.8yrsno datano data
Michael Carter
Vice President of Global Sales1yrsno datano data
Lori Ciano
Chief Human Resources Officer0.7yrsno datano data
David Caraway
Chief Medical Officer5.8yrsno datano data
Niamh Pellegrini
Chief Commercial Officer0.7yrsno datano data

1.6yrs

Average Tenure

55.5yo

Average Age

Experienced Management: NVRO's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
D. Grossman
Chairman of the Board0.9yrsno data0.052% $2.3m
Brad Vale
Independent Director4.9yrsUS$337.94k0.025% $1.1m
Frank Fischer
Independent Director7.3yrsUS$341.94k0.11% $5.0m
Shawn McCormick
Independent Director5.4yrsUS$354.94k0.015% $642.2k
Elizabeth Weatherman
Independent Director0.9yrsno data0.028% $1.3m
Wilfred Jaeger
Independent Director8.1yrsUS$360.19k0.10% $4.5m
Michael DeMane
Lead Director0.8yrsUS$379.94k1.68% $74.1m
Kevin O'Boyle
Independent Director0.9yrsno data0.0075% $331.7k
Karen Prange
Director0.2yrsno datano data

0.9yrs

Average Tenure

62yo

Average Age

Experienced Board: NVRO's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

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$4.423b
  • Shares outstanding: 31.82m
  • 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 stimulation system, an evidence-based neuromodulation platform for the treatment of chronic pain. Its solution for chronic pain also includes HF10 Therapy, which delivers neuromodulation solutions for treating chronic pain based on available clinical evidence. The company sells its products through its direct sales force, and a network of sales agents and independent distributors. Nevro Corp. was founded in 2006 and is headquartered in Redwood City, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 02:59
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.