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BIOLASE, Inc.OTCPK:BIOL.Q Stock Report

Market Cap US$274.5k
Share Price
US$0.000001
My Fair Value
n/a
1Y-92.9%
7D9.6%
1D
Portfolio Value
​
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BIOLASE, Inc.

OTCPK:BIOL.Q Stock Report

Market Cap: US$274.5k

This company listing is no longer active

This company may still be operating, however this listing is no longer active. Find out why through their latest events.

BIOLASE (BIOL.Q) Stock Overview

Develops, manufactures, markets, and sells laser systems for dental practitioners and their patients in the United States and internationally. More details

BIOL.Q fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health0/6
Dividends0/6

Risk Analysis

Does not have a meaningful market cap ($274K)

Negative shareholders equity

Highly volatile share price over the past 3 months compared to the US market

Earnings have declined by 7.3% per year over past 5 years

+ 2 more risks

BIOL.Q Community Fair Values

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BIOLASE, Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for BIOLASE
Historical stock prices
Current Share PriceUS$0.0097
52 Week HighUS$0.26
52 Week LowUS$0.004
Beta0.82
1 Month Change4.28%
3 Month Change21.88%
1 Year Change-92.93%
3 Year Change-100.00%
5 Year Change-100.00%
Change since IPO-100.00%

Recent News & Updates

Recent updates

Seeking Alpha • Aug 31

Biolase partners with dental speciality programs across U.S.

Biolase (NASDAQ:BIOL) announced strategic plan to partner with postgraduate dental specialty programs throughout North America for dentists to adopt its Waterlase technology. "We believe investing in postgraduate programs will accelerate the adoption curve and be mutually beneficial. The residents will learn the benefits of all tissue laser technology in dentistry while providing the latest in patient care," the company said. The Waterlase dental laser offers faster procedures to less invasive treatment option.
Seeking Alpha • Jul 21

BIOLASE: Ongoing Operating Losses, Capital Raises To Sustain Liquidity

BIOLASE is a name we advocate investors to steer clear of in long-only, equity focused portfolios. The company displays numerous characteristics investors are agnostic to in FY22, particularly around profitability and equity beta. BIOL's earnings model sees it print ongoing operating losses and weak FCF conversion, requiring sustained capital injections for liquidity. We've priced the stock at $4 suggesting the market has it fairly valued. We are neutral on BIOLASE, Inc. (BIOL) shares and note the company is ill-positioned to deliver capital appreciation in the coming periods. BIOL's earnings model involves razor thin gross margins that feed minimal amounts of operating income to free cash below the bottom line. Hence, it prints a series of operating losses that require continuous external capital injection in order to maintain liquidity. A review of the company's products is best left for a separate review; hence, we will take a hard data approach to gauge the investment debate. We price BIOL at $4 per share, and note it displays numerous characteristics investors are shying away from in their positioning for FY23. We rate BIOL neutral. Exhibit 1. BIOL 6-month price action Data: Updata Market factors show divergence from equity premia Investors have finally wound back the high-beta trade of FY20/21' and are paying attention to quality and value factors once more. Fundamental momentum and earnings quality are more imperative than ever. Companies with proven market fit, strong economics, and above all, defensible business models have strengthened against benchmarks whilst reducing correlations in doing so. Later we demonstrate the weakness in BIOL's earnings model. However, it's abundantly clear BIOL displays a lack of the alternative premia investors are paying a premium for in FY22. Firstly, the stock has declined in relative strength against the benchmark sharply since April, as seen below. Meanwhile, after a small blip, its equity beta has remained substantially high at 1.2 indicating it is a high-beta play that will likely to have been punished this YTD. This much is true – BIOL has caught sellers all the way from $11, posting a 59% loss since January. Exhibit 2. BIOL has weakened against the benchmark as equity beta remains high – factors investors are agnostic to in FY22 Data: Updata Unsurprisingly, the stock has also weakened against the US medical devices and health care equipment sector since equity markets began to downturn in October 2021. As seen in Exhibit 3, BIOL now trades at a 12-month low relative to the sector. As investors step up in quality and resiliency, they will look to defensible characteristics and high return on capital amid the shifting rates regime. On this, BIOL lags and hence potentially explains the relative weakness to the traditionally defensive US medtech sector. Exhibit 3. BIOL continues to weaken against US medtech & health care equipment, as investors step up in quality in the space Data: Updata Fundamental Factors Don't Stack Up Q1 FY22 sales came in at ~$10 million, ~25% YoY growth. Performance was underlined by a 43% YoY gain to US laser systems and a 35% YoY gain to BIOLASE specific procedures. International turnover also grew 15% and have been steady for the last few quarters. On a marginal basis, the company lifted gross margin 13 percentage points to 47% – above pre-pandemic gross margin of 34%. This is still razor thin however, and leaves little headroom down the P&L for margin elasticity. On this, management notes it successfully passed costs through in Q1, printing operating expenses of ~$9 million, in line from last year. To achieve is guided 10% YoY revenue growth in FY22/23', BIOL has what it calls a 3-pronged strategy that's been in situ since 2021. Chief to the first 'prong' is specialist adoption of the laser technology. To this effect, BIOL formed an academy to market the dental lasers amongst orthodontists, endodontists and periodontists back in 2021. It did this to hopefully drive up the acceleration of new accounts, management said on the Q1 earnings call. Its second 'prong' is more of a speculative growth play at the US general practitioner dentist ("GPD") market, by our estimate. It notes there are ~150,000 of these generalists in the US, and makes some very generous assumptions around its ability to penetrate this segment. Per CEO John Beaver on the Q1 earnings call, "[i]f an additional 5% of GPDs adopted our laser in the US, it would generate $225 million in laser revenue, not including consumables," on the Q1 earnings call. Again, these are very generous assumptions around its addressable market that haven't yet begun to materialise. To get to $225 million from an additional 5% of GPD adoption, BIOL says it expanded its Waterlase Exclusive Trial program. This lets GPDs utilise the system in their office for ~45 days. Included is 2 days of in-person training and mentor support, all at no extra cost. Afterwards, the clinician is prompted to buy the laser. Firstly this is a timely and costly way of trying to convert GPDs. It takes longer than 1 30 day payment cycle and there's no incentive structure to use the device on trial. Moreover, conversion has been light on these events to date. It held 30 in FY21 and 12 so far this YTD. Each had 4–8 GPDs participate, management said, 9.5%–19% participation rate. The third 'prong' is driving the adoption of its lasers to corporate dentists. It has ongoing trials with 80% of the largest DSOs in the US, which targets new graduates as many new dentists are employed by the DSOs straight from dental school. BIOL hopes to educate them on using the lasers, and try and make lasers an "essential part of their practice moving forward". Hence, when out in practice, they might be drawn to BIOL lasers. Again, fraught with assumption, by estimate, and it relies on the premise these dentists will prefer BIOL lasers in the first place. There's no evidence to suggest this will be the case. In that vein, BIOL's profitability characteristics are an equity risk looking ahead. Investors have turned away from rewarding top-line growth in FY22 and are rewarding bottom-line fundamentals and profitability instead. Whilst it continues to build its top line at ~25% YoY, this doesn't pull through the P&L to earnings and FCF. As such, BIOL has printed a series of operating losses since FY15 to date, whilst realizing a negative FCF yield across this entire time span. Moreover, sales were extremely lumpy pre-Covid, and haven't grown back past these levels. Exhibit 4. Series of lumpy sales performance and operating losses sees weak FCF conversion
Seeking Alpha • Jul 01

BIOLASE amends senior secured term loan with SWK Funding

BIOLASE (NASDAQ:BIOL) has amended its senior secured term loan with SWK Funding LLC by extending the interest-only period of the loan by two quarters to November 2023 and reduces the minimum Consolidated Unencumbered Liquid Assets from $7,500,000 to $5,500,00. The company used a portion of the proceeds from its recent equity offering to prepay $1M of the outstanding loan balance. John Beaver, President and Chief Executive Officer of BIOLASE said, "This prepayment and amendment will result in lower interest expense while also increasing the Company's liquidity."
Seeking Alpha • Mar 21

BIOLASE: Bad News Across The Board - Sell

Company reports Q4 results in-line with preliminary numbers and provides a rather disappointing outlook. Profitability target delayed by another year. Muted growth in combination with the decision to keep pricing steady likely to result in another year of material cash usage. On the conference call, management affirmed its intent to conduct a reverse stock split before the May 23 deadline. With profitability delayed by another year and the likely requirement to raise additional capital in 2023, investors should consider selling existing positions ahead of the upcoming reverse stock split.
Analysis Article • Feb 24

Is BIOLASE (NASDAQ:BIOL) Weighed On By Its Debt Load?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Seeking Alpha • Jan 11

BIOLASE - Speculative Buy After Strong Preliminary Q4 Results

Company releases very strong preliminary Q4 top-line numbers with revenues now eclipsing pre-COVID numbers. Despite solid execution, shares have retreated by 80% from recent highs as investors remain wary of ongoing cash usage and a potential reverse stock split to regain Nasdaq listing compliance. Biolase continues to burn sizeable amounts of cash with adjusted EBITDA profitability not expected before Q4/FY2022. Shares are trading at bargain levels at just 0.7x EV/Revenue. Despite poor market sentiment, highly speculative investors should consider a rebound trade in the shares given management's solid execution, bargain valuation and expectations for EBITDA profitability at the end of the year.
Seeking Alpha • Nov 24

BIOLASE - Good News Across The Board But Still Only Suited For The Most Speculative Investors

Company continues to outperform expectations as sales and margins recover from last year's COVID-related setback. Despite solid execution, shares have retreated by more than 70% from recent highs as investors remain wary of a potential reverse stock split to regain Nasdaq listing compliance. Biolase continues to burn sizeable amounts of cash with adjusted EBITDA profitability not expected before Q4/FY2022. Stock looks cheap from a fundamental perspective, trading at just 1.25x EV/Revenue. On Tuesday, Biolase announced another 180-day Nasdaq extension and improved credit terms with its primary lender thus providing a major catalyst for the beaten down shares but only the most speculative investors/traders you consider scaling into the shares at current levels given ongoing cash burn and the likely requirement to execute a reverse stock split next year.

Shareholder Returns

BIOL.QUS Medical EquipmentUS Market
7D9.6%2.0%1.1%
1Y-92.9%-17.9%28.7%

Return vs Industry: BIOL.Q underperformed the US Medical Equipment industry which returned 2.4% over the past year.

Return vs Market: BIOL.Q underperformed the US Market which returned 6.9% over the past year.

Price Volatility

Is BIOL.Q's price volatile compared to industry and market?
BIOL.Q volatility
BIOL.Q Average Weekly Movement33.9%
Medical Equipment Industry Average Movement8.8%
Market Average Movement7.2%
10% most volatile stocks in US Market16.4%
10% least volatile stocks in US Market3.1%

Stable Share Price: BIOL.Q's share price has been volatile over the past 3 months compared to the US market.

Volatility Over Time: BIOL.Q's weekly volatility (34%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
1984157John Beaverwww.biolase.com

BIOLASE, Inc., together with its subsidiaries, develops, manufactures, markets, and sells laser systems for dental practitioners and their patients in the United States and internationally. Its dental laser systems allow dentists, periodontists, endodontists, pediatric dentists, oral surgeons, and other dental specialists to perform a range of minimally invasive dental procedures, including cosmetic, restorative, and complex surgical applications. The company offers Waterlase all-tissue dental laser systems for cutting soft and hard tissues; diode soft-tissue laser systems for soft tissue, hygiene, temporary pain relief, teeth whitening, and cosmetic procedures; and Epic Hygiene laser to manage non-surgical periodontitis and enhance clinical production.

BIOLASE, Inc. Fundamentals Summary

How do BIOLASE's earnings and revenue compare to its market cap?
BIOL.Q fundamental statistics
Market capUS$274.48k
Earnings (TTM)-US$15.97m
Revenue (TTM)US$46.03m
0.0x
P/S Ratio
0.0x
P/E Ratio

Is BIOL.Q overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
BIOL.Q income statement (TTM)
RevenueUS$46.03m
Cost of RevenueUS$30.18m
Gross ProfitUS$15.85m
Other ExpensesUS$31.82m
Earnings-US$15.97m

Last Reported Earnings

Sep 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)-0.44
Gross Margin34.44%
Net Profit Margin-34.69%
Debt/Equity Ratio-486.1%

How did BIOL.Q perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/03/12 15:04
End of Day Share Price 2025/03/12 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

BIOLASE, Inc. is covered by 8 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Edward WooAscendiant Capital Markets LLC
Bruce JacksonBenchmark Company
Kyle BauserColliers Securities