OTCPK:ESMC

Stock Analysis Report

Executive Summary

Escalon Medical Corp. develops, manufactures, markets, and distributes medical devices and pharmaceuticals in the area of ophthalmology in the United States and internationally.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.

Risks

  • Escalon Medical has significant price volatility in the past 3 months.
  • Escalon Medical is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-7.3%

OTCPK:ESMC

1.5%

US Medical Equipment

0.8%

US Market


1 Year Return

-44.4%

OTCPK:ESMC

9.7%

US Medical Equipment

1.9%

US Market

ESMC underperformed the Medical Equipment industry which returned 9.6% over the past year.

ESMC underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

ESMCIndustryMarket
7 Day-7.3%1.5%0.8%
30 Day15.0%0.7%3.4%
90 Day54.4%2.4%2.1%
1 Year-44.4%-44.4%10.6%9.7%4.2%1.9%
3 Year-78.6%-78.6%70.2%65.0%46.7%37.2%
5 Year-92.2%-92.2%136.0%109.1%62.3%44.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.68x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Escalon Medical to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Escalon Medical to establish if it is available at substantial discount.


Price Based on Earnings

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

Escalon Medical 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 Escalon Medical, we can't assess if its growth is good value.


Price Based on Value of Assets

Escalon Medical is good value based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Escalon Medical expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.1%

Forecasted Healthcare industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Escalon Medical has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Escalon Medical performed over the past 5 years?

28.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Escalon Medical does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

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

Unable to compare Escalon Medical'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 Escalon Medical 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 Escalon Medical 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 Escalon Medical 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 Escalon Medical's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Escalon Medical's level of debt (10.2%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Escalon Medical'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 19.7x 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.

Escalon Medical has sufficient cash runway for 1.4 years based on current free cash flow.

Escalon Medical has less than a year of cash runway if free cash flow continues to reduce at historical rates of -82.3% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

5.1yrs

Average board tenure


CEO

Rich DePiano (53yo)

6yrs

Tenure

US$194,222

Compensation

Mr. Richard J. DePiano, Jr., also known as Rich, has been the Chief Executive Officer, President and General Counsel of Escalon Medical Corp. since September 25, 2013, January 1, 2008 and December 28, 2006 ...


CEO Compensation Analysis

Rich's remuneration is lower than average for companies of similar size in United States of America.

Rich's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

5.1yrs

Average Tenure

52.5yo

Average Age

The tenure for the Escalon Medical board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Rich DePiano (53yo)

    President

    • Tenure: 6yrs
    • Compensation: US$194.22k
  • Mark Wallace (49yo)

    COO and Principal Financial & Accounting Officer

    • Tenure: 2.2yrs
    • Compensation: US$149.81k

Board Members

  • Richard DePiano (78yo)

    Chairman

    • Tenure: 22.5yrs
    • Compensation: US$137.98k
  • Lisa Napolitano (56yo)

    Independent Director

    • Tenure: 16.1yrs
    • Compensation: US$22.14k
  • Rich DePiano (53yo)

    President

    • Tenure: 6yrs
    • Compensation: US$194.22k
  • David Jacovini (43yo)

    Independent Director

    • Tenure: 1.6yrs
  • C. Trusk (52yo)

    Independent Director

    • Tenure: 3.9yrs
  • John Dogum (52yo)

    Independent Director

    • Tenure: 1.6yrs

Company Information

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


Key Information

  • Name: Escalon Medical Corp.
  • Ticker: ESMC
  • Exchange: OTCPK
  • Founded: 1987
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$1.031m
  • Shares outstanding: 7.42m
  • Website: https://www.escalonmedical.com

Number of Employees


Location

  • Escalon Medical Corp.
  • Building 100
  • 435 Devon Park Drive
  • Wayne
  • Pennsylvania
  • 19087
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESMCOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1992

Biography

Escalon Medical Corp. develops, manufactures, markets, and distributes medical devices and pharmaceuticals in the area of ophthalmology in the United States and internationally. It offers A-Scan, which pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:42
End of Day Share Price2019/09/13 00:00
Earnings2019/03/31
Annual Earnings2018/06/30


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.