OTCPK:FZMD

Stock Analysis Report

Executive Summary

Fuse Medical, Inc. distributes medical devices in the United States.

Rewards

PE ratio (7x) is below the US market (18.6x)

Became profitable this year

Risk Analysis

Revenue has declined by -10% over the past year

Debt is not well covered by operating cash flow

Does not have a meaningful market cap ($9M)

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Slightly overvalued with poor track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

FZMD

-0.8%

US Healthcare

0.6%

US Market


1 Year Return

n/a

FZMD

6.7%

US Healthcare

20.8%

US Market

Return vs Industry: Insufficient data to determine how FZMD performed against the US Healthcare industry.

Return vs Market: Insufficient data to determine how FZMD performed against the US Market.


Shareholder returns

FZMDIndustryMarket
7 Day0%-0.8%0.6%
30 Day-40.9%5.6%2.5%
90 Dayn/a15.3%4.9%
1 Yearn/a8.6%6.7%23.5%20.8%
3 Yearn/a47.0%40.4%46.5%37.0%
5 Yearn/a63.4%52.2%64.6%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

6.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate FZMD's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate FZMD's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: FZMD is good value based on its PE Ratio (7x) compared to the Healthcare industry average (21.8x).

PE vs Market: FZMD is good value based on its PE Ratio (7x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FZMD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FZMD has negative assets, so we can't compare its PB Ratio to the US Healthcare industry average.


Next Steps

Future Growth

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

14.6%

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 Fuse 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

  • Take a look at our analysis of FZMD’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Fuse Medical's filings and announcements here.
  • Explore growth companies in the Healthcare industry.

Past Performance

How has Fuse Medical performed over the past 5 years?

-10.0%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: FZMD has a large one-off gain of $5.7M impacting its September 30 2019 financial results.

Growing Profit Margin: FZMD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if FZMD's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: FZMD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FZMD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Healthcare industry (6.2%).


Return on Equity

High ROE: FZMD's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fuse Medical's financial position?


Financial Position Analysis

Short Term Liabilities: FZMD has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: FZMD has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: FZMD has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: FZMD's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: FZMD's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if FZMD's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: FZMD has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.7yrs

Average management tenure


CEO

Chris Reeg (55yo)

3yrs

Tenure

US$453,050

Compensation

Mr. Christopher C. Reeg, also known as Chris, has been Chief Executive Officer and Director of Fuse Medical, Inc. since December 19, 2016 and is its Secretary since January 18, 2018. He serves as the Presi ...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD453.05K) is about average for companies of similar size in the US market ($USD526.35K).

Compensation vs Earnings: Chris's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.7yrs

Average Tenure

55yo

Average Age

Experienced Management: FZMD's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

55yo

Average Age

Experienced Board: FZMD's board of directors are considered experienced (3 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26.7%.


Management Team

  • William McLaughlin (55yo)

    Senior VP

    • Tenure: 3yrs
    • Compensation: US$300.00k
  • Mark Brooks (53yo)

    Chairman of the Board & President

    • Tenure: 3yrs
    • Compensation: US$1.44m
  • Chris Reeg (55yo)

    CEO, Secretary & Director

    • Tenure: 3yrs
    • Compensation: US$453.05k

Board Members

  • William McLaughlin (55yo)

    Senior VP

    • Tenure: 3yrs
    • Compensation: US$300.00k
  • Mark Brooks (53yo)

    Chairman of the Board & President

    • Tenure: 3yrs
    • Compensation: US$1.44m
  • Chris Reeg (55yo)

    CEO, Secretary & Director

    • Tenure: 3yrs
    • Compensation: US$453.05k

Company Information

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


Key Information

  • Name: Fuse Medical, Inc.
  • Ticker: FZMD
  • Exchange: OTCPK
  • Founded:
  • Industry: Health Care Distributors
  • Sector: Healthcare
  • Market Cap: US$9.129m
  • Shares outstanding: 70.22m
  • Website: https://www.fusemedical.com

Location

  • Fuse Medical, Inc.
  • 1565 North Central Expressway
  • Suite 200
  • Richardson
  • Texas
  • 75080
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FZMDOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 2018

Biography

Fuse Medical, Inc. distributes medical devices in the United States. The company offers orthopedic implants, including internal and external fixation products; upper and lower extremity plating and total j ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 01:57
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.