OTCPK:PRFM.F

Stock Analysis Report

Executive Summary

Profound Medical Corp. operates as a medical technology company focuses on magnetic resonance guided ablation procedures in Canada, Germany, and Finland.

Snowflake

Fundamentals

Exceptional growth potential with excellent balance sheet.

Risks

  • Profound Medical has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

PRFM.F

1.1%

US Medical Equipment

-0.6%

US Market


1 Year Return

40.6%

PRFM.F

9.9%

US Medical Equipment

0.6%

US Market

PRFM.F outperformed the Medical Equipment industry which returned 9.5% over the past year.

PRFM.F outperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

PRFM.FIndustryMarket
7 Day1.0%1.1%-0.6%
30 Day19.4%0.6%2.2%
90 Day35.1%2.9%1.1%
1 Year40.6%40.6%10.8%9.9%2.9%0.6%
3 Year-21.2%-21.2%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 Profound Medical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

Profound Medical's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

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

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


Price Based on Value of Assets

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


Next Steps

Future Growth

How is Profound Medical expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

59.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Profound Medical's revenue is expected to grow significantly at over 20% yearly.

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

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

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

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


Earnings per Share Growth Estimates


Future Return on Equity

Profound Medical is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Profound Medical performed over the past 5 years?

-12.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

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


Financial Position Analysis

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

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


Debt to Equity History and Analysis

Profound Medical's level of debt (65.4%) compared to net worth is high (greater than 40%).

Profound Medical had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.3x 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.

Profound Medical has sufficient cash runway for 1.1 years based on current free cash flow.

Profound Medical has sufficient cash runway for 1.3 years if free cash flow continues to grow at historical rates of 12.2% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

Unable to evaluate Profound 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 Profound Medical has not reported any payouts.

Unable to verify if Profound 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 Profound 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 Profound Medical's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average board tenure


CEO

Arun Menawat (64yo)

3.1yrs

Tenure

CA$855,665

Compensation

Dr. Arun Swarup Menawat, Ph.D., MBA, has been the Chief Executive Officer of Profound Medical Corp. since August 15, 2016. Dr. Menawat served as the Chief Executive Officer and President of Novadaq Technol ...


CEO Compensation Analysis

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

Arun's compensation has increased whilst company is loss making.


Board Age and Tenure

3.5yrs

Average Tenure

62yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCA$77,96104 Dec 18
Arun Menawat
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares153,700
Max PriceCA$0.52
BuyCA$16,15302 Oct 18
Aaron Davidson
EntityIndividual
Role
Chief Financial Officer
CFO & Senior VP of Corporate Development
Shares29,000
Max PriceCA$0.56
BuyCA$8,35502 Oct 18
Ian Heynen
EntityIndividual
Shares15,000
Max PriceCA$0.56
BuyCA$3,38801 Oct 18
Aaron Davidson
EntityIndividual
Role
Chief Financial Officer
CFO & Senior VP of Corporate Development
Shares6,000
Max PriceCA$0.56
BuyCA$76,59428 Sep 18
Arun Menawat
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares137,000
Max PriceCA$0.56
BuyCA$13,92528 Sep 18
Guruprit Singh
EntityIndividual
Shares25,000
Max PriceCA$0.56
BuyCA$8,35528 Sep 18
Rashed Dewan
EntityIndividual
Shares15,000
Max PriceCA$0.56

Ownership Breakdown


Management Team

  • Arun Menawat (64yo)

    CEO & Director

    • Tenure: 3.1yrs
    • Compensation: CA$855.67k
  • Aaron Davidson (51yo)

    CFO & Senior VP of Corporate Development

    • Tenure: 1.3yrs
    • Compensation: CA$1.23m
  • Stephen Kilmer

    Investor Relations

    • Tenure: 0yrs

Board Members

  • Art Rosenthal (72yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: CA$35.17k
  • Brian Ellacott (62yo)

    Independent Lead Director

    • Tenure: 0yrs
    • Compensation: CA$36.17k
  • Arun Menawat (64yo)

    CEO & Director

    • Tenure: 3.1yrs
    • Compensation: CA$855.67k
  • Ken Galbraith (56yo)

    Director

    • Tenure: 2.7yrs
    • Compensation: CA$47.59k
  • Jean-François Pariseau (49yo)

    Independent Director

    • Tenure: 4.3yrs
  • Eric Klein

    Member of Clinical Advisory Board

    • Tenure: 0yrs
  • Peter Albertsen

    Member of Clinical Advisory Board

    • Tenure: 0yrs
  • Scott Eggener

    Member of Clinical Advisory Board

    • Tenure: 0yrs
  • Adam Kibel

    Member of Clinical Advisory Board

    • Tenure: 0yrs
  • Aytekin Oto

    Member of Clinical Advisory Board

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: Profound Medical Corp.
  • Ticker: PRFM.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: CA$135.910m
  • Listing Market Cap: CA$102.480m
  • Shares outstanding: 117.16m
  • Website: https://www.profoundmedical.com

Number of Employees


Location

  • Profound Medical Corp.
  • 2400 Skymark Avenue
  • Unit 6
  • Mississauga
  • Ontario
  • L4W 5K5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRNTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2015
PRFM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2015

Biography

Profound Medical Corp. operates as a medical technology company focuses on magnetic resonance guided ablation procedures in Canada, Germany, and Finland. It is developing a treatment to ablate the prostate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 00:56
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.