OTCPK:RSLS

Stock Analysis Report

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Executive Summary

ReShape Lifesciences Inc., a medical device company, focuses on the design, development, and commercialization of technology to treat obesity and metabolic diseases. More Details


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has ReShape Lifesciences's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RSLS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.3%

RSLS

-2.0%

US Medical Equipment

-1.9%

US Market


1 Year Return

-36.8%

RSLS

14.7%

US Medical Equipment

13.1%

US Market

Return vs Industry: RSLS underperformed the US Medical Equipment industry which returned 14.6% over the past year.

Return vs Market: RSLS underperformed the US Market which returned 12.7% over the past year.


Shareholder returns

RSLSIndustryMarket
7 Day13.3%-2.0%-1.9%
30 Day25.0%0.2%-2.9%
90 Day6.3%13.1%8.2%
1 Year-36.8%-36.8%15.7%14.7%15.7%13.1%
3 Year-100.0%-100.0%71.6%67.2%38.4%29.1%
5 Year-100.0%-100.0%145.9%127.4%89.3%68.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is ReShape Lifesciences undervalued compared to its fair value and its price relative to the market?

1.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RSLS is good value based on its PB Ratio (1.5x) compared to the US Medical Equipment industry average (3.7x).


Next Steps

Future Growth

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

25.9%

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 ReShape Lifesciences 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 RSLS’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 theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access ReShape Lifesciences's filings and announcementshere.
  • Explore growth companies in the Healthcare industry.

Past Performance

How has ReShape Lifesciences performed over the past 5 years?

-22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RSLS is currently unprofitable.

Growing Profit Margin: RSLS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RSLS is unprofitable, and losses have increased over the past 5 years at a rate of 22.9% per year.

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

Earnings vs Industry: RSLS is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (-0.2%).


Return on Equity

High ROE: RSLS has a negative Return on Equity (-322.28%), as it is currently unprofitable.


Next Steps

Financial Health

How is ReShape Lifesciences's financial position?


Financial Position Analysis

Short Term Liabilities: RSLS's short term assets ($8.5M) do not cover its short term liabilities ($12.3M).

Long Term Liabilities: RSLS's short term assets ($8.5M) exceed its long term liabilities ($5.6M).


Debt to Equity History and Analysis

Debt Level: RSLS's debt to equity ratio (41.9%) is considered high.

Reducing Debt: RSLS's debt to equity ratio has reduced from 62.2% to 41.9% over the past 5 years.


Balance Sheet


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: RSLS has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RSLS has less than a year of cash runway if free cash flow continues to grow at historical rates of 1.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate RSLS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RSLS's dividends per share have been stable in the past.

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

1.4yrs

Average management tenure


CEO

Bart Bandy (59 yo)

1.42yrs

Tenure

Mr. Barton P. Bandy, also known as Bart, has been the President and Chief Executive Officer of ReShape Lifesciences Inc. since April 1, 2019 and has been its Director since May 8, 2019. Mr. Bandy served as ...


Leadership Team

NamePositionTenureCompensationOwnership
Barton Bandy
President1.42yrsno datano data
Mark Knudson
Co-Founder and Special Advisor to the CEOno dataUS$37.50kno data
Katherine Tweden
Co-Founderno dataUS$240.67kno data
Thomas Stankovich
Senior VP of Finance & CFO0.92yrno data0.083%
$ 19.7k
Vipul Shah
Senior Vice President of Operations and R&D2.58yrsno datano data
Rajesh Nihalani
Chief Technology Officer & Business Development3.33yrsno datano data
Dov Gal
VP of Regulatory & Clinical Affairs and Compliance Officerno datano datano data
Jody Dahlman
Director of Communicationsno datano datano data
Kevin Condrin
Senior Vice President of Commercial1.33yrsno datano data
Brendan O'Connell
VP of Finance & Corporate Controller1.08yrsno datano data

1.4yrs

Average Tenure

59yo

Average Age

Experienced Management: RSLS's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Barton Bandy
President1.42yrsno datano data
Dan Gladney
Chairman of the Board3.92yrsUS$3.01m0.000020%
$ 4.7
Gary Blackford
Independent Lead Director3.75yrsUS$89.83kno data
Philip Schauer
Member of Scientific Advisory Board2.25yrsno datano data
Scott Shikora
Member of Scientific Advisory Board2.25yrsUS$892.19kno data
Lori McDougal
Independent Director5.17yrsUS$69.73kno data
Jaime Ponce
Member of Scientific Advisory Board2.25yrsno datano data
John Morton
Member of Scientific Advisory Board2.25yrsno datano data
Natan Zundel
Member of Scientific Advisory Board2.25yrsno datano data
Arda Minocherhomjee
Independent Director2.08yrsUS$36.00kno data

2.3yrs

Average Tenure

62yo

Average Age

Experienced Board: RSLS's board of directors are not considered experienced ( 2.3 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: RSLS 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 substantially diluted in the past year, with total shares outstanding growing by 1889%.


Top Shareholders

Company Information

ReShape Lifesciences Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ReShape Lifesciences Inc.
  • Ticker: RSLS
  • Exchange: OTCPK
  • Founded: 2002
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$23.743m
  • Shares outstanding: 5.59m
  • Website: https://www.reshapelifesciences.com

Number of Employees


Location

  • ReShape Lifesciences Inc.
  • 1001 Calle Amanecer
  • San Clemente
  • California
  • 92673
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RSLSOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 2007

Biography

ReShape Lifesciences Inc., a medical device company, focuses on the design, development, and commercialization of technology to treat obesity and metabolic diseases. The company’s product portfolio include ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 06:19
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
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.