OTCPK:SOMN.F

Stock Analysis Report

Executive Summary

SomnoMed Limited, together with its subsidiaries, produces and sells devices for the oral treatment of sleep related disorders in Australia and internationally.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

SOMN.F

2.0%

US Medical Equipment

1.8%

US Market


1 Year Return

n/a

SOMN.F

13.3%

US Medical Equipment

7.3%

US Market

Return vs Industry: Insufficient data to determine how SOMN.F performed against the US Medical Equipment industry.

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


Shareholder returns

SOMN.FIndustryMarket
7 Day3.8%2.0%1.8%
30 Day24.4%-1.8%-0.7%
90 Day50.9%-0.5%0.06%
1 Yearn/a14.2%13.3%9.7%7.3%
3 Year-39.4%-39.4%70.5%65.3%46.3%36.9%
5 Year-16.4%-16.4%127.0%101.8%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

8.74x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: SOMN.F ($1.63) is trading above our estimate of fair value ($1.28)

Significantly Undervalued: SOMN.F is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: SOMN.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SOMN.F is overvalued based on its PB Ratio (8.7x) compared to the US Medical Equipment industry average (3.8x).


Next Steps

Future Growth

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

53.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOMN.F is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: SOMN.F is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: SOMN.F's loss is forecast to worsen by 0% next year.

Revenue vs Market: SOMN.F's revenue (11.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SOMN.F's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SOMN.F's Return on Equity is forecast to be low in 3 years time (19.7%).


Next Steps

Past Performance

How has SomnoMed performed over the past 5 years?

-57.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SOMN.F is unprofitable, and losses have increased over the past 5 years at a rate of -57.4% per year.

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

Earnings vs Industry: SOMN.F is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.2%).


Return on Equity

High ROE: SOMN.F has a negative Return on Equity (-0.22%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SOMN.F is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SOMN.F is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is SomnoMed's financial position?


Financial Position Analysis

Short Term Liabilities: SOMN.F's short term assets (A$20.2M) exceeds its short term liabilities (A$16.0M)

Long Term Liabilities: SOMN.F's short term assets (20.2M) exceeds its long term liabilities (884.7K)


Debt to Equity History and Analysis

Debt Level: SOMN.F's debt to equity ratio (16.9%) is considered satisfactory

Reducing Debt: Insufficient data to determine if SOMN.F's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: SOMN.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: SOMN.F's debt is covered by short term assets (assets are 6.701410x 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.

Stable Cash Runway: SOMN.F has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SOMN.F has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

0.22%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.2%forecastin3Years0.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if SOMN.F'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 SOMN.F'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 SomnoMed's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Neil Verdal-Austin 0

0.9yrs

Tenure

AU$471,884

Compensation

Mr. Neil Verdal-Austin has been the Chief Executive of SomnoMed Limited since November 19, 2018. Mr. Verdal-Austin served as Chief Financial Officer of SomnoMed Limited since October 15, 2008 until Novembe ...


CEO Compensation Analysis

Compensation vs. Market: Neil has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

3.2yrs

Average Tenure

Experienced Management: SOMN.F's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

7.7yrs

Average Tenure

Experienced Board: SOMN.F's board of directors are considered experienced (7.7 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.


Recent Insider Transactions

BuyAU$1,261,45023 Jul 19
Australian Ethical Investment Ltd
EntityCompany
Shares1,144,212
Max PriceAU$1.31
BuyAU$1,705,87922 May 19
FMR LLC
EntityCompany
Shares1,319,547
Max PriceAU$1.29
SellAU$33,29711 Mar 19
Australian Ethical Investment Ltd
EntityCompany
Shares23,000
Max PriceAU$1.45
BuyAU$1,006,72211 Mar 19
Australian Ethical Investment Ltd
EntityCompany
Shares802,496
Max PriceAU$1.25

Ownership Breakdown


Management Team

  • Peter Spencer (63yo)

    General Manager of Operations

    • Tenure: 0yrs
    • Compensation: AU$8.96k
  • Terry Flitcroft (60yo)

    Company Secretary

    • Tenure: 24.8yrs
    • Compensation: AU$10.56k
  • Chris Bedford

    Vice President of Global Production and Product Development

    • Tenure: 0yrs
    • Compensation: AU$128.07k
  • Neil Verdal-Austin

    Chief Executive Officer

    • Tenure: 0.9yrs
    • Compensation: AU$471.88k
  • Martin Weiland

    Executive Vice President of Sales and Marketing - Europe

    • Tenure: 0yrs
    • Compensation: AU$513.08k
  • Jim Evanger

    Chief Executive Officer of Renew Sleep Solutions

    • Tenure: 3.2yrs
    • Compensation: AU$630.86k
  • Kien Nguyen

    Executive President of North America

    • Tenure: 6.9yrs
    • Compensation: AU$658.71k
  • Jagdeep Bijwadia

    Chief Medical Officer

    • Tenure: 0yrs
  • Hervé Fiévet

    Chief Financial Officer

    • Tenure: 0.5yrs
    • Compensation: AU$267.23k

Board Members

  • Iven Klineberg

    Member of the Medical Advisory Board

    • Tenure: 0yrs
  • Jack Gerschman

    Member of the Medical Advisory Board

    • Tenure: 0yrs
  • Peter Cistulli

    Chairman of the Medical Advisory Board

    • Tenure: 0yrs
  • Peter Neustadt

    Non-Executive Chairman

    • Tenure: 7.3yrs
    • Compensation: AU$238.81k
  • Lee Ausburn

    Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: AU$65.56k
  • Hamish Corlett

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$65.56k
  • Rob Scherini

    Non-Executive Director

    • Tenure: 8.1yrs
    • Compensation: AU$65.56k

Company Information

SomnoMed Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SomnoMed Limited
  • Ticker: SOMN.F
  • Exchange: OTCPK
  • Founded: 2004
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: AU$155.754m
  • Listing Market Cap: AU$106.630m
  • Shares outstanding: 62.80m
  • Website: https://somnomed.com

Number of Employees


Location

  • SomnoMed Limited
  • 20 Clarke Street
  • Level 3
  • Crows Nest
  • New South Wales
  • 2065
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOMASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2004
SOMN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2004
SOMCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2004
RJVDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2004

Biography

SomnoMed Limited, together with its subsidiaries, produces and sells devices for the oral treatment of sleep related disorders in Australia and internationally. Its products include SomnoDent, an oral appl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:01
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.