Company Overview
Cardio Diagnostics Holdings, Inc. operates within the biotechnology industry, where it is dedicated to developing and commercializing epigenetics-based clinical tests designed specifically for the detection and risk assessment of cardiovascular disease. The company's core product offering includes the Epi+Gen CHD, a three-year symptomatic coronary heart disease risk assessment clinical blood test that targets significant CHD events such as heart attacks, alongside other initiatives like Precisio. As a small-cap entity, the company currently holds a market capitalization of $5.82M, supported by a revenue stream of $14,825 and a workforce comprising 15 employees. These valuation and revenue figures indicate that Cardio Diagnostics Holdings, Inc. is a micro-cap biotechnology firm with limited market penetration, suggesting that its current operations are primarily focused on research and development rather than large-scale commercial profitability.
Financial Health
The company reported a trailing twelve-month revenue of $14,825, yet this figure stands in stark contrast to its net income of $-6,498,167, revealing a severe cost structure where expenses drastically exceed all generated sales. Furthermore, the company posted an EBITDA of $-6,085,950, which, combined with free cash flow of $-3,809,743, indicates a substantial burn rate that severely limits financial flexibility and the ability to fund operations without external capital. The margin profile is equally telling; while the gross margin sits at 100.0%, implying no cost of goods sold, the operating margin is an anomalous -41159.6% and the profit margin is 0.0%, highlighting extreme inefficiencies in covering operating expenses relative to sales. On the liability side, the company holds $5.11M in cash against $695,619 in debt, resulting in a debt-to-equity ratio of 9.97, which suggests a highly leveraged balance sheet relative to its equity base despite the significant cash on hand. Liquidity is supported by a current ratio of 9.79, indicating that current assets are nearly ten times current liabilities, which provides a theoretical buffer for short-term obligations despite the negative earnings. Return metrics further illustrate the financial strain, with a return on equity of -78.6% and a return on assets of -44.1%, revealing that management has not yet generated positive returns on either shareholder capital or the total asset base.
Valuation Assessment
Valuation metrics for Cardio Diagnostics Holdings, Inc. present a complex picture, with a trailing P/E ratio listed as N/A and a forward P/E of -7.86, which implies that expected earnings are currently negative and that traditional earnings-based valuation methods are not applicable. The price-to-book ratio stands at 0.51, indicating that the market values the company at approximately half of its book value, which often suggests a deep discount or significant perceived risks in the asset base. Alternative valuation metrics such as the price-to-sales ratio of 392.27 and an EV/EBITDA of -0.23 suggest that the market is pricing the stock based on speculative future potential rather than current cash generation or sales performance. Regarding trading range, the stock has a 52-week high of $17.40 and a 52-week low of $0.97; without a specific current price provided in the facts, the precise percentage distance from the high or low cannot be calculated, but the wide range underscores the high volatility inherent in small-cap biotech stocks. The beta value of 2.23 indicates that the stock's price volatility is more than twice that of the broader market, meaning that price swings are significantly amplified compared to large-cap equities.
Growth & Income
Growth metrics show a revenue growth year-over-year of -21.2%, while earnings growth is N/A due to the lack of positive earnings history; this implies that the company is contracting in terms of sales rather than expanding its market share or revenue base. Since the company does not pay dividends, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, all available earnings are theoretically reinvested into growth initiatives, though the negative net income means there are no positive earnings to distribute. The overall growth and income profile is characterized by negative revenue expansion and a complete absence of dividend income, positioning the investment entirely on the potential for future operational turnaround or successful product commercialization. The combination of shrinking revenue and significant cash burn creates a high-risk environment where the primary hope for value creation lies in the eventual success of its epigenetics-based clinical tests.