Company Overview
DarioHealth Corp. functions as a digital health company providing services both within the United States and internationally. The firm leverages a digital therapeutics platform and a suite of solutions to deliver personalized and dynamic interventions driven by data analytics and one-on-one coaching for conditions including diabetes, hypertension, weight management, and musculoskeletal issues. This entity operates within the Healthcare sector, specifically categorized under the Health Information Services industry, which implies a focus on leveraging technology to manage patient data and deliver clinical outcomes rather than traditional pharmaceutical or device manufacturing. The company's current market capitalization stands at $59.21M, supported by an annual revenue of $22.36M and an operational workforce of 160 employees. These valuation and revenue figures indicate that DarioHealth is a small-cap entity with a revenue base that suggests it is still in a phase of scaling operations or adjusting its business model, rather than being a mature, large-cap incumbent with established multi-billion dollar sales streams.
Financial Health
The company reported a revenue of $22.36M over the trailing twelve months, yet generated a net income of $-40,309,576 and an EBITDA of $-33,517,000. The substantial gap between the positive revenue and the deeply negative net income reveals a cost structure where operating expenses significantly exceed gross profit, resulting in a loss that is larger than the EBITDA figure suggests due to non-operating costs or specific accounting adjustments included in the net income calculation. Free cash flow stands at $-11,204,875, which indicates that the company is currently burning cash and lacks the immediate financial flexibility to fund operations without external capital injections or debt refinancing. Analyzing the margin profile, the gross margin is 64.1%, indicating that the company retains a significant portion of revenue after covering the direct costs of delivering its digital therapeutics. However, the operating margin is -163.7% and the profit margin is -186.6%, levels that indicate the company is operating at a severe structural loss where fixed costs and overhead are consuming more than the total revenue generated. On the balance sheet, the company holds $26.02M in cash against $31.75M in debt, resulting in a debt-to-equity ratio of 46.74, which characterizes a leveraged position where liabilities substantially outweigh equity. The current ratio of 3.76 suggests that the company possesses strong short-term liquidity, as it holds nearly four times the amount of current assets relative to its current liabilities. Furthermore, the return on equity is -59.6% and the return on assets is -20.0%, metrics that reveal management is currently destroying shareholder value and utilizing assets inefficiently to generate positive returns.
Valuation Assessment
The trailing P/E ratio is listed as N/A due to the lack of earnings, while the forward P/E is -18.64, a metric that typically implies negative earnings expectations or a need to reframe valuation using non-earnings multiples. The price-to-book ratio is 0.82, indicating that the market values the company at a discount to its book value, which often occurs in distressed situations or when the asset base is undervalued by the market. Alternative valuation metrics provide further context, with a price-to-sales ratio of 2.65 and an EV/EBITDA of -1.94, suggesting that the stock is priced based on revenue multiples rather than profitability, reflecting high risk or potential turnaround expectations. Regarding trading ranges, the 52-week high is $17.74 and the 52-week low is $5.93; without the specific current share price in the provided data, the precise percentage distance cannot be calculated, but the wide spread indicates significant price volatility over the past year. The beta value is 1.16, which means the stock is expected to be 16% more volatile than the broader market, reflecting higher sensitivity to market movements and sector-specific risks.
Growth & Income
The revenue growth year-over-year is -31.2%, while earnings growth is N/A due to the company reporting losses. This contraction in revenue indicates a decline in sales volume or pricing power, and since the company is already unprofitable, the inability to calculate earnings growth further highlights the challenges the business faces in stabilizing its bottom line. As the company does not pay dividends, with a dividend yield of N/A and a payout ratio of 0.0%, it is not returning cash to shareholders but is instead retaining all earnings to attempt to fund future growth or reduce its substantial debt load. The overall growth and income profile for DarioHealth Corp. is characterized by negative revenue momentum, a complete absence of dividend income, and a financial structure that relies entirely on capital markets or cash reserves to sustain operations.