Company Overview
Femasys Inc. operates as a biomedical entity dedicated to developing therapeutic and diagnostic solutions designed to address unmet women's healthcare needs both within the United States and internationally. The company specifically offers products such as FemaSeed, an intratubal insemination solution, and FemVue, a companion diagnostic for fallopian tube assessment. This business falls within the Healthcare sector and the Medical Instruments & Supplies industry, positioning it to serve a niche market focused on reproductive health technologies. The company's scale is defined by a market capitalization of $28.70M, annual revenue of $2.06M, and an employee base of 69 individuals. These valuation and revenue figures indicate that the company operates as a small-cap entity with a relatively modest revenue footprint, suggesting it is in a growth or development phase rather than a mature market leadership position.
Financial Health
The company reported revenue of $2.06M over the trailing twelve months, yet recorded a net income of $-19,801,266 and an EBITDA of $-17,349,504. The substantial gap between the positive revenue and the significant negative net income reveals a cost structure where expenses and losses far exceed gross profits, indicating deep operational inefficiencies or heavy investment costs not yet recouped. Free cash flow stands at $-12,641,671, which signifies that the company is consuming cash reserves to fund its operations and growth initiatives rather than generating surplus liquidity. This negative cash flow limits immediate financial flexibility and suggests the firm relies on external capital to sustain its activities. The company holds $4.57M in cash against $8.43M in debt, resulting in a debt-to-equity ratio of 184.96, which characterizes the balance sheet as highly leveraged and reliant on equity financing to cover obligations. Despite the high leverage, the current ratio is 1.16, indicating that the company possesses sufficient current assets to cover its current liabilities, though with a narrow margin of safety. Return on Equity is reported at -376.2% and Return on Assets at -69.4%, metrics that reveal management has generated negative returns on the capital invested by shareholders and utilized in asset acquisition.
Valuation Assessment
The trailing twelve-month P/E ratio is N/A due to the lack of positive net income, while the forward P/E is listed as -1.22. The discrepancy between a non-existent trailing P/E and a negative forward P/E implies that the market is pricing in future earnings that are currently projected to be negative or that the stock is valued based on non-earnings metrics. The price-to-book ratio is 5.03, which indicates that the market values the company at five times its net asset book value, suggesting a significant premium assigned to its intangible assets or future growth potential despite current losses. Additionally, the price-to-sales ratio is 13.92 and the EV/EBITDA is -1.84; these alternative valuation metrics suggest that traditional earnings-based comparisons are less relevant, and investors are focusing on revenue generation or asset backing. The stock has traded between a 52-week low of $0.31 and a 52-week high of $1.63. Without a specific current price provided in the available facts to calculate the exact percentage, the valuation context is defined by this wide trading range which reflects high investor sentiment volatility. The beta is -2.53, a metric that indicates the stock's price volatility moves inversely to the broader market with a magnitude 2.53 times greater than the market average.
Growth & Income
Revenue growth year-over-year is 31.4%, while earnings growth is N/A due to the absence of positive earnings in the prior period. Since earnings are negative, the comparison of growth rates implies that the company is prioritizing revenue expansion over immediate profitability, a common strategy in early-stage medical device development. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%. Consequently, the company reinvests all available earnings and cash flow into research, development, and operational scaling rather than returning capital to shareholders. The overall growth and income profile is characterized by robust revenue expansion coupled with significant cash burn and a complete absence of dividend income for investors.