Company Overview
Myomo, Inc. operates as a wearable medical robotics company dedicated to the design, development, and production of myoelectric orthotics for individuals suffering from neuromuscular disorders within the United States, Germany, and international markets. The firm functions within the Healthcare sector, specifically targeting the Medical Devices industry, a space characterized by high regulatory standards and a focus on advanced therapeutic equipment. The company maintains a market capitalization of $26.83M, generated from annual revenue of $40.93M, while employing a workforce of 194 individuals to support its operations. These valuation and revenue figures indicate that Myomo, Inc. is a mid-sized entity with a relatively modest market footprint compared to large-cap medical technology peers, suggesting a niche focus rather than broad market dominance.
Financial Health
The company reported revenue of $40.93M for the trailing twelve months, accompanied by a net income of $-15,573,884 and an EBITDA of $-13,542,493, revealing a significant gap between top-line generation and bottom-line profitability that highlights substantial cost structures or operational losses. This negative net income relative to revenue demonstrates that the company is currently burning cash to fund its product development and market expansion strategies. Free cash flow stands at $-11,058,699, which indicates a lack of immediate financial flexibility to fund operations solely through internal cash generation without relying on external capital markets. The gross margin is reported at 65.7%, suggesting a high value proposition for the MyoPro products before accounting for operating expenses, while the operating margin of -24.4% and profit margin of -38.1% reflect the heavy burden of overhead costs and the current inability to convert revenue into operating profit. On the balance sheet, total cash of $18.39M is slightly less than total debt of $19.38M, resulting in a debt-to-equity ratio of 169.97, which characterizes the financial structure as highly leveraged given the negative equity position implied by the high debt load. However, the current ratio of 3.30 indicates strong short-term liquidity, suggesting the company possesses sufficient current assets to cover its current liabilities multiple times over. Return on Equity is -86.2% and Return on Assets is -22.3%, metrics that reveal management has not yet achieved profitability and that capital deployed has generated negative returns on both equity and asset bases.
Valuation Assessment
The valuation metrics present a complex picture, with a P/E Ratio (TTM) listed as N/A due to negative earnings, while the Forward P/E is -2.65, implying that future earnings are expected to be negative or that the market is pricing in significant downside risk relative to current book value. The Price to Book ratio is 2.35, indicating that the market values the company at more than double its book value despite the lack of current earnings, which may reflect intangible assets or growth potential not captured on the balance sheet. Alternative valuation metrics show a Price to Sales ratio of 0.66 and an EV/EBITDA of -2.06, suggesting the market is willing to pay a fraction of sales for the company but acknowledges the negative earnings power. The stock has traded between a 52-Week High of $5.62 and a 52-Week Low of $0.63, meaning the current price sits somewhere within this wide range, reflecting high volatility typical of small-cap biotech or medical device firms. The Beta of 1.13 indicates that the stock price is approximately 13% more volatile than the broader market, exposing investors to higher systemic risk during market fluctuations.
Growth & Income
Revenue growth year-over-year is -5.9%, while earnings growth is N/A due to the absence of positive earnings, indicating that the company is contracting in terms of top-line revenue and has not yet reached a stage of profitable expansion. The decline in revenue suggests that the company is currently facing headwinds in sales or is in an early stage of market penetration where growth has not yet materialized. As the company does not pay dividends, evidenced by a Dividend Yield of N/A and a Payout Ratio of 0.0%, it retains all earnings, or rather, the lack thereof, to reinvest into growth initiatives rather than providing income to shareholders. The overall growth and income profile is characterized by negative revenue momentum and a complete absence of dividend income, positioning the company as a speculative growth play reliant on future profitability rather than current cash flow or shareholder distributions.