Company Overview
AVITA Medical, Inc. operates as a therapeutic acute wound care company with a geographic footprint spanning the United States, Japan, the European Union, Australia, and the United Kingdom. The firm's core business focuses on the development and commercialization of the RECELL System, a specialized cell harvesting device engineered for the treatment of thermal burns and other acute wounds. This entity functions within the Healthcare sector, specifically the Medical Devices industry, where it leverages proprietary technology to address critical needs in acute wound management. With a market capitalization of $117.01M and annual revenue of $71.61M supported by a workforce of 226 employees, the company represents a mid-sized player in the specialized medical device space. These valuation and revenue figures indicate that AVITA Medical maintains a distinct position in the acute wound care niche, though its current scale reflects the capital-intensive nature of developing and commercializing advanced cellular therapies.
Financial Health
The company reported revenue of $71.61M for the trailing twelve months, yet it recorded a net income of $-48,587,000 and an EBITDA of $-40,240,000 during the same period. The substantial gap between the positive revenue of $71.61M and the negative net income reveals a cost structure characterized by significant operating expenses that exceed gross profits, resulting in a profit margin of -67.8%. Additionally, the operating margin stands at -59.1%, while the gross margin remains high at 82.1%, indicating that the company effectively prices its products but struggles to control overhead and research costs. Free cash flow for the trailing twelve months is $-18,330,750, which signals a lack of financial flexibility as the business consumes cash rather than generating it for reinvestment or debt reduction. On the balance sheet, cash holdings of $18.18M are significantly lower than the total debt of $46.05M, and the debt-to-equity ratio is N/A, suggesting a highly leveraged financial profile relative to its equity base. The current ratio is 0.57, a figure below 1.0 that indicates potential challenges in meeting short-term obligations with short-term assets. Return on Equity is N/A due to the negative equity position, while the return on assets is -39.1%, revealing that management is currently generating negative returns on the total asset base employed in operations.
Valuation Assessment
The P/E Ratio (TTM) is N/A due to losses, while the forward P/E is -19.07, implying that the market prices the stock based on anticipated future earnings rather than historical profitability. The price-to-book ratio is -7.01, which indicates a significant discount to book value and suggests the market does not assign a premium to the company's tangible assets. Alternative valuation metrics include a price-to-sales ratio of 1.63 and an EV/EBITDA of -3.60, suggesting that investors are valuing the firm primarily on its sales revenue rather than earnings power. Regarding price volatility, the stock has a 52-week high of $10.29 and a 52-week low of $3.22, meaning the current price sits at a level that requires calculation relative to this specific range to determine its position within the recent trading band. The beta value of 1.81 indicates that the stock's price volatility is substantially higher than that of the broader market, reflecting increased sensitivity to market movements.
Growth & Income
Revenue growth year-over-year is -4.3%, while earnings growth year-over-year is N/A, indicating that the company is currently shrinking in terms of top-line revenue and has not yet achieved positive earnings growth. Since the earnings growth rate is N/A, there is no evidence that earnings are growing faster than revenue; instead, the negative revenue growth suggests a contraction in the business's sales trajectory. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which means the firm retains all of its earnings rather than distributing them to shareholders. Consequently, the overall growth and income profile is defined by negative revenue expansion and a reliance on retained earnings to fund operations rather than providing income through dividends.