Company Overview
Semler Scientific, Inc. operates within the healthcare sector, specifically focusing on the medical devices industry, where it provides specialized technology solutions designed to enhance the clinical effectiveness and efficiency of healthcare providers across the United States. The company's product portfolio includes QuantaFlo, a distinctive four-minute in-office blood flow test that allows medical professionals to utilize precise blood flow measurements for diagnostic purposes. This specialized business model is supported by a workforce of 79 employees, and the company holds a market capitalization of $311.11M. With annual revenue reaching $36.96M, these valuation and revenue figures indicate that Semler Scientific functions as a small-cap entity within the broader medical device landscape.
Financial Health
The company reported revenue of $36.96M for the trailing twelve months, accompanied by a net income of $48.34M and an EBITDA of -$5,020,000. The significant gap between positive net income and negative EBITDA reveals a complex cost structure where accounting expenses, likely driven by non-operating items or specific financial adjustments, are substantially higher than the earnings before interest, taxes, depreciation, and amortization. Free cash flow stands at -$33,146,500, which indicates that the company is currently burning cash rather than generating liquidity, thereby limiting its immediate financial flexibility for capital expenditures or expansion without external financing. Despite the negative operating margin of -72.0%, the gross margin is exceptionally high at 90.8%, suggesting that the cost of goods sold is a very small fraction of the total revenue generated from its medical device sales. Conversely, the profit margin is reported at 130.8%, a figure that mathematically results from the combination of high gross margins and significant non-operating income, creating a unique profitability profile that differs from standard operational performance. The balance sheet shows a cash position of $10.18M against total debt of $116.42M, while the debt-to-equity ratio is recorded at 25.32, indicating a highly leveraged financial structure. The current ratio is 1.97, which suggests that the company maintains sufficient short-term assets to cover its short-term liabilities, providing a layer of liquidity protection despite the high debt load. Return on equity is 17.7%, demonstrating that shareholders are receiving a significant return on their capital, whereas the return on assets is -1.0%, reflecting the impact of the heavy debt load on the overall asset efficiency.
Valuation Assessment
The trailing twelve-month P/E ratio is 3.93, while the forward P/E ratio is significantly elevated at 254.43. This stark difference between the two metrics implies that the market expects a dramatic shift in earnings trajectory, as the forward multiple is heavily influenced by the current period's net income which is inflated by non-operating gains relative to the negative EBITDA. The price-to-book ratio is 0.67, which indicates that the stock is trading at a discount relative to its book value, suggesting the market does not currently price a premium over the net asset value of the company. The price-to-sales ratio stands at 8.42, and the EV/EBITDA is -82.56, where these alternative valuation metrics suggest that traditional earnings-based valuation models are distorted by the company's current loss position in terms of operating earnings. The 52-week high is $54.40 and the 52-week low is $14.88, meaning the current price sits at a level that reflects a trading range influenced by recent market volatility and earnings surprises. The beta value is 1.32, which signifies that the stock exhibits higher price volatility relative to the broader market, moving more aggressively than the average equity in response to market fluctuations.
Growth & Income
Revenue growth year-over-year is -44.6%, while earnings growth year-over-year is 49.3%. These figures indicate that earnings are growing at a rate significantly faster than revenue, a phenomenon driven by the one-time net income factors rather than an expansion in the core operational scale of the business. The company does not pay a dividend, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning that all available earnings are reinvested into the business or used to service debt rather than being distributed to shareholders. This absence of dividend payments aligns with the company's current cash burn rate, as the firm prioritizes maintaining its operational capabilities and managing its high debt levels over income generation for investors. Overall, the growth and income profile presents a high-risk scenario where income is volatile and driven by accounting specifics rather than consistent operational cash generation, with no income stream provided through dividends.