Latest news with #SNWV
Yahoo
5 days ago
- Business
- Yahoo
SANUWAVE Health, Inc. (SNWV): A Bull Case Theory
We came across a bullish thesis son SANUWAVE Health, Inc. (SNWV) on @rationalformula on X(Twitter). In this article, we will summarize the bulls' thesis on SNWV. SANUWAVE Health, Inc. (SNWV)'s share was trading at $27.97 as of 28th May. SNWV's trailing P/E was 2.44 according to Yahoo Finance. An assembly line of medical devices being packed for distribution. SANUWAVE ($SNWV) presents a compelling microcap investment opportunity with a rapidly maturing turnaround, a razor/blade business model, and strong operational momentum. The company's flagship product, UltraMIST, is an FDA-cleared, non-contact ultrasound device for chronic wound treatment, reimbursed by CMS at $420 per use. With a growing installed base at over 900 sites, including the Mayo Clinic ICU, and over 60% of revenue now coming from high-margin consumables, SANUWAVE generates predictable, recurring income while physicians earn attractive margins on procedures. After facing existential challenges—over 1B shares outstanding, debt default, and no cash flow—hedge fund manager Morgan Frank took the reins as CEO in May 2023, initiating a full-scale turnaround. A 1-for-375 reverse split, strategic PIPE financing, a restructured sales org, and Nasdaq uplisting have laid the groundwork for sustainable growth. Financials have rapidly improved, with FY 2024 revenue growing 60% to $32.6M and adjusted EBITDA reaching $7.2M. The company guided to 57–61% YoY growth in Q1 2025 and expects 50% of incremental revenue to fall to the bottom line. At $30/share, the market cap is ~$255M with ~$25M in net debt, implying a ~$280M EV. Management projects ~$48–50M in 2025 revenue and ~$0.82 EPS, putting SNWV at ~36x 2025 earnings and just ~21x 2026 EPS. The company has a strong patent moat, sticky recurring revenue, and limited competition, with real near-term catalysts including litigation proceeds and insurer outreach. While CMS dependence and leverage are risks, execution thus far supports the investment case. SNWV is a profitable, fast-growing microcap with multi-year upside. For a deeper look into another standout stock in the medical devices sector, we recommend checking out our article on Medtronic plc (MDT) wherein we summarized a bullish thesis by Magnus Ofstad on Substack. SANUWAVE Health, Inc. (SNWV) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held SNWV at the end of the first quarter which was 0 in the previous quarter. While we acknowledge the risk and potential of SNWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SNWV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
SANUWAVE Health, Inc. (SNWV): A Bull Case Theory
We came across a bullish thesis son SANUWAVE Health, Inc. (SNWV) on @rationalformula on X(Twitter). In this article, we will summarize the bulls' thesis on SNWV. SANUWAVE Health, Inc. (SNWV)'s share was trading at $27.97 as of 28th May. SNWV's trailing P/E was 2.44 according to Yahoo Finance. An assembly line of medical devices being packed for distribution. SANUWAVE ($SNWV) presents a compelling microcap investment opportunity with a rapidly maturing turnaround, a razor/blade business model, and strong operational momentum. The company's flagship product, UltraMIST, is an FDA-cleared, non-contact ultrasound device for chronic wound treatment, reimbursed by CMS at $420 per use. With a growing installed base at over 900 sites, including the Mayo Clinic ICU, and over 60% of revenue now coming from high-margin consumables, SANUWAVE generates predictable, recurring income while physicians earn attractive margins on procedures. After facing existential challenges—over 1B shares outstanding, debt default, and no cash flow—hedge fund manager Morgan Frank took the reins as CEO in May 2023, initiating a full-scale turnaround. A 1-for-375 reverse split, strategic PIPE financing, a restructured sales org, and Nasdaq uplisting have laid the groundwork for sustainable growth. Financials have rapidly improved, with FY 2024 revenue growing 60% to $32.6M and adjusted EBITDA reaching $7.2M. The company guided to 57–61% YoY growth in Q1 2025 and expects 50% of incremental revenue to fall to the bottom line. At $30/share, the market cap is ~$255M with ~$25M in net debt, implying a ~$280M EV. Management projects ~$48–50M in 2025 revenue and ~$0.82 EPS, putting SNWV at ~36x 2025 earnings and just ~21x 2026 EPS. The company has a strong patent moat, sticky recurring revenue, and limited competition, with real near-term catalysts including litigation proceeds and insurer outreach. While CMS dependence and leverage are risks, execution thus far supports the investment case. SNWV is a profitable, fast-growing microcap with multi-year upside. For a deeper look into another standout stock in the medical devices sector, we recommend checking out our article on Medtronic plc (MDT) wherein we summarized a bullish thesis by Magnus Ofstad on Substack. SANUWAVE Health, Inc. (SNWV) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held SNWV at the end of the first quarter which was 0 in the previous quarter. While we acknowledge the risk and potential of SNWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SNWV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Business Insider
29-05-2025
- Business
- Business Insider
Sanuwave Health to be included in Russell 2000 Index
Sanuwave Health (SNWV) announced, as part of the 2025 Russell indexes reconstitution, the company's inclusion in the Russell 2000 Index. This will be effective after the U.S. market opens on June 30. In addition to the Russell 2000 Index, the company is also expected to be included in the broader Russell 3000 Index and in the Russell Microcap Index. Confident Investing Starts Here:
Yahoo
22-03-2025
- Business
- Yahoo
SANUWAVE Health Inc (SNWV) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic ...
Revenue: $10.3 million for Q4 2024, a 47% increase from $7 million in Q4 2023. Systems Sold: 135 systems in Q4 2024, a 71% increase from 79 systems in Q4 2023. Applicator Sales: $5.9 million in Q4 2024, up 68% from Q4 2023. Gross Margin: 77.9% for Q4 2024, up from 69.1% in Q4 2023. Operating Income: $2.5 million for Q4 2024, an improvement of $1.5 million year-over-year. Operating Expenses: $5.5 million for Q4 2024, up from $3.8 million in Q4 2023. Net Loss: $12.7 million for Q4 2024, compared to net income of $18.2 million in Q4 2023. Adjusted EBITDA: Positive $3.7 million for Q4 2024, up from $0.7 million in Q4 2023. Total Current Assets: $18.4 million as of December 31, 2024, up from $9.8 million as of December 31, 2023. Cash: $10.2 million as of December 31, 2024. Warning! GuruFocus has detected 12 Warning Signs with SNWV. Release Date: March 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SANUWAVE Health Inc (NASDAQ:SNWV) achieved a record revenue milestone of $10.3 million in Q4 2024, marking a 47% increase compared to the same period in 2023. The company experienced a 71% year-over-year growth in systems sold, with 135 systems sold in Q4 2024. Gross margins improved significantly to 77.9% in Q4 2024, up from 69.1% in the previous year, indicating strong operational efficiency. SANUWAVE Health Inc (NASDAQ:SNWV) successfully uplisted to Nasdaq, simplifying its capital structure and strengthening its balance sheet. The company reported positive adjusted EBITDA of $3.7 million for Q4 2024, a substantial improvement from $0.7 million in the same period last year. Operating expenses increased to $5.5 million in Q4 2024, up from $3.8 million in the same period last year, largely due to non-cash stock compensation expenses. The company reported a net loss of $12.7 million for Q4 2024, compared to a net income of $18.2 million in Q4 2023, primarily due to changes in the fair value of derivative liabilities. EBITDA for Q4 2024 was negative $9.7 million, indicating challenges in achieving profitability despite positive adjusted EBITDA. The company faces seasonality challenges, with Q1 typically being a slower period for medical device sales, impacting revenue predictability. SANUWAVE Health Inc (NASDAQ:SNWV) is still navigating the complexities of engaging with larger customers, which may lead to variability in order sizes and potential revenue lumpiness. Q: I noticed you guys hired a new Head of Sales back in January. Can you walk us through what's changing versus last year and how it's going so far? A: Sure, good question. We started 2024 with two salespeople and ended the year with nine. We will likely end Q3 with about nine, but three of them will be different from the nine we ended Q4 with. The change in strategy reflects our shift to a deeper, more consultative sale, focusing on building long-term partnerships. We hired Tim Warren, who was highly recommended and has a strong track record in sales growth. Q: You noted in your prepared comments that no customer represented more than 7% of revenue. Can you characterize the placements with respect to large, multi-order enterprise accounts or small orders? A: We sold a number of 1s and 2s in the quarter and saw substantial growth from existing customers. One significant customer ordered almost 20 systems. We plan for a base rate of smaller sales and view larger sales as upside. We're gearing up to handle larger orders by increasing our manufacturing capacity. Q: With respect to larger customers, is there any way to manage lumpy scenarios in any particular quarter? A: Our goal is to get systems in the field as they generate consumables. We plan for a base rate of business and view larger orders as upside. We aim to be able to respond quickly to large orders and are working to double our manufacturing capacity on short notice. Q: Can you provide some color on advancing additional confirmatory studies and new studies for UltraMIST? A: With improved financial footing, we're engaging with KOLs and researchers for new studies. Some customers have significant data repositories, and we expect papers and posters at SAWC. We're considering prospective studies, particularly on applications like split thickness donor sites, which showed promising results in past studies. Q: How are you planning to handle the seasonality in Q1 and your revenue guidance for 2025? A: We're guiding $8.4 million to $9 million in revenue for Q1, representing 45% to 55% growth from Q1 2024. Q1 is seasonally slower, but we expect a smaller drop compared to last year. For 2025, we're guiding $48 million to $50 million in revenues, representing a 50% year-on-year growth rate. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
