ZYNEX INC (ZYXI)
US98986M1036 - Common Stock
We assign a fundamental rating of 7 out of 10 to ZYXI. ZYXI was compared to 193 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making ZYXI a very profitable company, without any liquidiy or solvency issues. ZYXI is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make ZYXI suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
ZYXI had positive earnings in the past year.
In the past year ZYXI had a positive cash flow from operations.
ZYXI had positive earnings in each of the past 5 years.
In the past 5 years ZYXI always reported a positive cash flow from operatings.
1.2 Ratios
ZYXI has a Return On Assets of 7.10%. This is amongst the best in the industry. ZYXI outperforms 86.98% of its industry peers.
Looking at the Return On Equity, with a value of 21.08%, ZYXI belongs to the top of the industry, outperforming 94.79% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.01%, ZYXI belongs to the top of the industry, outperforming 84.90% of the companies in the same industry.
ZYXI had an Average Return On Invested Capital over the past 3 years of 13.70%. This is significantly above the industry average of 8.51%.
The last Return On Invested Capital (7.01%) for ZYXI is well below the 3 year average (13.70%), which needs to be investigated, but indicates that ZYXI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 21.08% | ||
| ROIC | 7.01% |
ROA(3y)11.51%
ROA(5y)16.14%
ROE(3y)23.28%
ROE(5y)26.81%
ROIC(3y)13.7%
ROIC(5y)18.17%
1.3 Margins
ZYXI has a better Profit Margin (5.28%) than 77.60% of its industry peers.
In the last couple of years the Profit Margin of ZYXI has declined.
The Operating Margin of ZYXI (5.85%) is better than 71.88% of its industry peers.
In the last couple of years the Operating Margin of ZYXI has declined.
Looking at the Gross Margin, with a value of 79.38%, ZYXI belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
ZYXI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | 5.28% | ||
| GM | 79.38% |
OM growth 3Y-23.1%
OM growth 5Y-29.08%
PM growth 3Y-22.54%
PM growth 5Y-29.4%
GM growth 3Y0.1%
GM growth 5Y-0.45%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ZYXI is creating some value.
The number of shares outstanding for ZYXI has been reduced compared to 1 year ago.
ZYXI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ZYXI has a worse debt to assets ratio.
2.2 Solvency
ZYXI has an Altman-Z score of 4.81. This indicates that ZYXI is financially healthy and has little risk of bankruptcy at the moment.
ZYXI has a Altman-Z score of 4.81. This is in the better half of the industry: ZYXI outperforms 77.08% of its industry peers.
The Debt to FCF ratio of ZYXI is 3.52, which is a good value as it means it would take ZYXI, 3.52 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ZYXI (3.52) is better than 86.46% of its industry peers.
ZYXI has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
ZYXI has a Debt to Equity ratio of 1.26. This is amonst the worse of the industry: ZYXI underperforms 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 3.52 | ||
| Altman-Z | 4.81 |
ROIC/WACC0.73
WACC9.6%
2.3 Liquidity
A Current Ratio of 4.74 indicates that ZYXI has no problem at all paying its short term obligations.
ZYXI has a Current ratio of 4.74. This is in the better half of the industry: ZYXI outperforms 66.67% of its industry peers.
ZYXI has a Quick Ratio of 4.03. This indicates that ZYXI is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 4.03, ZYXI is doing good in the industry, outperforming 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.74 | ||
| Quick Ratio | 4.03 |
3. Growth
3.1 Past
ZYXI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
The Earnings Per Share has been growing by 10.79% on average over the past years. This is quite good.
The Revenue has grown by 16.54% in the past year. This is quite good.
ZYXI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 42.02% yearly.
EPS 1Y (TTM)0%
EPS 3Y21.48%
EPS 5Y10.79%
EPS growth Q2Q5%
Revenue 1Y (TTM)16.54%
Revenue growth 3Y32.02%
Revenue growth 5Y42.02%
Revenue growth Q2Q-3.12%
3.2 Future
ZYXI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.89% yearly.
Based on estimates for the next years, ZYXI will show a very strong growth in Revenue. The Revenue will grow by 21.60% on average per year.
EPS Next Y12.04%
EPS Next 2Y44.84%
EPS Next 3Y45.91%
EPS Next 5Y42.89%
Revenue Next Year18.73%
Revenue Next 2Y22.13%
Revenue Next 3Y21.88%
Revenue Next 5Y21.6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.00, ZYXI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ZYXI indicates a rather cheap valuation: ZYXI is cheaper than 81.25% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, ZYXI is valued at the same level.
ZYXI is valuated rather expensively with a Price/Forward Earnings ratio of 22.31.
Based on the Price/Forward Earnings ratio, ZYXI is valued cheaper than 82.81% of the companies in the same industry.
ZYXI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 22.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ZYXI is valued a bit cheaper than 77.60% of the companies in the same industry.
ZYXI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ZYXI is cheaper than 90.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.22 | ||
| EV/EBITDA | 24.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ZYXI has an outstanding profitability rating, which may justify a higher PE ratio.
ZYXI's earnings are expected to grow with 45.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.08
PEG (5Y)2.32
EPS Next 2Y44.84%
EPS Next 3Y45.91%
5. Dividend
5.1 Amount
ZYXI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ZYNEX INC
NASDAQ:ZYXI (5/3/2024, 7:00:02 PM)
After market: 11 0 (0%)11
-0.54 (-4.68%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap351.23M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25 | ||
| Fwd PE | 22.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.08
PEG (5Y)2.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.1% | ||
| ROE | 21.08% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.85% | ||
| PM (TTM) | 5.28% | ||
| GM | 79.38% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.74 | ||
| Quick Ratio | 4.03 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0%
EPS 3Y21.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.54%
Revenue growth 3Y32.02%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
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OCF growth 3Y
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