Outset Medical, Inc. Fundamental Analysis (NASDAQ: OM)
Outset Medical, Inc. (NASDAQ: OM) shows weak financial fundamentals with a PE ratio of -1.04, profit margin of -63.65%, and ROE of -55.88%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -106.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OM's fundamental strength across five key dimensions:
Efficiency Score
WeakOM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOM trades at attractive valuation levels.
Growth Score
WeakOM faces weak or negative growth trends.
Financial Health Score
ExcellentOM maintains a strong and stable balance sheet.
Profitability Score
WeakOM struggles to sustain strong margins.
Key Financial Metrics
Is OM Expensive or Cheap?
P/E Ratio
OM trades at -1.04 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OM's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Outset Medical, Inc. at 0.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.16 times EBITDA. This is generally considered low.
How Well Does OM Make Money?
Net Profit Margin
For every $100 in sales, Outset Medical, Inc. keeps $-63.65 as profit after all expenses.
Operating Margin
Core operations generate -57.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-55.88 in profit for every $100 of shareholder equity.
ROA
Outset Medical, Inc. generates $-30.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Outset Medical, Inc. generates limited operating cash flow of $-33.81M, signaling weaker underlying cash strength.
Free Cash Flow
Outset Medical, Inc. generates weak or negative free cash flow of $-34.55M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.86 in free cash annually.
FCF Yield
OM converts -42.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.56
vs 25 benchmark
ROA
Return on assets percentage
-0.30
vs 25 benchmark
ROCE
Return on capital employed
-0.32
vs 25 benchmark
How OM Stacks Against Its Sector Peers
| Metric | OM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.04 | 29.15 | Better (Cheaper) |
| ROE | -55.88% | 492.00% | Weak |
| Net Margin | -63.65% | -11576.00% (disorted) | Weak |
| Debt/Equity | 0.91 | 0.79 | Neutral |
| Current Ratio | 6.29 | 5.18 | Strong Liquidity |
| ROA | -30.00% | -131.00% (disorted) | Weak |
OM outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Outset Medical, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation