One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Profound Medical Corp.
PROF · NCM · Healthcare · Medical Devices
Current price
$6.90
52-week range
$4.80 - $8.95
Market cap
$252.13M
Balance sheet
Healthy
-53.58x Concerning
Net cash $30.89M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Revenue grew 18.6% last year.
- Risk Return on equity was -73.5% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 4.1% (peer median: 13.1%).
- Risk Operating margin compressed from -443.1% to -445.7% over 3 years.
What this company does
Profound Medical Corp.
Profound Medical Corp. makes high-tech machines that use MRI scans and ultrasound to treat diseases like prostate cancer and uterine fibroids without surgery. Their money mainly comes from selling these machines and the services that go with them to hospitals and clinics. This is important because it shows they have a new way to treat patients that could become a big part of medical care.
How the company got here
Profound Medical was founded in 2008 with the goal of changing how diseases are treated. The company's journey began with technology developed at Sunnybrook Hospital in Toronto. Early funding came from Genesys Capital and the Business Development Bank of Canada. A significant turning point was the acquisition of Philips' Sonalleve MR-HIFU business in 2017, which expanded Profound's platform. The company has since focused on developing and commercializing its MRI-guided, incision-free therapeutic systems, aiming to offer less invasive and more precise treatment options compared to traditional methods. Profound Medical is a publicly traded company, listed on both the TSX and NASDAQ stock exchanges.
What it actually does
Profound Medical develops and markets medical devices that use a combination of MRI (magnetic resonance imaging), robotics, and focused ultrasound to treat diseased tissue without surgery. Think of it like a highly advanced, image-guided tool that allows doctors to pinpoint and treat specific areas of illness inside the body with great accuracy, all while minimizing damage to surrounding healthy tissue. This approach aims to improve patient outcomes and speed up recovery times compared to traditional surgical interventions.
TULSA-PRO System
The TULSA-PRO system is Profound Medical's main product, designed for treating prostate conditions, including cancer and benign prostatic hyperplasia (BPH). It uses MRI to guide a robotic device that delivers transurethral ultrasound energy to precisely ablate (destroy) diseased prostate tissue. This method allows doctors to customize the treatment to the specific area and size of the diseased tissue, while actively protecting important nearby structures like the urethra and rectum. This helps to preserve crucial functions such as urinary continence and sexual health, offering a less invasive alternative to surgery or radiation.
Sonalleve System
The Sonalleve system is another key technology from Profound Medical, which also uses MRI guidance and focused ultrasound. It's used for non-surgical treatments in areas like women's health and oncology. Specifically, Sonalleve treats uterine fibroids and adenomyosis, and provides pain relief for bone metastases. It can also be used for other benign tumors. Like TULSA-PRO, Sonalleve focuses on precise, incision-free ablation, aiming to offer patients a gentler treatment option with faster recovery and fewer side effects.
What management is betting on now
Profound Medical's management is focused on expanding the adoption and utilization of its TULSA-PRO system, particularly in the United States. They are working to increase the number of installed systems in hospitals and clinics, which they believe will lead to higher patient treatment rates and a growing stream of recurring revenue. The company is also investing in clinical data to support the effectiveness of its therapies and pursuing strategic partnerships to broaden its market reach. The goal is to establish Profound's technologies as mainstream treatment options, driving profitable growth and improving patient care worldwide.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$2.48M
Net income
$-9.54M
Diluted EPS
-0.26
Operating cash flow
$-11.34M
Free cash flow
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Revenue
$5.34M
Net income
$-7.05M
Diluted EPS
0.19
Operating cash flow
$-8.58M
Free cash flow
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Revenue
$5.98M
Net income
$-8.17M
Diluted EPS
0.27
Operating cash flow
$-6.57M
Free cash flow
$-6.74M
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Revenue
$5.29M
Net income
$-7.98M
Diluted EPS
0.26
Operating cash flow
$-9.61M
Free cash flow
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Revenue
$2.21M
Net income
$-15.70M
Diluted EPS
0.52
Operating cash flow
$-13.74M
Free cash flow
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Revenue
$2.62M
Net income
$-10.72M
Diluted EPS
0.36
Operating cash flow
$-8.28M
Free cash flow
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Revenue
$4.18M
Net income
$-4.95M
Diluted EPS
0.19
Operating cash flow
$-5.88M
Free cash flow
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Revenue
$2.83M
Net income
$-9.37M
Diluted EPS
0.38
Operating cash flow
$-6.83M
Free cash flow
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Is it cheap or expensive?
Fair value — vs current price $6.90
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $30.9M - more cash than debt. Interest coverage -53.6x.
Net debt
$-30.89M
Interest coverage
-53.58x
Profound Medical Corp.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
PROF
BASELINE
Profound Medical Corp.
Total debt $7.38M Interest coverage -53.58x This is the baseline the peer rows are being compared against.
Total debt $42.80M Interest coverage -8.50x Neither company has much profit cushion over interest right now.
Total debt $4.45M Interest coverage 3.42x This peer still has a real interest-payment cushion, while PROF does not.
Total debt $379.30M Interest coverage 2.02x This peer still has a real interest-payment cushion, while PROF does not.
Total debt $3.32M Interest coverage -1,289.53x Neither company has much profit cushion over interest right now.
Total debt $10.74M Interest coverage -8.26x Neither company has much profit cushion over interest right now.
What you should know
The case for and against PROF
1 Reward
3 Risks
Rewards
-
Revenue grew 18.6% last year.
Risks
-
Return on equity was -73.5% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 4.1% (peer median: 13.1%).
-
Operating margin compressed from -443.1% to -445.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-11.73x
P/B
5.06x
P/S
13.21x
EV/EBITDA
-6.34x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
71.8%
Operating margin
-445.7%
Net margin
-171.6%
ROE
-73.5%
ROA
-39.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.15x
Current ratio
6.46x
Quick ratio
5.25x
Total debt
$7.38M
Total cash
$38.27M
Growth
How the business has been compounding
Revenue TTM
$19.09M
Revenue 5Y CAGR
50.7%
EPS TTM
-0.99
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-36.10M
Free CF TTM
$-38.45M
FCF margin
-201.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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