Fundamentals snapshot

SANUWAVE Health, Inc.

SNWV · NGM · Healthcare · Medical Devices

Current price

$4.50

52-week range

$3.92 - $40.87

Market cap

$38.71M

One-glance verdict

Within fair range

$3.44 our estimate vs market $4.50

Balance sheet

Distressed

0.79x Concerning

Net debt $11.33M. Interest coverage shows how many times profit covers the interest bill.

What stands out

1 Reward 0 Risks

1 rewards · 0 risks

Reward Free cash flow was positive in 2/10 years.

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What this company does

SANUWAVE Health, Inc.

SANUWAVE Health makes a medical device called the UltraMist system that uses special sound waves and a gentle mist to help heal difficult wounds without touching the skin or causing pain. The company makes money by selling this unique wound-care technology to hospitals and clinics. This matters because it offers a non-painful treatment option for patients with injuries that are slow to heal on their own.

How the company got here

SANUWAVE Health was founded in 2004 to develop medical devices that use energy, like shockwaves, to help the body heal itself. A major turning point was in 2017 when its dermaPACE System received FDA clearance to treat diabetic foot ulcers. In 2020, the company acquired the UltraMIST System, which uses a different type of energy—ultrasound—for wound care. Recently, the company went through a significant financial reorganization to simplify its structure and listed on the NASDAQ exchange to attract more investors. The current CEO took over in 2023 to steer the company through financial challenges and has focused the company's efforts primarily on the UltraMIST product line.

What it actually does

SANUWAVE Health creates and sells medical devices that help heal difficult wounds, like those some people with diabetes get on their feet. Instead of just covering the wound, their machines use focused sound waves or ultrasound energy to stimulate the body's natural repair and regeneration processes deep within the tissue. The goal is to help wounds heal faster that are not getting better with standard treatments. Their main products are used by healthcare professionals in hospitals and wound care centers.

UltraMIST System

This is the company's main business and makes up almost all of its revenue (the money it brings in from sales). The UltraMIST system is a machine that uses low-frequency ultrasound, which is a type of sound wave you can't hear, delivered through a gentle saline mist to clean and treat wounds without touching them. The company operates on a 'razor-and-blade' model: it sells the main UltraMIST machine to a hospital or clinic, and then for every single treatment, the provider must use a new, disposable applicator, which they buy from SANUWAVE. This creates a steady, recurring stream of sales from the disposable parts after the initial machine is sold.

What management is betting on now

Management is focused almost entirely on growing the sales of its UltraMIST system. They recently discontinued other product lines to concentrate resources on this main business. A key part of their strategy is to expand their network of resellers and distributors (other companies that sell their product for them) to get the UltraMIST system into more hospitals and clinics faster. They are also taking advantage of a recent change in government reimbursement (how much Medicare and Medicaid will pay for a procedure) that has made competing wound care products much less profitable for doctors, creating an opportunity for UltraMIST to become a more attractive option.

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.

Free cash flow by quarter (oldest to newest)

FY2024 Q3 $1.23M FY2024 Q4 $505.00K FY2025 Q1 $-1.68M FY2025 Q2 $-166.00K FY2025 Q3 $556.00K FY2025 Q4 $3.22M FY2026 Q1 $374.00K FY2026 Q2 $91.00K

Revenue $9.74M

Net income $-682.00K

Diluted EPS -0.08

Operating cash flow $425.00K

Free cash flow $91.00K

Revenue $9.62M

Net income $-1.44M

Diluted EPS -0.17

Operating cash flow $397.00K

Free cash flow $374.00K

Revenue $13.09M

Net income $6.11M

Diluted EPS 0.60

Operating cash flow $3.32M

Free cash flow $3.22M

Revenue $11.45M

Net income $10.32M

Diluted EPS 0.46

Operating cash flow $1.08M

Free cash flow $556.00K

Revenue $10.16M

Net income $1.05M

Diluted EPS 0.01

Operating cash flow $993.00K

Free cash flow $-166.00K

Revenue $9.34M

Net income $-5.68M

Diluted EPS -0.66

Operating cash flow $-1.52M

Free cash flow $-1.68M

Revenue $10.33M

Net income $-12.75M

Diluted EPS -0.54

Operating cash flow $741.00K

Free cash flow $505.00K

Revenue $9.36M

Net income $-20.66M

Diluted EPS -6.49

Operating cash flow $1.28M

Free cash flow $1.23M

Is it cheap or expensive?

Fair value $3.44 vs current price $4.50

Our most-likely fair value is $3.44 a share — about 23.5% away from today's price of $4.50, so the stock currently looks fairly priced.

fair

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 10.0% · Discount 10.2% · Terminal 3.0%

$3.44

Bear

Growth 3.0% · Discount 10.2% · Terminal 3.0%

$1.92

Bull

Growth 25.0% · Discount 10.2% · Terminal 3.0%

$9.23

Is it drowning in debt?

Distressed

Net debt $11.3M. Interest coverage 0.8x.

Net debt $11.33M

Interest coverage 0.79x

SANUWAVE Health, Inc. is healthier than 0 of 1 peers on balance-sheet leverage.

Distressed

Worse cushion Baseline Better cushion

SNWV BASELINE SANUWAVE Health, Inc.

Total debt $20.71M Interest coverage 0.79x This is the baseline the peer rows are being compared against.

What you should know

The case for and against SNWV

1 Reward 0 Risks

Rewards

Free cash flow was positive in 2/10 years.

Risks

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)

5.56x

Forward P/E

-450.00x

P/B

13.89x

P/S

0.88x

EV/EBITDA

11.62x

PEG ratio

—

Profitability

How much profit each dollar creates

Gross margin

76.3%

Operating margin

-2.9%

Net margin

34.7%

ROE

—

ROA

5.5%

Health

Liquidity and balance-sheet strength

Debt / equity

7.43x

Current ratio

1.28x

Quick ratio

0.83x

Total debt

$20.71M

Total cash

$9.38M

Growth

How the business has been compounding

Revenue TTM

$43.90M

Revenue 5Y CAGR

35.6%

EPS TTM

0.81

EPS 5Y CAGR

—

Cash flow

How much cash the business throws off

Operating CF TTM

$5.22M

Free CF TTM

$1.93M

FCF margin

4.4%

Dividend

Shareholder payout

Yield

—

Payout ratio

0.0%

Last ex-div date

—

SANUWAVE Health, Inc.

$3.44 our estimate vs market $4.50

0.79x Concerning

1 rewards · 0 risks

SANUWAVE Health, Inc.

How the company got here

What it actually does

UltraMIST System

What management is betting on now

How the share price has moved

Last 8 quarters — what happened

Fair value ? $3.44 vs current price $4.50

Distressed

The case for and against SNWV

Rewards

Risks

All the key metrics, grouped by purpose

How expensive the stock looks

How much profit each dollar creates

Liquidity and balance-sheet strength

How the business has been compounding

How much cash the business throws off

Shareholder payout

Fair value $3.44 vs current price $4.50