Encision (ECIA) AI Stock Analysis

• Market Cap: $3.90M
• Dividend Yield: N/A
• Average Volume (3M): 2.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: -5.39%
• EPS Growth: -29.40%
• Country: US
• Employees: 22
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Instruments & Supplies
• EPS (TTM): >-0.01
• Shares Outstanding: 11,879,645
• 10 Day Avg. Volume: 869
• 30 Day Avg. Volume: 2,224
• PEG Ratio: -0.31
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Encision's overall stock score is driven by financial challenges, with declining revenues and negative profit margins indicating operational inefficiencies. The company shows some resilience in cash flow management, but the technical analysis reflects a bearish trend with oversold conditions, suggesting possible short-term price recovery. Valuation metrics point to high risks with a negative P/E ratio. While there are some positive cash flow aspects, the overall outlook remains cautious, necessitating strategic improvements for future growth.

Encision Business Overview & Revenue Model

Company Description

Encision Inc. (ECIA) is a medical device company that designs, develops, manufactures, and markets innovative surgical instruments. The company focuses on providing advanced solutions for minimally invasive surgeries, with a particular emphasis on improving safety and effectiveness. Encision's core product offerings include a range of patented Active Electrode Monitoring (AEM) products, which are designed to enhance safety in laparoscopic surgical procedures by preventing stray electrosurgical burns.

How the Company Makes Money

Encision generates revenue primarily through the sale of its proprietary surgical instruments and devices. The company's key revenue streams include direct sales to hospitals and healthcare providers, as well as distribution agreements with third-party medical device distributors. Encision's patented technology, such as the AEM system, provides a competitive advantage that allows it to capture market share in the laparoscopic surgery device sector. Additionally, the company may engage in partnerships or collaborations with other healthcare organizations to expand its market reach and enhance its product offerings.

Encision Financial Statement Overview

Summary

Encision faces financial challenges with declining revenues and negative profit margins, reflecting operational inefficiencies. The balance sheet displays moderate leverage but declining equity, suggesting financial pressures. Cash flow management shows improvement in free cash flow, indicating some resilience. Overall, while the company demonstrates certain strengths in cash management, its profitability and revenue trends require strategic attention to improve financial health.

Income Statement

The company's income statement reveals challenges with consistent revenue and profit margins. TTM (Trailing-Twelve-Months) data shows a decline in total revenue compared to previous periods, with a negative net profit margin of -8.96%. EBIT and EBITDA margins are also negative, suggesting operational inefficiencies. Gross profit margin stands at 50.30%, indicating moderate cost management. There's a downward trend in revenue growth, with a 13.04% decrease from 2023 to 2024, highlighting market or operational struggles.

Balance Sheet

The balance sheet reflects moderate leverage, with a debt-to-equity ratio of 0.42, suggesting manageable debt levels relative to equity. However, the declining stockholders' equity and total assets over the periods signal weakening financial stability. The equity ratio is 43.73%, indicating a fair proportion of assets financed by equity. Return on Equity (ROE) is negative, at -34.48%, due to the net losses, impacting shareholder value. Overall, the company's financial position is stable but shows signs of stress.

Cash Flow

Cash flow analysis shows a positive trajectory in free cash flow, with a growth rate of 22.05% from 2023 to 2024. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite net losses. The free cash flow to net income ratio also suggests effective cash management. However, fluctuations in financing cash flows indicate reliance on external funds to support operations. While cash flow management appears sound, the company's overall liquidity position could be strengthened.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
6.50M	6.59M	7.35M	7.67M	7.54M	7.67M
	Gross Profit
3.27M	3.14M	4.03M	3.79M	3.90M	4.00M
	EBIT
-553.44K	-640.78K	-303.00K	-595.00K	-61.00K	-156.00K
	EBITDA
-397.23K	-544.20K	-217.51K	55.10K	760.82K	-17.12K
	Net Income Common Stockholders
-581.89K	-691.78K	-366.00K	463.34K	584.73K	-241.43K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
347.92K	42.51K	189.00K	950.00K	1.47M	385.00K
	Total Assets
3.86M	3.81M	4.13M	4.79M	5.66M	4.74M
	Total Debt
1.31M	1.33M	1.08M	1.15M	2.00M	1.79M
	Net Debt
962.56K	1.29M	894.00K	204.00K	529.00K	1.41M
	Total Liabilities
2.17M	1.98M	1.64M	2.05M	2.86M	2.55M
	Stockholders Equity
1.69M	1.83M	2.50M	2.75M	2.80M	2.18M
Cash Flow		Free Cash Flow
131.30K	107.57K	-1.04M	-480.00K	175.00K	-283.00K
	Operating Cash Flow
135.89K	144.39K	-861.00K	-444.00K	220.00K	-229.00K
	Investing Cash Flow
-89.44K	-36.82K	-183.00K	-36.00K	-45.00K	-54.00K
	Financing Cash Flow
202.23K	-254.02K	284.00K	-44.00K	914.00K	370.00K

Encision Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECIA, the sentiment is Negative. The current price of 0.33 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.44, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 21.32 is Positive, neither overbought nor oversold. The STOCH value of 17.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ECIA.

Encision Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHUA	69 Neutral	$12.47M	1.09	7.10%	―	-0.19%	-18.41%
Sector *	52 Neutral	$5.15B	3.02	-44.64%	2.83%	16.44%	-0.47%
MLSS	50 Neutral	$70.24M	―	-88.36%	―	-9.13%	30.04%
ECIA	48 Neutral	$3.90M	―	-29.99%	―	-5.39%	-29.40%
FEMY	39 Underperform	$28.87M	―	-239.87%	―	61.97%	-6.89%
POAI	39 Underperform	$9.65M	―	-504.16%	―	-31.31%	49.27%