tiprankstipranks
Somnomed Limited (AU:SOM)
ASX:SOM
Want to see AU:SOM full AI Analyst Report?

Somnomed Limited (SOM) AI Stock Analysis

7 Followers

Top Page

AU:SOM

Somnomed Limited

(Sydney:SOM)

Select Model
Select Model
Select Model
Neutral 54 (OpenAI - Gpt-5.6Sol)
Rating:54Neutral
Price Target:
AU$0.34
â–˛(3.64% Upside)
Action:Reiterated
Date:08/29/26
The score is held back primarily by weak technicals (price below all key moving averages with negative MACD) and only moderate financial strength (improving cash flow and low leverage, but still net losses and a recent revenue dip). Earnings call guidance is modestly supportive with targeted FY'27 growth and steady margins, but multiple operational and market headwinds reduce confidence. Valuation provides limited support due to a negative P/E and no dividend yield provided.
Positive Factors
Cash generation and balance sheet
Improved operating and free cash flow, combined with low leverage and $16.8m of net cash, gives SomnoMed greater flexibility to fund capacity, product development and market expansion without excessive balance-sheet risk.
Negative Factors
Profitability remains incomplete
Although gross margins and operating profitability have improved, persistent net losses show that the business has not yet converted product economics into consistent shareholder returns. This limits internally funded growth and leaves execution sensitive to cost pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation and balance sheet
Improved operating and free cash flow, combined with low leverage and $16.8m of net cash, gives SomnoMed greater flexibility to fund capacity, product development and market expansion without excessive balance-sheet risk.
Read all positive factors

Somnomed Limited (SOM) vs. iShares MSCI Australia ETF (EWA)

Somnomed Limited Business Overview & Revenue Model

Company Description
SomnoMed Limited, together with its subsidiaries, produce and sells devices for the oral treatment of sleep related disorders in the Asia Pacific region, North America, and Europe. It provides SomnoDent Avant, as well as SomnoDent Classic, SomnoDe...
How the Company Makes Money
SomnoMed primarily makes money by selling medical devices—custom oral appliances used to treat OSA and snoring—through a prescription-based clinical workflow. Revenue is generated when a sleep physician (or other qualified clinician) diagnoses OSA...

Somnomed Limited Financial Statement Overview

Summary
Financials are improving but not yet consistently profitable. Revenue has scaled over several years but dipped ~3.3% in the latest year, gross margins remain solid, and operating profitability has turned slightly positive (EBIT margin ~0.9%) while net margin is still negative (~-2.3%). Balance sheet risk is lower with conservative leverage (debt-to-equity ~0.12), and cash flow has improved with positive operating cash flow and free cash flow in 2025–2026, though historical volatility and ongoing net losses keep the score mid-range.
Income Statement
52
Neutral
Balance Sheet
71
Positive
Cash Flow
66
Positive
BreakdownJun 2026Jun 2025Jun 2024Jun 2023Jun 2022
Income Statement
Total Revenue114.53M111.49M91.65M83.62M72.58M
Gross Profit60.91M66.73M55.13M45.77M39.15M
EBITDA6.46M1.58M-2.33M698.39K524.53K
Net Income-2.65M-3.46M-12.24M-8.00M-4.44M
Balance Sheet
Total Assets75.00M80.97M69.80M62.49M58.09M
Cash, Cash Equivalents and Short-Term Investments17.18M17.29M16.18M11.96M15.64M
Total Debt5.46M8.03M6.72M23.51M12.01M
Total Liabilities27.60M34.58M24.78M40.09M30.31M
Stockholders Equity47.40M46.39M45.02M22.40M27.79M
Cash Flow
Free Cash Flow5.02M5.36M-7.72M-10.29M-6.93M
Operating Cash Flow8.28M7.78M-6.33M-3.88M1.86M
Investing Cash Flow-5.74M-3.98M-5.34M-6.41M-8.47M
Financing Cash Flow-1.47M-3.38M16.68M6.61M2.09M

Somnomed Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.33
Price Trends
50DMA
0.44
Negative
100DMA
0.51
Negative
200DMA
0.61
Negative
Market Momentum
MACD
-0.03
Negative
RSI
30.49
Neutral
STOCH
4.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SOM, the sentiment is Negative. The current price of 0.33 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.44, and below the 200-day MA of 0.61, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 30.49 is Neutral, neither overbought nor oversold. The STOCH value of 4.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SOM.

Somnomed Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$8.90B60.498.01%3.80%-0.90%-62.14%
61
Neutral
AU$50.94M231.820.93%―18.54%―
54
Neutral
AU$73.62M-27.69-5.44%―2.73%25.00%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
46
Neutral
AU$2.18B-9.23-288.42%―20.64%-457.40%
42
Neutral
AU$64.75M-3.22-62.14%―12.05%-31.71%
40
Underperform
AU$18.81M-1.75-180.06%―15.58%37.17%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SOM
Somnomed Limited
0.34
-0.45
-57.05%
AU:COH
Cochlear
136.10
-158.65
-53.82%
AU:CMP
Compumedics Limited
0.26
-0.03
-10.53%
AU:CYC
Cyclopharm Limited
0.52
-0.46
-47.45%
AU:MX1
Micro-X Ltd.
0.03
-0.06
-68.75%
AU:4DX
4DMedical Ltd
3.64
2.86
366.67%

Somnomed Limited Corporate Events

SomnoMed Director Russo Sees Reduction in Options After Lapse
Aug 28, 2026
SomnoMed Limited has reported a change in the interests of director Gaetano Alfred Gerrard Russo, whose holdings are held indirectly through a self-managed superannuation fund. Prior to the change, the fund held 2,055,220 ordinary fully paid share...
SomnoMed Discloses Lapse of Director Michael Gordon’s Options
Aug 28, 2026
SomnoMed Limited has disclosed a change in director Michael Gordon’s interests in the company’s securities, reflecting the lapse of a portion of his options held via a superannuation structure. Gordon retains his indirect shareholding ...
SomnoMed Tightens Insider Trading Rules With New Securities Policy
Aug 27, 2026
SomnoMed Limited operates in the medical devices sector, focusing on oral appliance therapies for the treatment of sleep-related breathing disorders such as obstructive sleep apnea. The company targets patients, clinicians, and sleep specialists i...
SomnoMed Outlines Board Oversight and Governance Framework Under ASX Principles
Aug 27, 2026
SomnoMed has detailed its corporate governance framework in line with the latest ASX Corporate Governance Principles, outlining how its board and management divide responsibilities and meet disclosure obligations. The board charter emphasizes over...
SomnoMed Flags Risks and Limits of FY26 Investor Presentation
Aug 27, 2026
SomnoMed has released an investor presentation on its full-year 2026 results, framed as a high-level summary rather than a comprehensive account of its financial position, performance, or the rights and obligations attached to its securities. The ...
SomnoMed lifts FY26 earnings and expands capacity amid FX headwinds
Aug 27, 2026
SomnoMed reported FY26 revenue of $114.5 million, up 3% on the prior year, and EBITDA of $10.9 million, a 19% increase that lifted its EBITDA margin to 9.6% through disciplined cost control. A stronger Australian dollar and shifting European marke...
SomnoMed narrows annual loss as revenue edges higher in FY2026
Aug 27, 2026
SomnoMed Limited, a specialist in clinically proven oral appliance therapies for sleep-related breathing disorders, reported modest revenue growth for the year ended 30 June 2026 despite remaining loss-making. The company continues to leverage its...
SomnoMed Options Lapse, Trimming Potential Share Dilution
Aug 25, 2026
SomnoMed Limited has announced the cessation of a portion of its issued capital, with 233,000 SOMAB options and 1,242,000 SOMAA options expiring on 25 August 2026.The options, both due to expire in June 2027 with exercise prices of $2.33 and $2.00...
SomnoMed Sets Date for FY26 Results and Investor Webinar
Aug 19, 2026
SomnoMed Limited, a specialist in clinically proven oral appliance therapies for sleep-related breathing disorders, has built a global footprint with its SomnoDent device, serving more than one million patients in over 20 countries. The company&#8...
Somnomed Discloses Equity Holdings as Director Amrita Singh Blickstead Departs Board
Jul 27, 2026
Somnomed Limited has reported a change on its board, noting that director Amrita Singh Blickstead ceased to be a director on 27 July 2026. The filing details her remaining interests in the company, including 2,392,364 ordinary fully paid shares, 1...
SomnoMed reshapes leadership, tempers FY26 revenue and launches Virtus for OSA bruxism segment
Jul 27, 2026
SomnoMed has announced a leadership transition, with Co-CEO and Executive Director Amrita Blickstead stepping down and fellow Co-CEO Karen Borg moving into the sole CEO role. The board credited Blickstead with driving operational improvements and ...
Somnomed Director Karen Borg Updates Share and Option Holdings
Jul 24, 2026
Somnomed Limited has reported a change in the relevant interests of director Karen Borg, following the exercise of options that altered her holdings in the company’s securities. The notice details that Borg’s interests include both dir...
SomnoMed Seeks ASX Quotation for 575,000 New Shares
Jul 24, 2026
SomnoMed Limited has applied for quotation on the ASX of 575,000 new fully paid ordinary shares, issued on 23 July 2026. The additional securities arise from the exercise or conversion of existing options or other convertible instruments, and will...
SomnoMed Lists Additional Shares in Routine ASX Capital Move
Jul 22, 2026
SomnoMed Limited operates in the medical device sector, focusing on oral appliances for the treatment of sleep-related breathing disorders such as obstructive sleep apnea. Listed on the ASX under the ticker SOM, the company targets patients and he...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2026