Envoy Medical (COCH) AI Stock Analysis

• Market Cap: $29.64M
• Dividend Yield: N/A
• Average Volume (3M): 26.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -9.40%
• EPS Growth: -153.52%
• Country: US
• Employees: 42
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Devices
• EPS (TTM): N/A
• Shares Outstanding: 21,326,618
• 10 Day Avg. Volume: 35,036
• 30 Day Avg. Volume: 26,741
• PEG Ratio: -0.02
• Price to Book (P/B): -1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.75
• 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: $6.83
• Price Target Upside: 349.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 42 Neutral
• Price Target: $1.50 ▼(-1.32%Downside)

The overall stock score reflects significant financial instability and valuation concerns, driven by declining revenues, continuous losses, and a negative P/E ratio. Technical analysis suggests some near-term volatility but does not offset the financial and valuation challenges.

Positive Factors

Product Development

Envoy has developed the Acclaim CI, a fully implanted cochlear implant that does not require any external component to be worn on the ear.

Regulatory Approval

The recent IDE approval for the Acclaim CI with the FDA to begin clinical testing is a significant milestone for the company.

Negative Factors

Financial Performance

Revenue was ~$0 million, compared to estimates of $0.1 million, leading to a net loss of $9.1 million or EPS of $(0.46).

Market Risks

Envoy Medical’s devices still have long development and/or commercialization roads ahead, with high risks of clinical trials or commercial failures.

Envoy Medical Business Overview & Revenue Model

Company Description

Envoy Medical, Inc., a hearing health company, provides medical technologies for the hearing loss spectrum. Its products include hearing aids; Esteem middle ear implants; bone conduction devices; and Acclaim cochlear implants. Envoy Medical Corporation was formerly known as St. Croix Medical, Inc. and changed its name to Envoy Medical Corporation in December 2004. The company was founded in 1995 and is based in White Bear Lake, Minnesota.

How the Company Makes Money

Envoy Medical generates revenue primarily through the sale of its Esteem® Hearing Implant. The company targets individuals with moderate to severe sensorineural hearing loss who seek a permanent and unobtrusive hearing solution. Revenue is derived from direct sales to healthcare providers, clinics, and hospitals, which in turn offer the implant to patients. Envoy Medical may also engage in partnerships with medical institutions and hearing specialists to expand its reach and enhance product adoption. Additionally, the company may have revenue streams from ancillary services such as post-implantation support and maintenance. Key factors contributing to its earnings include its innovative technology, the growing demand for advanced hearing solutions, and potential reimbursement from insurance providers for the implant procedure.

Envoy Medical Financial Statement Overview

Summary

Envoy Medical is struggling with financial instability, marked by declining revenues, continuous losses, and high leverage. The negative equity position, coupled with poor cash flow generation, presents significant financial risks. The company needs strategic adjustments to improve profitability and financial health.

Income Statement

Envoy Medical has experienced declining revenues with a negative revenue growth rate in the TTM period. The company is operating at a loss with negative net income, resulting in a negative net profit margin. Margins such as gross profit, EBIT, and EBITDA are negative, indicating financial instability and operational challenges.

Balance Sheet

The balance sheet reveals significant financial stress, with negative stockholders' equity indicating liabilities exceed assets. The company has a negative equity ratio and faces high leverage, evidenced by a high debt-to-equity ratio. Return on equity is negative due to ongoing losses, posing risks to financial sustainability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, highlighting challenges in generating cash from operations. The operating cash flow to net income ratio is less than one, indicating inefficiency in converting income to cash flow. Free cash flow remains negative, although there is some improvement in financing activities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
212.00K	225.00K	316.00K	237.00K	310.00K
	Gross Profit
-86.00K	-517.00K	-473.00K	-720.00K	-459.00K
	EBIT
-19.46M	-19.26M	-18.37M	-8.71M	-6.87M
	EBITDA
-13.61M	-19.81M	-18.24M	-8.63M	-6.80M
	Net Income Common Stockholders
-19.52M	-20.80M	-29.91M	-15.92M	-8.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.31M	5.48M	4.22M	183.00K	1.12M
	Total Assets
10.38M	11.54M	7.64M	2.56M	2.62M
	Total Debt
923.00K	19.66M	562.00K	34.53M	23.48M
	Net Debt
-4.39M	14.18M	-3.66M	34.35M	22.36M
	Total Liabilities
34.61M	30.38M	9.40M	58.72M	47.58M
	Stockholders Equity
-24.22M	-18.84M	-1.76M	-56.17M	-44.96M
Cash Flow		Free Cash Flow
-16.70M	-18.93M	-17.81M	-9.02M	-7.06M
	Operating Cash Flow
-15.83M	-17.95M	-17.65M	-8.80M	-6.94M
	Investing Cash Flow
-877.00K	-980.00K	-153.00K	-218.00K	-125.00K
	Financing Cash Flow
17.07M	20.20M	21.84M	8.09M	8.06M

Envoy Medical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COCH, the sentiment is Positive. The current price of 1.52 is below the 20-day moving average (MA) of 1.60, above the 50-day MA of 1.46, and below the 200-day MA of 1.97, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 18.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COCH.

Envoy Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.24B	3.27	-45.39%	2.80%	16.77%	-0.07%
GBIO	46 Neutral	$24.51M	―	-70.06%	―	146.47%	57.85%
CLGN	45 Neutral	$25.94M	―	-75.27%	―	-76.73%	-85.83%
MDAI	45 Neutral	$45.83M	―	256.43%	―	238.96%	35.96%
COCH	42 Neutral	$29.64M	―	1697.39%	―	-9.40%	-153.52%
CASI	41 Neutral	$28.97M	―	-1094.50%	―	11.40%	-18.18%
PYPD	41 Neutral	$32.20M	―	-853.05%	―	―	34.97%

Envoy Medical Corporate Events

Envoy Medical Elects Directors and Amends Incentive Plan

At the annual meeting, Envoy Medical‘s stockholders elected two Class II directors to the Board of Directors, ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, approved executive compensation on a non-binding basis, and amended the 2023 Equity Incentive Plan. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its financial oversight and executive management structure.

The most recent analyst rating on (COCH) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Envoy Medical stock, see the COCH Stock Forecast page.