Pulmonx (LUNG) AI Stock Analysis

• Market Cap: $64.38M
• Dividend Yield: N/A
• Average Volume (3M): 344.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: 18.24%
• EPS Growth: 4.81%
• Country: US
• Employees: 291
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.38
• Shares Outstanding: 40,746,555
• 10 Day Avg. Volume: 282,471
• 30 Day Avg. Volume: 344,739
• PEG Ratio: 0.47
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 3.17
• P/FCF Ratio: -8.05
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 1.16
• Enterprise Value/Ebitda: -1.28
• 1Y Price Target: $4.90
• Price Target Upside: 208.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 46 Neutral
• Price Target: $1.50 ▼(-5.66% Downside)

Pulmonx's stock score is primarily impacted by its financial performance challenges, including profitability and cash flow issues. Technical analysis indicates a bearish trend, and valuation metrics reflect ongoing losses. The earnings call provided some positive insights, particularly in international markets, but was offset by revised guidance and slower U.S. growth.

Positive Factors

International Revenue Growth

Strong international revenue growth indicates successful market expansion and adoption of Pulmonx's products, enhancing long-term revenue potential.

Expansion of Screening Capacity

Expanding screening capacity and training new physicians increases patient access, supporting future growth in treatment adoption and revenue.

Innovative Product Development

Investment in innovative tools like AI-powered screening enhances Pulmonx's competitive edge and supports long-term growth through improved patient outcomes.

Negative Factors

Rising Debt Levels

Increasing leverage can pose financial risks, potentially straining cash flow and limiting flexibility, impacting long-term financial stability.

Revised Revenue Guidance

Downward revision of revenue guidance reflects challenges in U.S. market execution, potentially impacting investor confidence and future growth expectations.

Decline in Gross Margin

A decline in gross margin suggests potential cost pressures or pricing challenges, which could affect profitability if not managed effectively over time.

Pulmonx Business Overview & Revenue Model

Company Description

Pulmonx Corporation, a medical technology company, provides minimally invasive devices for the treatment of chronic obstructive pulmonary diseases. It offers Zephyr Endobronchial Valve, a solution for the treatment of bronchoscopic in adult patients with hyperinflation associated with severe emphysema; and Chartis Pulmonary Assessment System, a balloon catheter and console system with flow and pressure sensors that are used to assess the presence of collateral ventilation. The company also provides StratX Lung Analysis Platform, a cloud-based quantitative computed tomography analysis service that offers information on emphysema destruction, fissure completeness, and lobar volume to help identify target lobes for the treatment with Zephyr Valves. It serves emphysema patients in the United States, Europe, the Middle East, Africa, the Asia-Pacific, and internationally. The company was formerly known as Pulmonx and changed its name to Pulmonx Corporation in December 2013. Pulmonx Corporation was incorporated in 1995 and is headquartered in Redwood City, California.

How the Company Makes Money

Pulmonx generates revenue through the sale of its medical devices and therapies, predominantly the Zephyr Endobronchial Valve system. The company sells its products directly to hospitals and healthcare providers, which typically involve surgical procedures for implantation. Revenue is also supplemented through post-procedure follow-up care and services associated with the product. Additionally, Pulmonx may engage in strategic partnerships with healthcare institutions and payers to enhance patient access to its therapies, which can lead to increased adoption and sales. The company may benefit from reimbursements from insurance providers for its procedures, further contributing to its revenue model.

Pulmonx Financial Statement Overview

Summary

Pulmonx shows strong revenue growth and gross profit margins, but faces significant challenges with profitability and cash flow management. The balance sheet is stable, but ongoing losses and negative cash flows pose risks to financial health.

Income Statement

Pulmonx has shown consistent revenue growth with a TTM (Trailing-Twelve-Months) increase of 4.4% compared to the previous year. However, the company continues to operate at a loss, with negative EBIT and net income margins indicating significant operational challenges. Gross profit margins remain strong at 73.6% TTM, but the persistent losses suggest difficulty in managing operating expenses.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.73, indicating relatively balanced leverage. The equity ratio stands at 51.5%, suggesting a stable capital structure. However, the return on equity is negative due to ongoing net losses. Pulmonx maintains a healthy cash position with cash and equivalents covering total debt.

Cash Flow

Pulmonx's cash flow position is concerning, with negative operating and free cash flows indicating cash burn. The free cash flow to net income ratio is negative, reflecting challenges in generating cash from operations. The operating cash flow to net income ratio also remains negative, consistent with the trend of operating losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.55M	83.79M	68.67M	53.66M	48.42M	32.73M
Gross Profit	66.26M	62.00M	50.75M	39.87M	35.63M	21.20M
EBITDA	-60.06M	-50.79M	-55.09M	-55.99M	-46.62M	-28.44M
Net Income	-56.94M	-56.39M	-60.84M	-58.92M	-48.66M	-32.23M
Balance Sheet
Total Assets	147.19M	162.85M	177.78M	193.68M	235.17M	263.71M
Cash, Cash Equivalents and Short-Term Investments	84.22M	101.48M	117.10M	141.14M	180.04M	231.56M
Total Debt	56.83M	56.47M	41.42M	24.40M	26.46M	27.22M
Total Liabilities	78.10M	77.04M	59.47M	39.67M	41.93M	37.57M
Stockholders Equity	69.09M	85.81M	118.31M	154.01M	193.24M	226.13M
Cash Flow
Free Cash Flow	-31.98M	-32.98M	-38.42M	-46.40M	-45.06M	-31.54M
Operating Cash Flow	-31.10M	-31.54M	-37.61M	-45.08M	-41.39M	-30.63M
Investing Cash Flow	42.60M	17.48M	-2.01M	-4.22M	-46.26M	12.69M
Financing Cash Flow	1.12M	1.36M	21.40M	2.47M	4.46M	234.83M

Pulmonx Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUNG, the sentiment is Negative. The current price of 1.59 is below the 20-day moving average (MA) of 1.69, below the 50-day MA of 1.66, and below the 200-day MA of 4.24, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 7.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LUNG.

Pulmonx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRTS	58 Neutral	$53.92M	48.68	-1.62%	―	3.30%	-112.70%
XTNT	52 Neutral	$104.25M	―	-9.80%	―	15.16%	-39.18%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
APYX	47 Neutral	$113.46M	―	-156.90%	―	-5.14%	44.86%
TELA	47 Neutral	$57.84M	―	-676.41%	―	16.34%	34.86%
LUNG	46 Neutral	$64.38M	―	-66.88%	―	18.24%	4.81%
ICCM	42 Neutral	$59.85M	―	-230.80%	―	-16.46%	4.14%