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Myomo Inc (MYO)
:MYO
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Myomo
(NYSE MKT:MYO)
53Neutral
Positive Factors
Financial Performance
MYO reported 1Q25 results with revenue up 162% year-over-year, above 1Q25 guidance, consensus, and analyst's estimate.
Market Expansion
The Medicare Part B population has become a significant and growing portion of patients and revenue, viewed positively by the analysts.
Strategic Growth
Management plans to scale up the company’s commercial operations, expand its new manufacturing facility, and increase the advertising budget to $6M for the year, double that of 2024.
Negative Factors
Operational Challenges
The change to Meta’s guidelines to the sharing of personal health information on Facebook resulted in fewer potential patients added to the pipeline during the first quarter.
Regulatory and Payer Challenges
Reduced authorizations from Medicare Advantage payers as well as private payers during the quarter resulted in numerous appeals as well as delays.
Revenue Guidance
Management introduced lower-than-expected 2Q25 revenue guidance of $9.0M–$9.5M, below prior at-consensus estimate.
Myomo (MYO) vs. S&P 500 (SPY)
Market Cap
$171.62M
Dividend YieldN/A
Average Volume (3M)291.05K
Price to Earnings (P/E)―
Beta (1Y)1.93
Revenue Growth69.17%
EPS Growth39.01%
CountryUS
Employees184
SectorHealthcare
Sector Strength50
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.08
Shares Outstanding35,978,650
10 Day Avg. Volume279,601
30 Day Avg. Volume291,054
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.36
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit10.08
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.13Price Target Upside185.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Myomo Business Overview & Revenue Model
Company DescriptionMyomo, Inc., a wearable medical robotics company, designs, develops, and produces myoelectric orthotics for people with neuromuscular disorders in the United States. The company offers MyoPro, a myoelectric-controlled upper limb brace or orthosis product used for supporting a patient's weak or paralyzed arm to enable and improve functional activities of daily living. Its products are designed to help improve function in adults and adolescents with neuromuscular conditions due to brachial plexus injury, stroke, traumatic brain injury, spinal cord injury, and other neurological disorders. The company sells its products to orthotics and prosthetics providers, the Veterans Health Administration, and rehabilitation hospitals, as well as through distributors. Myomo, Inc. was incorporated in 2004 and is headquartered in Boston, Massachusetts.
How the Company Makes MoneyMyomo generates revenue primarily through the sale and rental of its MyoPro devices. The company's revenue model includes direct sales to private individuals, healthcare institutions, and through partnerships with orthotics and prosthetics providers. Additionally, Myomo engages in reimbursement agreements with insurance companies and government healthcare programs to facilitate the coverage of its devices for patients. The company's earnings are significantly supported by its strategic collaborations with rehabilitation centers and distribution partners, which help expand its market reach and ensure accessibility of its products to a broader patient base.
Myomo Financial Statement Overview
Summary
Myomo shows strong revenue growth, crucial for its industry. However, lack of profitability and negative cash flows are significant challenges. Its balance sheet indicates a conservative structure, which provides some stability.Income Statement
The company has shown significant revenue growth over the years, with the most recent year showing a substantial increase in total revenue. However, profitability remains a concern as net income has been consistently negative, and EBIT and EBITDA margins are not available due to zero figures. The gross profit margin is relatively strong, indicating efficient cost management relative to revenue.45
Neutral
Balance Sheet
The company's debt-to-equity ratio is low, indicating conservative leverage, which is a positive aspect. Stockholders' equity has grown significantly, and the equity ratio is stable, suggesting a solid capital structure. However, continuous net losses could pose a risk to future equity stability.60
Neutral
Cash Flow
Operating cash flow has been negative, reflecting challenges in generating cash from core operations. However, the company has managed to maintain liquidity through financing activities. The absence of positive free cash flow growth is a concern, but the negative free cash flow is improving.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 32.55M | 19.24M | 15.56M | 13.86M | 7.58M | Gross Profit |
| 23.19M | 13.18M | 10.25M | 10.31M | 4.98M | EBIT |
| 0.00 | -8.23M | -10.67M | -10.27M | -10.50M | EBITDA |
| 0.00 | -7.71M | -10.13M | -9.93M | -11.24M | Net Income Common Stockholders |
| 0.00 | -8.15M | -10.72M | -10.37M | -12.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 24.87M | 8.87M | 5.35M | 15.52M | 12.24M | Total Assets |
| 42.24M | 14.58M | 10.16M | 20.10M | 14.71M | Total Debt |
| 8.11M | 601.30K | 553.91K | 735.00K | 173.44K | Net Debt |
| -16.27M | -6.27M | -4.79M | -14.79M | -12.07M | Total Liabilities |
| 17.53M | 5.59M | 3.80M | 4.69M | 3.14M | Stockholders Equity |
| 24.71M | 8.99M | 6.36M | 15.41M | 11.57M |
| Cash Flow | Free Cash Flow | |||
| -3.29M | -6.32M | -10.35M | -9.87M | -9.08M | Operating Cash Flow |
| -3.29M | -6.17M | -10.23M | -9.55M | -9.03M | Investing Cash Flow |
| 259.98K | -2.03M | -310.79K | -326.46K | -45.75K | Financing Cash Flow |
| 20.93M | 9.71M | 376.86K | 13.17M | 16.78M |
Myomo Technical Analysis
Negative
3.20
Price Trends
4.76
Negative
5.42
Negative
4.87
Negative
Market Momentum
-0.22
Positive
26.48
Positive
27.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MYO, the sentiment is Negative. The current price of 3.2 is below the 20-day moving average (MA) of 4.49, below the 50-day MA of 4.76, and below the 200-day MA of 4.87, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 26.48 is Positive, neither overbought nor oversold. The STOCH value of 27.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MYO.
Myomo Risk Analysis
Myomo disclosed 50 risk factors in its most recent earnings report. Myomo reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Myomo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $163.06M | 52.28 | 5.62% | ― | 29.04% | ― | |
54 Neutral | $204.51M | ― | -86.53% | ― | -7.84% | 42.34% | |
53 Neutral | $171.62M | ― | -35.68% | ― | 69.17% | 39.01% | |
52 Neutral | $5.17B | 3.59 | -42.19% | 2.82% | 15.05% | -0.04% | |
51 Neutral | $193.60M | ― | -76.01% | ― | 25.62% | 11.86% | |
50 Neutral | $165.88M | ― | 271.41% | ― | 169.66% | 28.89% | |
48 Neutral | $145.26M | ― | -52.87% | ― | -4.16% | 12.79% |
* Healthcare Sector Average
Performance Comparison
MYO
Myomo
3.20
-0.44
-12.09%
BWAY
Brainsway
8.71
3.21
58.36%
OM
Outset Medical
15.30
-31.20
-67.10%
TLSI
TriSalus Life Sciences
5.02
-5.22
-50.98%
CVRX
CVRx
4.77
-2.92
-37.97%
SGHT
Sight Sciences
3.08
-2.34
-43.17%
Myomo Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -33.88%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and promising developments in the O&P channel and international markets. However, the company faced challenges in lead generation due to changes in Meta's policies and high denial rates from Medicare Advantage plans, which impacted the authorization rate and operating expenses. Despite these challenges, the company maintained its full-year guidance and showed confidence in overcoming these hurdles.Q1-2025 Updates
Positive Updates
Record Revenue Growth in Q1 2025
Q1 revenues increased by more than 160% to $9.8 million, driven by a 100% increase in MyoPro units delivered year-over-year and a 31% increase in average selling price.
Significant Growth in Medicare Part B Revenue
Medicare Part B patients represented 60% of revenue, highlighting strong adoption and coverage for MyoPro devices.
Expansion of O&P Channel
Training completed for over 300 CPOs, up from 160, with significant progress in becoming Certified MyoPro Centers of Excellence.
International Sales Performance
International business generated over $1.3 million, primarily from Germany, indicating strong growth in international markets.
Negative Updates
Challenges with Lead Generation
Meta's changes in marketing policies initially impacted lead generation, resulting in fewer patients moving through the authorization process.
High Denial Rates from Medicare Advantage Plans
Medicare Advantage and certain commercial insurance plans continue to deny or delay authorizations, affecting the authorization rate which was only up 18% year-over-year.
Increased Costs and Operating Expenses
Operating expenses increased by 64% over the prior year, driven by higher headcount, advertising spend, and R&D expenses, leading to an operating loss of $3.5 million.
Decrease in Backlog
Backlog decreased by 9% year-over-year, reflecting fewer pre-authorizations and a backend loading of pipeline adds due to the Meta algorithm change.
Company Guidance
During Myomo's First Quarter 2025 Earnings Conference Call, the company provided several key metrics reflecting strong performance and strategic guidance despite facing some challenges. The company reported a significant year-over-year revenue growth of 162%, reaching $9.8 million, with Medicare Part B patients contributing to 60% of this revenue. It delivered 182 MyoPro units, a 100% increase compared to Q1 2024, and saw a 31% rise in the average selling price (ASP). The patient pipeline expanded by 33%, ending the quarter with nearly 1,500 patients, and 213 MyoPros were authorized and ordered. While the O&P channel revenue was $475,000, up 87% year-over-year, it reflected seasonal fluctuations. The company navigated challenges with lead generation due to changes in advertising policies by Meta, which affected lead efficiency early in the quarter, but recovered to achieve a record number of leads in April. Additionally, Myomo maintained its guidance for 2025, expecting full-year revenue to be between $50 million and $53 million, indicating growth of 54% to 66% over the previous year. The company also highlighted ongoing efforts to expand its O&P distribution channel and address insurance authorization challenges to enhance its market penetration.Myomo Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Myomo Announces Board Transition with Director Departures
Positive
Apr 10, 2025
On April 10, 2025, Myomo announced that directors Amy Knapp and Yitzchak Jacobovitz will not seek re-election at the upcoming 2025 Annual Meeting. Their departure marks a transition in the company’s board, with plans to appoint new directors to enhance governance and strategic oversight. The announcement reflects confidence in Myomo’s strategic direction and financial position, with both directors expressing optimism about the company’s future, including its Medicare Part B coverage achievement for the MyoPro product.
Spark’s Take on MYO Stock
According to Spark, TipRanks’ AI Analyst, MYO is a Neutral.
Myomo’s strong revenue growth and positive earnings call sentiment are significant strengths. However, the lack of profitability, negative cash flows, and bearish technical indicators are key risks. The stock’s valuation suggests potential overvaluation, contributing to a moderate overall score.
To see Spark’s full report on MYO stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.