RxSight (RXST) AI Stock Analysis

• Market Cap: $389.52M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 27.68%
• EPS Growth: 20.87%
• Country: US
• Employees: 498
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.29
• Shares Outstanding: 40,915,962
• 10 Day Avg. Volume: 811,114
• 30 Day Avg. Volume: 1,104,338
• PEG Ratio: 0.98
• Price to Book (P/B): 4.75
• Price to Sales (P/S): 9.55
• P/FCF Ratio: -59.69
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 2.00
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: -8.90
• 1Y Price Target: $8.94
• Price Target Upside: -2.61% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 52 Neutral
• Price Target: $9.50 ▲(3.49% Upside)

RxSight's overall stock score reflects significant financial challenges, with negative profitability and cash flow metrics being the most impactful factors. Technical analysis provides a mixed outlook with short-term bullish momentum but longer-term bearish trends. Valuation remains a concern due to the negative P/E ratio and lack of dividend yield. The earnings call, while not weighted, underscores the cautious outlook with guidance for revenue decline.

Positive Factors

Innovative Product Offering

RxSight's Light Adjustable Lens technology offers a unique value proposition in vision correction, allowing personalized adjustments post-surgery. This innovation provides a competitive edge in the ophthalmology sector, potentially driving long-term adoption and revenue growth.

International Market Expansion

Regulatory approval and market entry into South Korea, along with European expansion, enhance RxSight's global footprint. This strategic move can diversify revenue streams and mitigate domestic market pressures, supporting long-term growth.

Improved Gross Margin

The increase in gross margin reflects a favorable shift towards higher-margin products, indicating improved operational efficiency. Sustaining higher margins can enhance profitability and provide financial stability over the long term.

Negative Factors

Overall Revenue Decline

A decline in overall revenue suggests challenges in market demand or competitive pressures. Persistent revenue contraction could impact cash flow and hinder the company's ability to invest in growth initiatives.

Increased Net Loss

The rising net loss indicates ongoing profitability issues, which may strain financial resources. Continued losses could limit strategic investments and necessitate cost-cutting measures, affecting long-term growth prospects.

Higher Operating Expenses

Rising operating expenses, particularly in SG&A and R&D, may pressure margins and profitability. If not managed effectively, these costs could outweigh revenue gains, impacting financial health and strategic flexibility.

RxSight Business Overview & Revenue Model

Company Description

RxSight, Inc., a medical technology company, engages in the research and development, manufacture, and sale of light adjustable intraocular lenses (LAL) used in cataract surgery in the United States and internationally. It offers RxSight system that enables doctors to customize and enhance the visual acuity for patients after cataract surgery. The company's RxSight system includes RxSight light delivery device, an office-based light treatment device that delivers UV light in a programmed pattern to modify the LAL based on the visual correction needed to achieve desired vision after cataract surgery. It primarily serves cataract doctors. The company was formerly known as Calhoun Vision, Inc. and changed its name to RxSight, Inc. in February 2017. RxSight, Inc. was incorporated in 1997 and is headquartered in Aliso Viejo, California.

How the Company Makes Money

RxSight generates revenue primarily through the sale of its proprietary light-adjustable lenses and the associated delivery system used by ophthalmic surgeons. The company earns income from both direct sales of lenses and from the leasing or selling of the equipment used to adjust the lenses after implantation. Additionally, RxSight may receive revenue from service agreements related to the maintenance of its technology and training programs for healthcare professionals. Strategic partnerships with hospitals and surgical centers also bolster its market reach and revenue potential, as they facilitate wider adoption of its innovative products in the ophthalmology market.

RxSight Financial Statement Overview

Summary

RxSight faces significant financial challenges, with negative profitability and cash flow metrics. The company shows some strengths in its balance sheet with low leverage and a strong equity position. However, the negative revenue growth and profitability margins indicate operational difficulties that need addressing. The cash flow situation, while showing some improvement, still reflects the need for better cash management and operational efficiency to achieve sustainable growth.

Income Statement

RxSight's income statement reveals a challenging financial position with negative net profit margins and declining revenue growth. The TTM data shows a gross profit margin of 68.42%, indicating some efficiency in managing production costs. However, the net profit margin is negative at -20.52%, highlighting ongoing profitability issues. Revenue growth has turned negative, with a significant decline of 78.9% in the TTM period, suggesting potential market challenges or operational inefficiencies. The EBIT and EBITDA margins are also negative, indicating struggles in covering operating expenses and depreciation.

Balance Sheet

The balance sheet of RxSight shows a relatively low debt-to-equity ratio of 0.042, suggesting conservative leverage and a strong equity base. However, the return on equity is negative at -11.56%, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio is healthy, with stockholders' equity making up a significant portion of total assets, reflecting financial stability despite ongoing losses.

Cash Flow

RxSight's cash flow statement indicates challenges in generating positive cash flows. The operating cash flow is negative, and the free cash flow growth rate is positive at 137.4%, suggesting some improvement in cash flow management. However, the operating cash flow to net income ratio is negative, indicating that the company is not converting its net income into cash effectively. The free cash flow to net income ratio is above 1, showing that free cash flow exceeds net income, which is a positive sign of cash flow efficiency despite overall negative cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	157.15M	139.93M	89.08M	49.01M	22.59M	14.68M
Gross Profit	107.53M	98.94M	53.77M	21.33M	4.52M	1.71M
EBITDA	-35.25M	-23.76M	-41.04M	-57.78M	-41.01M	32.15M
Net Income	-32.25M	-27.45M	-48.61M	-66.76M	-48.69M	27.57M
Balance Sheet
Total Assets	309.01M	318.56M	182.55M	150.16M	192.72M	100.68M
Cash, Cash Equivalents and Short-Term Investments	227.49M	237.22M	127.18M	105.80M	159.33M	68.97M
Total Debt	11.71M	12.30M	3.01M	44.99M	44.93M	30.75M
Total Liabilities	31.00M	37.33M	22.19M	60.26M	54.48M	398.21M
Stockholders Equity	278.01M	281.24M	160.36M	89.90M	138.24M	55.77M
Cash Flow
Free Cash Flow	-20.88M	-22.39M	-46.41M	-61.24M	-46.65M	-37.74M
Operating Cash Flow	-16.82M	-16.95M	-41.59M	-58.85M	-44.71M	-35.20M
Investing Cash Flow	27.57M	-99.31M	-22.13M	39.95M	-81.91M	15.59M
Financing Cash Flow	5.18M	123.32M	61.52M	6.33M	137.34M	25.24M

RxSight Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.18
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RXST, the sentiment is Positive. The current price of 9.18 is above the 20-day moving average (MA) of 9.14, above the 50-day MA of 8.39, and below the 200-day MA of 19.71, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 45.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RXST.

RxSight Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCTH	64 Neutral	385.84M	242.42	2.13%	―	491.35%	―
BFLY	55 Neutral	521.10M	-7.41	-42.94%	―	23.13%	46.62%
RXST	52 Neutral	$389.52M	―	-11.66%	―	27.68%	20.87%
NPCE	52 Neutral	338.09M	-12.27	-338.71%	―	23.32%	23.29%
CBLL	52 Neutral	447.67M	-8.89	-21.16%	―	―	―
SENS	46 Neutral	382.90M	-4.59	-327.88%	―	5.94%	25.16%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%