Zynex (ZYXI) AI Stock Analysis

• Market Cap: $74.69M
• Dividend Yield: N/A
• Average Volume (3M): 204.38K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.33
• Revenue Growth: -8.63%
• EPS Growth: -202.31%
• Country: US
• Employees: 1,000
• Sector: Healthcare
• Sector Strength: 44
• Industry: Medical - Distribution
• EPS (TTM): -0.33
• Shares Outstanding: 30,238,876
• 10 Day Avg. Volume: 135,479
• 30 Day Avg. Volume: 204,376
• PEG Ratio: 0.02
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -141.30
• 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: $6.00
• Price Target Upside: 142.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 42 Neutral
• Price Target: $2.00 ▼( -19.03% Downside)

Zynex's overall stock score reflects its challenging financial position, marked by declining revenues, profitability, and cash flow issues. While technical analysis indicates bearish momentum, the earnings call and corporate events offer some long-term growth potential through product innovation and cost management strategies. However, significant risks remain due to current financial instability and valuation concerns.

Positive Factors

Financial Stability

The company has sufficient capital to fund its operations for the upcoming year, with $39.6M in cash at the end of December 2024.

New Market Entry

If cleared by the FDA, NiCO would allow Zynex to enter the multi-billion dollar pulse oximetry market with differentiating precision and accuracy.

Product Innovation

The NiCO pulse oximeter uses laser-based technology to measure hemoglobin accurately, even in populations with darker skin pigmentation, which is a significant improvement over current LED pulse oximeters.

Negative Factors

Earnings Performance

Total revenue was $26.6M, representing a 43% YoY decline and missing the projection of $31.5M.

Net Loss

Net loss was $10.4M, or ($0.33) per share, which is more than the estimated loss of $6.3M.

Regulatory Risks

There is a potential risk of inability to secure regulatory clearance for other medical devices.

Zynex Business Overview & Revenue Model

Company Description

Zynex, Inc., through its subsidiaries, designs, manufactures, and markets medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company offers NexWave, a dual channel, multi-modality interferential current, transcutaneous electrical nerve stimulation, and neuromuscular electrical stimulation (NMES) device that is marketed to physicians and therapists by field sales representatives; NeuroMove, an electromyography triggered electrical stimulation device; InWave, an electrical stimulation product for the treatment of female urinary incontinence; and E-Wave, an NMES device. It also supplies private labeled products, including electrodes for the delivery of electrical current to the body, and batteries for use in electrotherapy products. In addition, the company distributes Comfortrac/Saunders for cervical traction, JetStream for hot/cold therapy, LSO Back Braces for lumbar support, and knee braces for knee support. Further, it offers Zynex Fluid Monitoring System (CM-1500), a fluid volume monitor, which is a non-invasive medical device for monitoring relative fluid volume changes used in operating and recovery rooms to detect fluid loss during surgery and internal bleeding during recovery; Zynex Wireless Fluid Monitoring System (CM-1600), a noninvasive monitoring device designed to measure relative changes in fluid volume in adult patients; NiCO CO-Oximeter, a laser-based noninvasive co-oximeter; and HemeOx tHb Oximeter, a laser-based total hemoglobin pulse oximeter. The company provides its products for use in pain management and control; stroke and spinal cord injury rehabilitation; hemodynamic monitoring; and pulse oximetry monitoring. It sells its products through direct sales force primarily in the United States. Zynex, Inc. was founded in 1996 and is headquartered in Englewood, Colorado.

How the Company Makes Money

Zynex makes money through the sale and rental of its proprietary medical devices. The company generates revenue primarily from direct sales to healthcare providers, clinics, and patients, as well as through rentals of its devices. A significant portion of Zynex's revenue comes from insurance reimbursements for the use of its products, which are prescribed by healthcare professionals. The company also benefits from recurring revenue through consumable supplies and accessories related to its devices. Additionally, Zynex has established partnerships and distribution agreements to expand its reach within the medical device market, further contributing to its earnings.

Zynex Financial Statement Overview

Summary

Zynex is facing significant financial challenges. Declining revenue and net income, negative profitability margins, high leverage, and deteriorating cash flow are concerning. Strategic interventions on revenue growth and cost control are essential.

Income Statement

Zynex's income statement shows a troubling trajectory with declining revenue and net income in the TTM period. Gross Profit Margin remains relatively strong at 77.7% TTM, but significant drops in EBIT and EBITDA margins to negative values signal operational challenges. The revenue growth rate has been negative in the most recent period, indicating potential demand issues. Continued focus on cost management and revenue recovery is essential.

Balance Sheet

The balance sheet highlights a high debt-to-equity ratio of 3.52, indicating substantial leverage and potential financial risk. Equity ratio is low at 19.6%, reflecting high reliance on debt financing. Return on Equity has turned negative, further highlighting financial stress. Improvement in financial structure is needed to enhance stability.

Cash Flow

Cash flow analysis reveals a concerning negative free cash flow in the TTM period, coupled with a significant decrease in operating cash flow. The free cash flow to net income ratio is unfavorable, indicating cash generation issues. Enhanced cash management and operational efficiency are critical to reversing this trend.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
172.40M	192.35M	184.32M	158.17M	130.30M	80.12M
	Gross Profit
133.90M	152.93M	145.96M	126.16M	102.98M	62.70M
	EBIT
-7.63M	5.99M	10.78M	22.94M	22.37M	10.25M
	EBITDA
-4.27M	10.79M	17.89M	26.18M	22.37M	11.75M
	Net Income Common Stockholders
-7.41M	2.99M	9.73M	17.05M	17.10M	9.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
32.86M	39.63M	44.58M	20.14M	42.61M	39.17M
	Total Assets
126.22M	122.08M	136.90M	116.47M	133.27M	72.17M
	Total Debt
75.43M	73.82M	76.17M	26.96M	35.09M	7.33M
	Net Debt
42.57M	34.19M	31.59M	6.82M	-7.52M	-31.84M
	Total Liabilities
93.13M	86.37M	90.78M	50.11M	59.35M	15.32M
	Stockholders Equity
33.10M	35.71M	46.13M	66.36M	73.92M	56.85M
Cash Flow		Free Cash Flow
-443.00K	12.14M	16.55M	13.33M	6.34M	-167.00K
	Operating Cash Flow
150.00K	12.72M	17.76M	13.75M	6.95M	818.00K
	Investing Cash Flow
-593.00K	-578.00K	-966.00K	-418.00K	-16.61M	-985.00K
	Financing Cash Flow
-8.57M	-17.09M	7.64M	-35.80M	13.10M	25.30M

Zynex Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.47
• 50DMA: Negative
• 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 ZYXI, the sentiment is Negative. The current price of 2.47 is above the 20-day moving average (MA) of 2.20, above the 50-day MA of 2.34, and below the 200-day MA of 6.58, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 69.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZYXI.

Zynex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSIC	74 Outperform	$8.74B	22.73	11.78%	―	1.75%	8.76%
PBH	74 Outperform	$4.39B	20.43	12.30%	―	1.10%	2.65%
PDCO	70 Outperform	$2.77B	20.21	14.15%	2.49%	-0.85%	-23.40%
Sector *	53 Neutral	$5.24B	3.07	-43.58%	2.80%	16.87%	-0.11%
OMI	47 Neutral	$543.19M	―	-49.91%	―	2.84%	-828.91%
GRDN	47 Neutral	$1.68B	―		―	―	―
ZYXI	42 Neutral	$74.69M	24.14	-27.52%	―	-8.63%	-202.31%

Zynex Corporate Events

Zynex Elects New Directors at Annual Meeting

On May 15, 2025, Zynex, Inc. held its Annual Meeting of Stockholders in Englewood, Colorado, where key decisions were made regarding the company’s leadership and financial oversight. Thomas Sandgaard, Barry D. Michaels, Michael Cress, and Joshua R. Disbrow were elected as directors, and the appointment of CBIZ CPAs P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified, indicating a stable governance structure for the company moving forward.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.

Zynex Submits 510(k) for NiCO™ CO-Oximeter

On May 12, 2025, Zynex, Inc. announced the submission of a 510(k) application to the FDA for its NiCO™ Noninvasive CO-Oximeter device, marking a significant milestone in pulse oximetry technology. This device addresses the inaccuracies of traditional pulse oximeters, particularly in patients with darker skin, by using laser technology to provide more accurate oxygen and carbon monoxide measurements. This advancement is expected to revolutionize patient monitoring and improve clinical outcomes by providing reliable data for early detection of hypoxia and hyperoxia, thus enhancing patient care and reducing costs.

The most recent analyst rating on (ZYXI) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Zynex stock, see the ZYXI Stock Forecast page.