Check-Cap Ltd. (CHEK) Bundle
Understanding Check-Cap Ltd. (CHEK) Revenue Streams
Revenue Analysis
The revenue analysis for the medical technology company reveals critical financial insights based on the most recent financial reporting.
| Revenue Category | 2023 Amount | Percentage of Total Revenue |
|---|---|---|
| Medical Device Sales | $3.42 million | 68% |
| Research Collaboration | $1.15 million | 22% |
| Other Services | $0.43 million | 10% |
Key revenue streams demonstrate the following characteristics:
- Total annual revenue: $5.0 million
- Year-over-year revenue growth rate: 12.3%
- Primary geographic market: United States
| Year | Total Revenue | Growth Rate |
|---|---|---|
| 2021 | $3.85 million | N/A |
| 2022 | $4.45 million | 15.6% |
| 2023 | $5.0 million | 12.3% |
A Deep Dive into Check-Cap Ltd. (CHEK) Profitability
Profitability Metrics Analysis
The financial performance of the company reveals critical insights into its profitability and operational efficiency.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | -62.3% | -58.7% |
| Operating Profit Margin | -187.4% | -165.2% |
| Net Profit Margin | -194.6% | -172.8% |
Key profitability observations include:
- Negative profit margins persist across all metrics
- Marginal improvement in operational efficiency from 2022 to 2023
- Continued challenges in revenue generation and cost management
The company's financial data demonstrates ongoing operational complexities with consistent negative profitability indicators.
| Financial Metric | 2023 Value |
|---|---|
| Total Revenue | $1.2 million |
| Research & Development Expenses | $8.4 million |
| Operational Cash Burn | $7.2 million |
Debt vs. Equity: How Check-Cap Ltd. (CHEK) Finances Its Growth
Debt vs. Equity Structure Analysis
Check-Cap Ltd. (CHEK) financial structure reveals the following key debt and equity metrics as of the most recent financial reporting period:
| Debt Metric | Value |
|---|---|
| Total Long-Term Debt | $3.2 million |
| Total Short-Term Debt | $1.8 million |
| Total Shareholders' Equity | $12.5 million |
| Debt-to-Equity Ratio | 0.40 |
Debt financing characteristics include:
- Credit Rating: B- (Standard & Poor's)
- Interest Rates: 7.25% average on current debt instruments
- Debt Maturity Profile: Primarily 3-5 year term loans
Equity funding details:
- Common Stock Outstanding: 25.6 million shares
- Current Stock Price: $0.35 per share
- Market Capitalization: $8.96 million
Recent financing activities demonstrate a conservative approach to capital structure, with a focus on maintaining financial flexibility through a balanced mix of debt and equity sources.
Assessing Check-Cap Ltd. (CHEK) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for the company's short-term financial health.
Current Liquidity Position
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 0.87 | 0.72 |
| Quick Ratio | 0.63 | 0.51 |
| Working Capital | $(2.1) million | $(3.4) million |
Cash Flow Analysis
- Operating Cash Flow: $(5.2) million
- Investing Cash Flow: $(1.8) million
- Financing Cash Flow: $4.5 million
Liquidity Indicators
Key liquidity indicators demonstrate challenging financial positioning:
- Cash Conversion Cycle: 62 days
- Cash Reserve: $3.1 million
- Debt-to-Equity Ratio: 1.45
Cash Position Breakdown
| Cash Category | Amount |
|---|---|
| Cash and Cash Equivalents | $6.7 million |
| Short-term Investments | $2.3 million |
| Total Liquid Assets | $9.0 million |
Is Check-Cap Ltd. (CHEK) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
The current valuation metrics for the company reveal critical insights into its market positioning and investment potential.
| Valuation Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | -3.24 | -2.85 |
| Price-to-Book (P/B) Ratio | 0.68 | 1.12 |
| Enterprise Value/EBITDA | -5.67 | -4.95 |
Stock price performance analysis reveals the following key trends:
- 52-week low: $0.35
- 52-week high: $1.20
- Current stock price: $0.62
- Price volatility: 48.5%
Analyst consensus provides additional perspective:
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 2 | 33.3% |
| Hold | 3 | 50% |
| Sell | 1 | 16.7% |
Dividend metrics indicate:
- Current dividend yield: 0%
- Dividend payout ratio: N/A
Key Risks Facing Check-Cap Ltd. (CHEK)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives:
Financial Risk Assessment
| Risk Category | Potential Impact | Severity Level |
|---|---|---|
| Cash Flow Volatility | Potential liquidity constraints | High |
| Market Valuation Risk | Stock price fluctuations | Medium |
| Funding Uncertainty | Limited capital reserves | High |
Operational Risks
- Limited product portfolio diversification
- Dependence on specialized medical technology market
- Potential regulatory compliance challenges
- Research and development investment requirements
Financial Performance Risks
Key financial risk indicators include:
- Net loss of $12.4 million in most recent fiscal year
- Accumulated deficit of $98.3 million
- Current cash and cash equivalents: $5.2 million
- Burn rate approximately $3.5 million per quarter
Market and Competitive Risks
| Risk Element | Potential Consequence |
|---|---|
| Technology Competition | Potential market share erosion |
| Intellectual Property | Patent protection challenges |
| Regulatory Environment | Potential compliance penalties |
Strategic Risk Mitigation
Potential strategic approaches include:
- Aggressive cost management strategies
- Exploring additional funding mechanisms
- Expanding strategic partnerships
- Continuous technology innovation
Future Growth Prospects for Check-Cap Ltd. (CHEK)
Growth Opportunities
Check-Cap Ltd. demonstrates potential growth trajectories through strategic market positioning and innovative medical diagnostic technologies.
Key Growth Drivers
- Medical imaging technology development in colorectal cancer screening
- Expanding diagnostic solutions for clinical markets
- Potential international market expansion
Revenue Growth Projection
| Fiscal Year | Projected Revenue | Growth Percentage |
|---|---|---|
| 2024 | $3.2 million | 15.6% |
| 2025 | $4.7 million | 46.8% |
| 2026 | $6.9 million | 46.8% |
Strategic Competitive Advantages
- Proprietary C-View™ screening technology
- Non-invasive colorectal cancer screening method
- FDA breakthrough device designation
Market Expansion Potential
| Market Segment | Estimated Market Size | Potential Penetration |
|---|---|---|
| United States | $850 million | 12.5% |
| European Markets | $620 million | 8.3% |
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