Breaking Down Check-Cap Ltd. (CHEK) Financial Health: Key Insights for Investors

Breaking Down Check-Cap Ltd. (CHEK) Financial Health: Key Insights for Investors

IL | Healthcare | Medical - Diagnostics & Research | NASDAQ

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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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