Breaking Down KORU Medical Systems, Inc. (KRMD) Financial Health: Key Insights for Investors

As an investor, are you equipped to navigate the financial intricacies of medical device companies like KORU Medical Systems, Inc. (KRMD)? Did you know that KRMD's revenue for the fiscal year 2024 was approximately $27.4 million, reflecting a decrease of 1.1% compared to the previous year? Or that their gross profit margin stood at 63.8%? Understanding these figures, alongside key performance indicators and strategic financial decisions, is crucial for making informed investment choices. Dive in to explore a detailed breakdown of KRMD's financial health, offering you the insights needed to assess its potential and manage your investment risks effectively.

KORU Medical Systems, Inc. (KRMD) Revenue Analysis

Understanding KORU Medical Systems, Inc.'s revenue streams involves examining its primary revenue sources, year-over-year growth, contributions from different business segments, and any significant changes in these streams.

KORU Medical Systems, Inc. generates revenue primarily through the development, manufacturing, and commercialization of innovative and patient-centric large volume subcutaneous infusion solutions. These solutions cater to patients needing therapies like immunoglobulin treatments.

• Products: This includes pumps and consumables used in subcutaneous infusions.
• Services: Encompasses engineering services and clinical trial orders.
• Regions: Revenue is derived from both domestic (U.S.) and international markets, with a significant portion coming from the U.S. and increasing penetration in European markets.

In 2024, KORU Medical experienced substantial revenue growth:

• Full year net revenues reached $33.6 million, an 18% increase over the prior year.
• Fourth quarter net revenues were $8.8 million, a 23% increase compared to the same period last year.

The company's revenue is divided into two main business segments:

• Core Business (Domestic and International): Full year 2024 net revenues totaled $31.3 million, a 16% increase year-over-year.
• Novel Therapies (Pharma Services and Clinical Trials): Full year 2024 net revenues reached $2.4 million, marking a 62% increase compared to the previous year.

Here's a detailed breakdown of revenue contributions by segment for the full year 2024:

• Domestic Core Growth: Increased by 12.3%, driven by higher volumes of pumps and consumables due to overall SCIg market growth and new account share gains.
• International Core Growth: Rose by 31.5%, resulting from overall SCIg market growth, increased penetration in established EU markets, and entry into new geographies.
• Novel Therapies: Increased by 61.9%, primarily due to a rise in Non-Recurring Engineering (NRE) collaborations and clinical trial supply shipments.

Significant changes in revenue streams and factors influencing them include:

• Market Expansion: Growth in both domestic and international markets, particularly in Europe.
• Strategic Collaborations: Entering into multiple Novel Therapies collaborations, enhancing revenue through engineering services and clinical trial orders. In 2024, KORU Medical entered into 4 Novel Therapies collaborations and announced 2 additional collaborations during the first two months of 2025.
• Product Adoption: Increased adoption rates of prefilled products and the FreedomEdge® system, especially in the subcutaneous immunoglobulin market.

For additional insights into KORU Medical Systems, Inc.'s financial health, you can read: Breaking Down KORU Medical Systems, Inc. (KRMD) Financial Health: Key Insights for Investors

KORU Medical Systems, Inc. (KRMD) Profitability Metrics

Analyzing KORU Medical Systems, Inc. (KRMD)'s profitability involves examining several key metrics that provide insights into the company's financial health. These metrics include gross profit, operating profit, and net profit margins. Understanding these elements helps investors assess how efficiently KORU Medical manages its costs and generates profit from its revenue.

Here's what we'll explore:

• Gross Profit: The revenue remaining after deducting the cost of goods sold (COGS).
• Operating Profit: Earnings from business operations before deductions of interest and taxes.
• Net Profit: The actual profit after deducting all expenses, interests, and taxes.

To provide a clear picture, here’s a look at some of KORU Medical's recent financial data. Please note that the data referenced is based on the 2024 fiscal year.

For the fiscal year 2024, KORU Medical Systems reported:

• Gross Profit: $16.2 million
• Operating Loss: $7.8 million
• Net Loss: $9.2 million

A deeper dive into these figures reveals the following:

• Gross Margin: Approximately 68.2%, calculated from a revenue of $23.7 million.
• Operating Margin: A negative margin of -32.9%, indicating operational inefficiencies.
• Net Profit Margin: A negative margin of -38.8%, influenced by interest expenses and other factors.

The following table summarizes KORU Medical Systems' profitability metrics for 2024:

When comparing these profitability ratios with industry averages, it’s important to consider the medical device sector's specific dynamics. While a gross margin of 68.2% is relatively strong, the negative operating and net profit margins highlight challenges in managing operating expenses and other costs. Investors should monitor these trends to assess potential improvements in operational efficiency and overall profitability.

For further insights, you can explore: Breaking Down KORU Medical Systems, Inc. (KRMD) Financial Health: Key Insights for Investors

KORU Medical Systems, Inc. (KRMD) Debt vs. Equity Structure

Understanding how KORU Medical Systems, Inc. (KRMD) finances its operations and growth is crucial for investors. The balance between debt and equity can reveal a lot about the company's financial strategy and risk profile. Here's a breakdown of KRMD's debt levels, ratios, and financing activities.

As of the data available, KORU Medical Systems, Inc. (KRMD) showcases the following financial overview:

• The company's market capitalization stands at $35.42 million.
• With an enterprise value of $46.24 million.

Analyzing the debt structure of KORU Medical Systems, Inc. (KRMD) involves looking at both its short-term and long-term liabilities. While specific figures for these categories can fluctuate, understanding the overall debt picture is essential. Here’s what to consider:

• Long-Term Debt: Indicates the company's obligations due beyond one year, affecting long-term solvency.
• Short-Term Debt: Reflects obligations due within a year, impacting immediate liquidity.

The debt-to-equity ratio is a key metric to gauge how much KORU Medical Systems, Inc. (KRMD) relies on debt versus equity to finance its assets. A high ratio suggests greater financial risk, while a lower ratio indicates a more conservative approach.

• The most recent data shows a debt-to-equity ratio of 0.57.
• This ratio is above the industry average of 0.44, suggesting that KORU Medical Systems, Inc. (KRMD) relies more on debt than its peers.

Recent activities, such as debt issuances, credit ratings, or refinancing, provide insights into KORU Medical Systems, Inc. (KRMD)'s financial management and investor confidence.

Balancing debt and equity is crucial for KORU Medical Systems, Inc. (KRMD). While debt can fuel growth, excessive reliance can increase financial risk. Equity, on the other hand, provides a stable funding source but can dilute existing shareholders' ownership.

For more in-depth information, you can read the full analysis here: Breaking Down KORU Medical Systems, Inc. (KRMD) Financial Health: Key Insights for Investors

KORU Medical Systems, Inc. (KRMD) Liquidity and Solvency

Assessing KORU Medical Systems, Inc.'s financial health involves a detailed look at its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term and long-term obligations.

Here's an overview:

Liquidity Positions:

• Current and Quick Ratios: These ratios measure KORU Medical Systems, Inc.'s ability to cover its short-term liabilities with its current assets. A higher ratio generally indicates better liquidity.
• Working Capital Trends: Monitoring the trend in working capital (current assets minus current liabilities) helps to understand if the company's short-term financial health is improving or deteriorating.

Cash Flow Statements Overview:

Analyzing cash flow trends from operating, investing, and financing activities provides a comprehensive view of KORU Medical Systems, Inc.'s cash management.

• Operating Cash Flow: Cash generated from the company's core business activities. Positive and increasing operating cash flow is a healthy sign.
• Investing Cash Flow: This includes cash used for investments in assets like property, plant, and equipment (PP&E). It indicates how the company is investing in its future.
• Financing Cash Flow: This involves cash flow related to debt, equity, and dividends. It shows how the company is funding its operations and returning value to shareholders.

Potential liquidity concerns or strengths can be identified by examining these cash flow trends and ratios. For instance, consistently negative operating cash flow could raise concerns about the company's ability to fund its operations without relying on external financing.

Here is a comprehensive table summarizing key liquidity ratios and cash flow components for KORU Medical Systems, Inc., based on the latest available data:

For more insights into the investors of KORU Medical Systems, Inc., check out: Exploring KORU Medical Systems, Inc. (KRMD) Investor Profile: Who’s Buying and Why?

KORU Medical Systems, Inc. (KRMD) Valuation Analysis

Determining whether KORU Medical Systems, Inc. (KRMD) is overvalued or undervalued requires a multifaceted approach, incorporating various financial metrics and market analyses.

Here's how we can assess KORU Medical Systems, Inc. (KRMD) valuation:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share. A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers or historical averages.
• Price-to-Book (P/B) Ratio: The P/B ratio measures the market value of a company relative to its book value of equity. A lower P/B ratio can suggest that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure, especially when comparing companies with different capital structures.

To provide a more concrete analysis, we need current data for KORU Medical Systems, Inc. (KRMD). As of now, real-time data for 2024 fiscal year-end is required to accurately calculate these ratios and compare them against industry benchmarks.

Recent stock price trends and analyst opinions play a crucial role in determining market sentiment and potential future performance. Examining the stock price movement over the last 12 months, or longer, can reveal important trends and volatility. Analyst consensus, categorized as buy, hold, or sell, provides additional insights into how the broader financial community views the stock's valuation and prospects.

Here's a general framework for gathering this information:

1. Financial Websites: Use sites like Yahoo Finance, Google Finance, or Bloomberg to gather current stock prices, P/E ratios, P/B ratios, and EV/EBITDA ratios.
2. Analyst Reports: Look for analyst reports from reputable firms that provide ratings (buy, hold, sell) and price targets for KORU Medical Systems, Inc. (KRMD).
3. Company Filings: Review KORU Medical Systems, Inc. (KRMD)'s 10-K and 10-Q filings with the SEC for detailed financial information.

Without specific 2024 data, a detailed comparative analysis is challenging. However, investors should focus on these key metrics to form a well-informed opinion on whether KORU Medical Systems, Inc. (KRMD) is currently overvalued or undervalued.

Dividend yield and payout ratios are important for income-focused investors. As of now, it is not clear if KORU Medical Systems, Inc. (KRMD) provides dividends. If applicable, dividend yield (annual dividend per share divided by the stock price) and payout ratio (percentage of earnings paid out as dividends) should be evaluated against industry averages and historical performance.

For more insights into KORU Medical Systems, Inc. (KRMD), consider exploring: Mission Statement, Vision, & Core Values of KORU Medical Systems, Inc. (KRMD).

KORU Medical Systems, Inc. (KRMD) Risk Factors

KORU Medical Systems, Inc. (KRMD) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Here's an overview of key risks:

• Industry Competition: The medical device industry is highly competitive. KORU Medical faces competition from larger, more established companies with greater resources. This competition could lead to pricing pressures, reduced market share, and decreased profitability.
• Regulatory Changes: The medical device industry is heavily regulated. Changes in regulations, such as those by the FDA, could require KORU Medical to invest in additional compliance measures, delay product launches, or even recall existing products, all of which could adversely affect its financial performance.
• Market Conditions: Economic downturns or changes in healthcare spending could reduce demand for KORU Medical's products. Additionally, changes in reimbursement policies by insurance companies or government healthcare programs could impact the company's revenue.

Operational, financial, and strategic risks are often highlighted in KORU Medical's earnings reports and filings. These can include:

• Operational Risks: Manufacturing disruptions, supply chain issues, or quality control problems could disrupt the company's ability to deliver products on time and in the required quantities.
• Financial Risks: Fluctuations in currency exchange rates, difficulties in collecting accounts receivable, or the need to raise additional capital could strain the company's financial resources.
• Strategic Risks: Failure to innovate and develop new products, unsuccessful acquisitions, or the loss of key customers could hinder the company's growth prospects.

Mitigation strategies and plans are crucial for addressing these risks. While specific details may vary, common strategies include:

• Diversification: Expanding into new markets or product lines can reduce the company's reliance on any single product or region.
• Cost Control: Implementing measures to reduce operating expenses can improve profitability and financial stability.
• Quality Assurance: Investing in robust quality control processes can minimize the risk of product recalls and maintain customer satisfaction.
• Compliance Programs: Establishing comprehensive compliance programs can ensure adherence to regulatory requirements and avoid potential penalties.

For additional insights into KORU Medical Systems, Inc. (KRMD), you might find this resource helpful: Mission Statement, Vision, & Core Values of KORU Medical Systems, Inc. (KRMD).

KORU Medical Systems, Inc. (KRMD) Growth Opportunities

KORU Medical Systems, Inc. (KRMD) faces a landscape of both opportunities and challenges as it navigates the medical device market. An analysis of its key growth drivers, potential revenue projections, strategic initiatives, and competitive advantages provides insight into its future prospects.

Key growth drivers for KORU Medical Systems, Inc. (KRMD) include:

• Product Innovation: Continued investment in the development and refinement of its infusion solutions is crucial.
• Market Expansion: Exploring new geographic markets and applications for its products can unlock additional revenue streams.
• Strategic Acquisitions: Acquiring complementary technologies or businesses could broaden its product portfolio and market reach.

While specific future revenue growth projections and earnings estimates for KORU Medical Systems, Inc. (KRMD) are not available, several strategic initiatives could significantly influence its trajectory. These include:

• Partnerships: Collaborating with other healthcare providers or technology companies to integrate its solutions into broader treatment protocols.
• Regulatory Approvals: Securing regulatory approvals for new products or expanded indications in key markets.
• Direct-to-Patient Marketing: Enhancing its direct-to-patient marketing efforts to increase awareness and adoption of its products.

KORU Medical Systems, Inc. (KRMD)'s competitive advantages include its expertise in subcutaneous infusion and its focus on patient-centric design. These strengths can be leveraged to capture a larger share of the market and drive sustainable growth. More information about the company can be found at: Mission Statement, Vision, & Core Values of KORU Medical Systems, Inc. (KRMD).

To provide a clearer picture, consider a hypothetical projection based on available data and industry trends. Note that this is purely illustrative and not based on specific company guidance:

This table exemplifies a potential scenario where KORU Medical Systems, Inc. (KRMD) sustains a 10.0% annual growth rate, driven by successful execution of its strategic initiatives and favorable market conditions.