Breaking Down InspireMD, Inc. (NSPR) Financial Health: Key Insights for Investors

Are you keeping a close watch on InspireMD, Inc. (NSPR) and wondering about its financial stability? Let's delve into the key insights from their 2024 fiscal year. The company reported a 13% increase in revenue, reaching $7.01 million, with Q4 revenue hitting a record $1.95 million. But, the gross margin decreased to 21.5%. Operating expenses also significantly increased by 55.8% in Q4, totaling $9.84 million. With $34.64 million in cash and marketable securities at the end of 2024, how well-positioned is InspireMD for future growth? Read on to find out!

InspireMD, Inc. (NSPR) Revenue Analysis

Analyzing InspireMD, Inc.'s (NSPR) revenue streams involves understanding where the company's income originates, how it has changed over time, and the relative importance of each revenue source. This provides investors with insights into the company's business model and growth trajectory.

Here's a breakdown of what to consider:

• Primary Revenue Sources: InspireMD, Inc. generates revenue primarily through the sales of its medical devices. These devices are used in various medical procedures.
• Year-over-Year Revenue Growth Rate: Examining the year-over-year revenue growth rate reveals the company's ability to increase sales. Recent financial data is essential to gauge current performance.
• Contribution of Business Segments: It is important to identify which segments contribute the most to the overall revenue.
• Significant Changes in Revenue Streams: Any shifts in revenue streams, such as new products or changing regional sales, should be analyzed to understand their impact on the company's financial health.

To provide a more concrete understanding, a detailed analysis using the latest financial reports would be necessary. Consider the following illustrative (but not real) data table for fiscal year 2024:

Based on this hypothetical data, product sales constitute the majority of InspireMD, Inc.'s revenue, with MGuard Prime being the primary driver. Service revenue makes up a smaller portion of the total.

Investors should also monitor the geographic distribution of revenue. For example, if InspireMD, Inc. generates a significant portion of its revenue from Europe, economic conditions or regulatory changes in that region could significantly impact its financial performance.

Keep an eye on how new products, like the CGuard Embolic Prevention System (EPS), are contributing to revenue. An increasing contribution from newer products can indicate successful innovation and market adoption.

For further insights into InspireMD, Inc. (NSPR) and its investors, consider exploring: Exploring InspireMD, Inc. (NSPR) Investor Profile: Who’s Buying and Why?

InspireMD, Inc. (NSPR) Profitability Metrics

Analyzing InspireMD, Inc.'s profitability involves examining several key metrics to understand its financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, which provide insights into the company's ability to generate earnings from its revenue.

Gross profit is the revenue a company retains after deducting the costs associated with producing and selling its goods or services. For InspireMD, monitoring the gross profit margin—calculated as gross profit divided by total revenue—reveals how efficiently the company manages its production costs. Trends in gross margin can indicate improvements in operational efficiency or challenges in cost control.

Operating profit, also known as earnings before interest and taxes (EBIT), is a crucial measure of a company’s profitability from its core business operations. It is calculated by subtracting operating expenses (such as sales, general, and administrative expenses) from gross profit. The operating profit margin (operating profit divided by total revenue) indicates how well InspireMD manages its operational costs and generates profit from its primary activities. A rising operating profit margin typically suggests improved operational efficiency, while a declining margin may signal increased expenses or pricing pressures.

Net profit represents the actual profit earned by InspireMD after deducting all expenses, including interest and taxes. The net profit margin (net profit divided by total revenue) is a comprehensive measure of overall profitability. It reflects the percentage of revenue that ultimately becomes profit for the company's owners. Investors often scrutinize the net profit margin to assess the financial health and sustainability of InspireMD's earnings.

When evaluating InspireMD's profitability, comparing its profitability ratios with industry averages is essential. This comparison provides context and helps determine whether the company's performance is in line with or exceeds that of its peers. Industry-specific factors, such as competitive pressures, regulatory requirements, and market trends, can influence profitability, making relative comparisons valuable.

Analysis of operational efficiency involves examining how well InspireMD manages its costs and optimizes its resources to generate profit. Key areas to consider include cost management practices, pricing strategies, and supply chain efficiency. For example, a growing gross margin may indicate effective cost control measures or successful pricing strategies, while a declining margin may suggest inefficiencies or increased costs.

Keep in mind that financial data is dynamic and reflects specific reporting periods. For the most up-to-date figures, consult InspireMD's latest financial statements and investor relations materials.

While specific figures for the fiscal year 2024 are not available, staying informed on these metrics through official releases will offer a clearer view of InspireMD's financial trajectory. Monitoring these trends over time provides valuable insights into InspireMD's ability to sustain and improve its profitability.

InspireMD, Inc. (NSPR) Debt vs. Equity Structure

Understanding how InspireMD, Inc. (NSPR) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically balances debt and equity financing. Let's delve into these key aspects.

As of the fiscal year 2024, InspireMD, Inc. (NSPR), showcases the following financial highlights:

The company's financial data reveals insights into its debt management and capital structure. As of December 31, 2023, InspireMD reported:

• Total cash: $7.8 million
• Total current assets: $11.6 million
• Total assets: $14.9 million
• Total current liabilities: $4.7 million
• Total liabilities: $6.6 million
• Stockholders' equity: $8.3 million

The company's debt structure includes both short-term and long-term liabilities. Understanding the composition of these debts is essential for assessing InspireMD's financial risk.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. A high ratio suggests a greater reliance on debt, which can increase financial risk, while a lower ratio indicates a more conservative approach.

The debt-to-equity ratio can be calculated using the following formula:

Debt-to-Equity Ratio = Total Liabilities / Total Stockholders' Equity

Based on the 2023 data, InspireMD's debt-to-equity ratio is calculated as follows:

Debt-to-Equity Ratio = $6.6 million / $8.3 million = 0.795

A debt-to-equity ratio of approximately 0.795 suggests that InspireMD has a moderate level of debt relative to its equity. To put this into perspective, it's important to compare this ratio to industry standards and competitors. Different industries have different norms regarding debt levels. Generally, a ratio below 1.0 is considered relatively conservative, while a ratio above 2.0 might indicate higher financial leverage.

Recent financial activities, such as debt issuances or refinancing, can significantly impact a company's capital structure. Keeping track of these activities provides insights into how InspireMD manages its debt obligations and optimizes its financing strategy.

Balancing debt and equity financing is a strategic decision for companies. Debt financing can provide capital for growth without diluting ownership, but it also comes with the obligation to repay the principal and interest. Equity financing, on the other hand, doesn't require repayment but dilutes existing ownership.

InspireMD's approach to balancing debt and equity likely reflects its growth strategy, risk tolerance, and access to capital markets. Monitoring these factors can help investors understand the company's financial flexibility and long-term sustainability.

For further insights into the strategic direction of InspireMD, Inc. (NSPR), explore their Mission Statement, Vision, & Core Values of InspireMD, Inc. (NSPR).

InspireMD, Inc. (NSPR) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For InspireMD, Inc. (NSPR), analyzing these metrics provides insights into its financial stability and potential risks. Here’s an overview of InspireMD's liquidity based on the latest available data.

Assessing InspireMD, Inc.'s Liquidity:

Current and Quick Ratios: These ratios measure a company's ability to cover its short-term liabilities with its short-term assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventory from current assets to provide a more conservative measure. For InspireMD, a review of recent financial statements will show these ratios, helping investors understand the company’s immediate financial health. Based on the 2024 fiscal year, these ratios provide a snapshot of whether InspireMD has sufficient liquid assets to handle its short-term debts.

Analysis of Working Capital Trends: Working capital, defined as the difference between current assets and current liabilities, indicates a company's operational liquidity. Monitoring the trends in InspireMD’s working capital helps to identify whether the company is efficiently managing its short-term resources. A positive and increasing working capital trend generally suggests improved liquidity, while a negative or declining trend may signal potential issues. Reviewing InspireMD's working capital over the past few years offers insights into its liquidity management strategies.

Cash Flow Statements Overview:

Cash flow statements provide a detailed look at how a company generates and uses cash through its operating, investing, and financing activities. Analyzing these cash flow trends for InspireMD can reveal important information about its liquidity:

• Operating Cash Flow: This indicates the cash generated from the company's core business operations. Consistent positive operating cash flow is a sign of a healthy, sustainable business.
• Investing Cash Flow: This involves cash used for investments in assets like property, plant, and equipment (PP&E). Negative investing cash flow might indicate strategic investments for future growth.
• Financing Cash Flow: This reflects cash flow related to debt, equity, and dividends. Positive financing cash flow could mean the company is raising capital, while negative flow might indicate debt repayment or dividend payouts.

By examining these cash flow trends, investors can better understand how InspireMD manages its cash and its overall liquidity position. For example, strong operating cash flow might offset negative investing cash flow, indicating a balanced financial strategy.

Potential Liquidity Concerns or Strengths:

Based on the analysis of the current and quick ratios, working capital trends, and cash flow statements, several potential liquidity concerns or strengths may emerge for InspireMD:

• Strengths:
  • Consistently positive operating cash flow.
  • Strategic investments in assets that promise future returns.
• Concerns:
  • Declining working capital.
  • High levels of debt impacting financing cash flow.

Investors should closely monitor these factors to assess InspireMD's ability to meet its short-term obligations and sustain its operations. Detailed financial analysis, including ratio analysis and trend analysis, is crucial for making informed investment decisions. Always refer to the company's official financial statements and reports for the most accurate and up-to-date information.

For more insights into InspireMD, Inc. (NSPR) and its investors, consider reading: Exploring InspireMD, Inc. (NSPR) Investor Profile: Who’s Buying and Why?

InspireMD, Inc. (NSPR) Valuation Analysis

Determining whether InspireMD, Inc. (NSPR) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. Let's delve into these aspects to provide a clearer picture for investors. Keep in mind that the latest financial data is crucial for an accurate assessment.

Price-to-Earnings (P/E), Price-to-Book (P/B), and Enterprise Value-to-EBITDA (EV/EBITDA) Ratios:

• P/E Ratio: As of now, a precise P/E ratio for InspireMD, Inc. (NSPR) cannot be determined due to the company's negative earnings. This renders the P/E ratio, which relies on positive earnings, inapplicable for valuation purposes.
• P/B Ratio: The Price to Book ratio for InspireMD is 3.19 as of December 31, 2023.
• EV/EBITDA Ratio: Similar to the P/E ratio, the EV/EBITDA ratio is not applicable due to negative EBITDA.

Stock Price Trends:

• Over the past year, InspireMD Inc.'s stock has shown considerable volatility. As of April 18, 2025, NSPR is trading at $0.294. The stock's 52-week range is $0.144-$1.40, reflecting substantial price swings.

Dividend Yield and Payout Ratios:

InspireMD, Inc. does not currently offer dividends. Therefore, dividend yield and payout ratios are not applicable.

Analyst Consensus:

As of right now, analyst ratings and price targets for InspireMD Inc. (NSPR) are limited. The general sentiment suggests a cautious approach, pending substantial improvements in financial performance and profitability. Investors should monitor analyst updates for any changes in recommendations as new data emerges.

Here's a summary table of InspireMD, Inc.'s valuation metrics:

In conclusion, InspireMD, Inc.'s valuation is complex, primarily due to its current financial state. Traditional valuation metrics like P/E and EV/EBITDA are not useful due to negative earnings and EBITDA. The stock's volatility and lack of dividends further complicate the valuation picture. Investors should closely monitor InspireMD's financial performance and analyst updates to make informed decisions.

Read more about InspireMD, Inc. here: Exploring InspireMD, Inc. (NSPR) Investor Profile: Who’s Buying and Why?

InspireMD, Inc. (NSPR) Risk Factors

Investing in InspireMD, Inc. (NSPR) involves navigating a landscape of potential risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics. Understanding these factors is crucial for investors aiming to make informed decisions.

Here's a breakdown of key risks:

• Industry Competition: InspireMD operates in a competitive medical device market. Successful competitors could develop more effective or cheaper solutions, reducing InspireMD's market share and revenue.
• Regulatory Changes: The medical device industry is heavily regulated. Changes in regulations, both in the U.S. and internationally, could increase compliance costs, delay product approvals, and limit market access.
• Market Conditions: Economic downturns can reduce hospital budgets, which in turn affects capital equipment purchasing decisions. InspireMD’s sales could decline if hospitals delay or cancel purchases of its products.

Operational, financial, and strategic risks, as highlighted in recent earnings reports and filings, include:

• Operational Risks: Manufacturing disruptions or quality control issues could lead to product recalls, damage the company’s reputation, and increase costs.
• Financial Risks: InspireMD may require additional funding to continue its operations. The inability to secure funding on favorable terms could limit its growth potential or even threaten its solvency.
• Strategic Risks: The failure to effectively execute its strategic goals, such as expanding into new markets or launching new products, could adversely affect its financial performance.

Mitigation strategies and plans that InspireMD may employ to address these risks could include:

• Diversifying Product Offerings: Expanding its product line to reduce reliance on a single product or market segment.
• Strengthening Supply Chain: Implementing measures to ensure a stable and reliable supply of materials and components.
• Enhancing Quality Control: Investing in quality control processes to minimize the risk of product defects and recalls.
• Building Strategic Alliances: Forming partnerships to expand its market reach and share development costs.

For additional insights into the company's strategic direction, see: Mission Statement, Vision, & Core Values of InspireMD, Inc. (NSPR).

InspireMD, Inc. (NSPR) Growth Opportunities

InspireMD, Inc. (NSPR) faces a dynamic landscape with several potential growth drivers. These include product innovation, strategic market expansions, and potential acquisitions. These factors collectively shape the trajectory for future revenue and earnings.

Analysis of key growth drivers for InspireMD, Inc. (NSPR):

• Product Innovations: InspireMD, Inc. (NSPR) has been focused on the development and commercialization of the NextGen MGuard™ Prime™ Embolic Protection System (EPS).
• Market Expansions: Expanding into new geographic markets, particularly in regions with growing demand for embolic protection devices, could significantly boost revenue.
• Strategic Initiatives and Partnerships: Strategic alliances and distribution agreements can enhance InspireMD, Inc. (NSPR)'s market reach and penetration.

Future revenue growth projections and earnings estimates for InspireMD, Inc. (NSPR) will depend on several factors such as regulatory approvals, market adoption of its products, and the effectiveness of its sales and marketing strategies. For detailed financial projections, investors should consult the company's official financial reports and investor presentations.

Competitive advantages that position InspireMD, Inc. (NSPR) for growth:

• Proprietary Technology: InspireMD, Inc. (NSPR)’s MGuard™ technology provides a unique value proposition in embolic protection.

For more insights into the company's strategic direction, see: Mission Statement, Vision, & Core Values of InspireMD, Inc. (NSPR).