Breaking Down Surmodics, Inc. (SRDX) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for a comprehensive analysis of Surmodics, Inc.'s financial standing? Did you know that Surmodics reported a total revenue of $126.1 million for fiscal year 2024? While this reflects a decrease from the previous year, excluding SurVeil™ drug-coated balloon (DCB) license fee revenue, their total revenue actually increased by 17% year-over-year, reaching $121.0 million. With a GAAP net loss of $(11.5) million and an adjusted EBITDA of $14.7 million, understanding the key drivers behind these figures is crucial for making informed investment decisions. How might the pending acquisition by GTCR for $43.00 per share, representing an approximate equity value of $627 million, impact future performance? Let's dive into the details to uncover the insights you need.

Surmodics, Inc. (SRDX) Revenue Analysis

Surmodics, Inc. (SRDX) is a leading provider of surface modification technologies for intravascular medical devices and chemical components for in vitro diagnostic tests and microfluidic medical devices. A detailed look into their revenue streams provides crucial insights for investors.

Here's a breakdown of Surmodics, Inc.'s revenue composition:

• Products: Primarily consisting of surface modification technologies and IVD components.
• Services: Including coating services and development work related to their technologies.
• Regions: Revenue is generated globally, with a significant portion coming from the United States.

Analyzing year-over-year revenue growth rates provides a perspective on Surmodics, Inc.'s performance. The growth rate reflects the company's ability to expand its market presence and capitalize on industry trends.

A breakdown of revenue by business segment is essential to understand which areas are driving growth. Surmodics, Inc. operates primarily in two segments:

• Medical Device: Focuses on surface modification technologies for medical devices.
• In Vitro Diagnostics (IVD): Concentrates on providing chemical and biological components.

For example, consider a scenario where the Medical Device segment shows a 15% increase in revenue due to new product adoption, while the IVD segment remains stable. This indicates the Medical Device segment is a significant growth driver.

Significant changes in revenue streams often stem from factors such as:

• Acquisitions: Integrating new businesses can lead to increased revenue.
• New Product Launches: Innovative products can drive sales growth.
• Regulatory Changes: Shifts in regulations can impact demand for certain products.
• Market Dynamics: Changes in market conditions and competitive pressures.

For instance, if Surmodics, Inc. introduces a new coating technology that significantly improves the performance of medical devices, this could lead to a substantial increase in revenue from the Medical Device segment. Conversely, increased competition in the IVD components market could negatively impact revenue from that segment.

Here is a sample table illustrating potential revenue contributions from different segments (This is an example and not actual data):

Understanding these dynamics is crucial for investors assessing Surmodics, Inc.'s financial health and growth potential.

More details can be found here: Breaking Down Surmodics, Inc. (SRDX) Financial Health: Key Insights for Investors

Surmodics, Inc. (SRDX) Profitability Metrics

Analyzing Surmodics, Inc.'s profitability involves scrutinizing its gross profit, operating profit, and net profit margins to gauge its financial health and operational efficiency. Trends in these metrics over time provide insights into the company's ability to manage costs and generate profits. A comparative analysis against industry averages helps contextualize Surmodics' performance and identify areas of strength or weakness. For a broader view, read about Breaking Down Surmodics, Inc. (SRDX) Financial Health: Key Insights for Investors.

Here's a breakdown of key profitability metrics based on the 2024 fiscal year data:

• Gross Profit: Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.
• Operating Profit: This is the profit earned from a company's normal business operations. It's calculated as gross profit less operating expenses.
• Net Profit Margin: The percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends (but not extraordinary items) have been deducted from a company's total revenue.

To provide a clearer picture, a table summarizing these metrics would be beneficial. Note that the specific values for Surmodics, Inc. would be inserted based on their 2024 financial reports.

Analyzing operational efficiency involves examining cost management strategies and gross margin trends. Effective cost management directly impacts profitability. For example, a rising gross margin indicates that Surmodics, Inc. is becoming more efficient in managing its production costs or is able to command higher prices for its products.

Surmodics, Inc. (SRDX) Debt vs. Equity Structure

Understanding how Surmodics, Inc. (SRDX) finances its operations and growth is crucial for investors. This involves looking at the interplay between its debt and equity, which provides insights into the company's financial leverage and risk profile. Here's a breakdown:

As of the third quarter of fiscal year 2024, Surmodics, Inc. (SRDX) showcased the following financial highlights:

• Cash and investments totaled $44.8 million.
• Total debt equaled $24.7 million.

Debt Levels: Surmodics, Inc. (SRDX) carries both long-term and short-term debt. Monitoring these levels helps in assessing the company's obligations and liquidity. As of their latest financial reporting:

• The company had a total debt of $24.7 million.
• Specifically, there was $24.7 million outstanding in the term loan.

Debt-to-Equity Ratio: The debt-to-equity ratio is a key metric used to evaluate a company's financial leverage. It indicates how much debt Surmodics, Inc. (SRDX) is using to finance its assets relative to the value of shareholders' equity. Unfortunately, the exact equity value was not available in the provided context, preventing a precise calculation of this ratio. However, we can analyze the implications based on available data.

Given the total debt of $24.7 million and cash and investments of $44.8 million, Surmodics, Inc. (SRDX) appears to be in a manageable debt position. Without the equity figure, a direct comparison to industry standards is challenging. Ideally, a moderate debt-to-equity ratio suggests a balanced approach, where the company leverages debt to enhance returns without taking on excessive risk.

Recent Debt and Financing Activities: Analyzing recent financial activities, such as debt issuances or refinancing, provides insights into Surmodics, Inc.'s (SRDX) strategic financial management. For instance, the company’s term loan plays a significant role in its capital structure.

Balancing Debt and Equity: Surmodics, Inc. (SRDX) strategically balances debt financing and equity funding to support its growth initiatives and operational needs. Effective management of this balance is vital for maintaining financial stability and flexibility.

For further insights into Surmodics, Inc. (SRDX) financial health, you can read more here: Breaking Down Surmodics, Inc. (SRDX) Financial Health: Key Insights for Investors

Surmodics, Inc. (SRDX) Liquidity and Solvency

When evaluating the financial health of Surmodics, Inc. (SRDX), assessing its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. Let's delve into key aspects of Surmodics' liquidity position.

Assessing Surmodics, Inc.'s Liquidity:

Several ratios and financial statement analyses help in understanding Surmodics' liquidity. These include:

• Current and Quick Ratios: These ratios provide insights into Surmodics' ability to cover its short-term liabilities with its short-term assets.
• Analysis of Working Capital Trends: Monitoring the trend of Surmodics' working capital (the difference between current assets and current liabilities) can reveal whether the company's liquidity position is improving or deteriorating.
• Cash Flow Statements Overview: Examining Surmodics' cash flow statements, particularly trends in operating, investing, and financing cash flows, offers a comprehensive view of the company's cash generation and usage.

Key Liquidity Ratios

For the fiscal year 2024, Surmodics' liquidity ratios present the following picture:

• The current ratio for September 2024 is 3.96.
• The quick ratio for September 2024 is 3.22.

These ratios suggest a strong liquidity position. A current ratio of 3.96 indicates that Surmodics has $3.96 of current assets for every $1 of current liabilities. Similarly, a quick ratio of 3.22 suggests that the company has $3.22 of highly liquid assets to cover each dollar of current liabilities.

Working Capital

Surmodics' net current asset value, also known as working capital, was reported as $21.64 million in September 2024.

Cash Flow Analysis

Cash flow statements provide a deeper understanding of Surmodics' liquidity. For the fiscal year 2025, Surmodics' free cash flow was $0.75 million for Q1. The free cash flow for the 2025 fiscal year decreased by $, and the operating cash flow was $-0.07 million.

Potential Liquidity Concerns or Strengths

Based on the data available, Surmodics exhibits several strengths in its liquidity position:

• High current and quick ratios, suggesting a strong ability to meet short-term obligations.

To gain more insights into Surmodics, Inc., refer to: Mission Statement, Vision, & Core Values of Surmodics, Inc. (SRDX).

Surmodics, Inc. (SRDX) Valuation Analysis

Assessing whether Surmodics, Inc. (SRDX) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. Let's delve into these critical areas to provide a clearer picture for investors.

Key valuation ratios provide a snapshot of the company's relative worth:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share (EPS). As of now, a recent P/E ratio isn't available due to negative earnings.
• Price-to-Book (P/B) Ratio: The P/B ratio, which compares a company's market capitalization to its book value, is currently at 2.7x.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares the total value of the company to its earnings before interest, taxes, depreciation, and amortization. As of December 31, 2023, the EV/EBITDA was -21.6x.

Analyzing the stock price trends provides insight into market sentiment and historical performance:

• Over the past year, Surmodics' stock has shown significant volatility. As of April 18, 2025, the stock was trading around $35.47.
• The stock's 52-week range has been between $18.45 and $44.44, indicating substantial price fluctuation.

Dividend yield and payout ratios are essential metrics for income-focused investors. However, Surmodics does not currently offer a dividend. Therefore, these metrics are not applicable.

Analyst consensus can offer a consolidated view on the stock's potential valuation:

• The consensus among analysts is that Surmodics has a hold rating.
• The average price target is around $44.00, suggesting a potential upside from the current trading price.

Here's a summary table of Surmodics' key financial data:

To gain a deeper understanding of who is investing in Surmodics and why, check out: Exploring Surmodics, Inc. (SRDX) Investor Profile: Who’s Buying and Why?

Surmodics, Inc. (SRDX) Risk Factors

Several factors, both internal and external, could significantly impact Surmodics, Inc.'s financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their financial reports.

Here's an overview of potential risks:

• Industry Competition: The medical device and technology industries are intensely competitive. Surmodics faces competition from larger companies with greater resources, potentially affecting their market share and profitability.
• Regulatory Changes: Medical devices are subject to strict regulatory oversight. Changes in regulations by bodies like the FDA could increase compliance costs, delay product approvals, and impact revenue.
• Market Conditions: Economic downturns or shifts in healthcare spending could reduce demand for Surmodics' products, affecting sales and financial performance.

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

• Reliance on Key Products: Surmodics may depend heavily on a few key products. Failure of these products or increased competition could significantly reduce revenue.
• R&D and Innovation Risks: Investing in research and development is crucial, but there's no guarantee that these investments will yield successful products. Unsuccessful R&D could lead to financial losses.
• Acquisition and Integration Risks: Surmodics' acquisition of assets and businesses involves risks related to integrating operations, cultures, and technologies, which could impact financial performance if not managed effectively.
• Customer Concentration: A significant portion of Surmodics' revenue may come from a limited number of customers. Losing one or more of these key customers could adversely affect their financial stability.

While specific mitigation strategies are not detailed here, companies like Surmodics typically employ several approaches to manage these risks:

• Diversification: Expanding product lines and entering new markets to reduce reliance on specific products or regions.
• Compliance Programs: Implementing robust compliance programs to navigate regulatory changes and ensure adherence to standards.
• Strategic Partnerships: Forming alliances to share resources, access new technologies, and expand market reach.
• Financial Planning: Maintaining a strong balance sheet with sufficient cash reserves to weather economic uncertainties.

For more insights into Surmodics, Inc.'s financial health, check out: Breaking Down Surmodics, Inc. (SRDX) Financial Health: Key Insights for Investors

Surmodics, Inc. (SRDX) Growth Opportunities

To assess Surmodics, Inc.'s (SRDX) future, several growth drivers, strategic initiatives, and competitive advantages should be considered.

Key growth drivers for Surmodics, Inc. (SRDX) include:

• Product Innovation: Surmodics, Inc.'s focus on developing innovative surface modification technologies and drug delivery systems for medical devices is a primary driver.
• Market Expansion: Expanding into new geographic markets and applications for their technologies can significantly boost revenue.
• Acquisitions: Strategic acquisitions of complementary businesses or technologies could enhance their product offerings and market position.

While specific future revenue growth projections and earnings estimates for Surmodics, Inc. (SRDX) are not available in the provided search results, here are some general considerations:

• Analysts' consensus estimates, typically available from financial data providers, would offer insights into expected revenue growth.
• Surmodics, Inc.'s own financial guidance, if available, would provide management's expectations for future performance.

Strategic initiatives and partnerships that may drive future growth for Surmodics, Inc. (SRDX) include:

• Collaborations with medical device companies to incorporate Surmodics, Inc.'s technologies into their products.
• Research and development investments in new product areas.

Surmodics, Inc. (SRDX) possesses several competitive advantages that position it for growth:

• Proprietary Technologies: Surmodics, Inc.'s patented surface modification technologies provide a competitive edge.
• Established Relationships: Long-standing relationships with medical device manufacturers offer a stable customer base.
• Expertise: Surmodics, Inc.'s deep understanding of surface chemistry and polymer science supports its innovation efforts.

For more detailed financial insights, refer to: Breaking Down Surmodics, Inc. (SRDX) Financial Health: Key Insights for Investors