SS Innovations International Stock To $4?
SS Innovations International (SSII) stock has jumped 9.7% during the past day, and is currently trading at $5.68. Our multi-factor assessment suggests that it may be time to sell SSII stock. We have, overall, a pessimistic view of the stock, and a price of $4 may not be out of reach. We believe there are only a couple of things to fear in SSII stock given its overall Moderate operating performance and financial condition. But keeping in mind its Very High valuation, we think that the stock is Unattractive.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Very High |
| What you get: | |
| Growth | Very Strong |
| Profitability | Very Weak |
| Financial Stability | Strong |
| Downturn Resilience | N/A |
| Operating Performance | Moderate |
| Stock Opinion | Unattractive |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $1.1 Bil in market cap, SS Innovations International provides development and manufacturing of medical surgical devices, partnering with the University of Central Florida to advance navigation and control technologies in medical robotics.
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[1] Valuation Looks Very High
| SSII | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 29.8 | 3.2 |
| Price-to-Earnings Ratio | -92.8 | 23.4 |
| Price-to-Free Cash Flow Ratio | -48.1 | 20.6 |
This table highlights how SSII is valued vs broader market. For more details see: SSII Valuation Ratios
[2] Growth Is Very Strong
- SS Innovations International has seen its top line grow at an average rate of 410.3% over the last 3 years
- Its revenues have grown 158% from $14 Mil to $36 Mil in the last 12 months
- Also, its quarterly revenues grew 192.5% to $13 Mil in the most recent quarter from $4.4 Mil a year ago.
| SSII | S&P 500 | |
|---|---|---|
| 3-Year Average | 410.3% | 5.6% |
| Latest Twelve Months* | 158.4% | 6.2% |
| Most Recent Quarter (YoY)* | 192.5% | 7.3% |
This table highlights how SSII is growing vs broader market. For more details see: SSII Revenue Comparison
[3] Profitability Appears Very Weak
- SSII last 12 month operating income was $-9.5 Mil representing operating margin of -26.3%
- With cash flow margin of -56.2%, it generated nearly $-20 Mil in operating cash flow over this period
- For the same period, SSII generated nearly $-12 Mil in net income, suggesting net margin of about -32.1%
| SSII | S&P 500 | |
|---|---|---|
| Current Operating Margin | -26.3% | 18.8% |
| Current OCF Margin | -56.2% | 20.6% |
| Current Net Income Margin | -32.1% | 13.1% |
This table highlights how SSII profitability vs broader market. For more details see: SSII Operating Income Comparison
[4] Financial Stability Looks Strong
- SSII Debt was $13 Mil at the end of the most recent quarter, while its current Market Cap is $1.1 Bil. This implies Debt-to-Equity Ratio of 1.2%
- SSII Cash (including cash equivalents) makes up $5.7 Mil of $70 Mil in total Assets. This yields a Cash-to-Assets Ratio of 8.2%
| SSII | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 1.2% | 20.6% |
| Current Cash-to-Assets Ratio | 8.2% | 7.2% |
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