Last Updated: 14 Sep 2024
Executive Summary
DarioHealth Corp. (DRIO) is a medical technology company focused on developing and commercializing digital health solutions for chronic conditions. The company's flagship product is the Dario Blood Glucose Monitoring System, a mobile-connected device that allows users to track their blood glucose levels and manage their diabetes. DRIO also offers a range of other digital health solutions, including apps for weight management, blood pressure monitoring, and medication adherence.
The company has a strong balance sheet with no debt and a market capitalization of $28.47 million. However, DRIO is currently unprofitable, with a trailing twelve-month EBITDA of -$57.96 million. The company's revenue growth has also been modest, with quarterly revenue growth of just 1.7% year-over-year.
Analysts are generally positive on DRIO, with a consensus analyst rating of "Buy". The average analyst target price is $3.83, which represents a potential upside of 305.3% from the current price of $0.95.
Company Overview
DarioHealth Corp. was founded in 2011 and is headquartered in New York, New York. The company's mission is to "empower people with chronic conditions to live healthier lives." DRIO's products and services are designed to help users manage their conditions, improve their health outcomes, and reduce their healthcare costs.
The company's flagship product is the Dario Blood Glucose Monitoring System. The Dario Blood Glucose Monitoring System is a mobile-connected device that allows users to track their blood glucose levels and manage their diabetes. The device is small and discreet, and it can be used with any smartphone. The Dario Blood Glucose Monitoring System also comes with a companion app that provides users with real-time data on their blood glucose levels, as well as personalized insights and recommendations.
In addition to the Dario Blood Glucose Monitoring System, DRIO also offers a range of other digital health solutions, including apps for weight management, blood pressure monitoring, and medication adherence. DRIO's products and services are available in over 50 countries.
Fundamental Analysis
DRIO's financial performance has been mixed in recent years. The company has reported revenue growth in each of the past four quarters, but its profitability has declined. In the most recent quarter, DRIO reported revenue of $19.15 million, up 1.7% year-over-year. However, the company's net loss widened to $13.6 million, from a net loss of $10.7 million in the same quarter last year.
DRIO's profitability has been impacted by a number of factors, including increased competition, rising costs, and investments in new product development. The company is also facing challenges in scaling its business.
Despite its financial challenges, DRIO has a number of strengths that could help it succeed in the long term. The company has a strong brand, a loyal customer base, and a proven track record of innovation. DRIO also has a strong balance sheet with no debt.
Technical Analysis
DRIO's stock price has been in a downtrend since early 2022. The stock has fallen from a high of $3.49 in January 2022 to a low of $0.68 in June 2023. The stock is currently trading at $0.95, which is below its 50-day and 200-day moving averages.
The technical analysis suggests that DRIO's stock is in a downtrend and that further declines could be possible. However, the stock could also be due for a bounce, as it is approaching oversold territory.
Short Term Outlook
The short-term outlook for DRIO is uncertain. The stock is in a downtrend and there are a number of factors that could continue to weigh on the stock price, including competition, rising costs, and challenges in scaling the business. However, the stock could also be due for a bounce, as it is approaching oversold territory.
Long Term Outlook
The long-term outlook for DRIO is more positive. The company has a strong brand, a loyal customer base, and a proven track record of innovation. DRIO also has a strong balance sheet with no debt. These factors could help the company overcome its current challenges and succeed in the long term.
Analyst Recommendations
Analysts are generally positive on DRIO, with a consensus analyst rating of "Buy". The average analyst target price is $3.83, which represents a potential upside of 305.3% from the current price of $0.95.
