Last Updated: 17 Sep 2024
Executive Summary
Vivos Therapeutics Inc. (VVOS) is a medical technology company focused on developing and commercializing treatments for sleep-disordered breathing, particularly mild to moderate obstructive sleep apnea (OSA). Despite a challenging market environment, the company has demonstrated steady revenue growth and is expected to continue expanding in the coming years. However, its profitability remains elusive, and investors should carefully consider the risks associated with investing in a pre-revenue company.
Company Overview
Vivos Therapeutics was founded in 2009 and is headquartered in Highlands Ranch, Colorado. The company's primary product is the Vivos System, a non-surgical treatment for OSA that uses a combination of oral appliances and lifestyle modifications. Vivos believes that its treatment can effectively address the underlying causes of OSA, such as narrow airways and poor muscle tone.
Fundamental Analysis
Revenue: Vivos Therapeutics reported revenue of $14.02 million in the trailing twelve months (TTM), representing a 19.4% increase year-over-year. This growth was primarily driven by increased demand for the Vivos System.
Earnings: The company continues to operate at a loss, with a net loss of $12.91 million in the TTM. This is due to high operating expenses, particularly research and development (R&D) and sales and marketing.
Profitability: Vivos Therapeutics has yet to achieve profitability, with a negative profit margin of -0.859%. The company expects to become profitable in the future as revenue scales and operating expenses are optimized.
Balance Sheet: The company has a strong balance sheet with $41.1 million in cash and equivalents as of June 30, 2024. This provides a solid financial foundation for future growth.
Technical Analysis
Price Action: Vivos Therapeutics' stock price has been trading in a range between $1.91 and $48.79 over the past 52 weeks. The current price of $2.95 is near the lower end of this range.
Moving Averages: The stock's 50-day moving average is $2.533, while the 200-day moving average is $4.903. The stock is currently trading below both moving averages, indicating a bearish trend.
Support and Resistance: Key support levels for the stock include $2.00 and $1.50. Key resistance levels include $3.50 and $4.00.
Short Term Outlook
In the short term, Vivos Therapeutics' stock price is likely to remain volatile. The company faces challenges in gaining market share in a competitive industry. However, the company's strong balance sheet and potential for future profitability could provide support to the stock price.
Long Term Outlook
The long-term outlook for Vivos Therapeutics is more positive. The company has a unique and potentially disruptive technology that could revolutionize the treatment of OSA. If the company can successfully execute its growth strategy and achieve profitability, the stock price could have significant upside potential.
Analyst Recommendations
Analysts are generally bullish on Vivos Therapeutics. Two analysts have a "Buy" rating on the stock, while none have a "Sell" rating. The average analyst target price is $7.42, which represents a potential upside of over 150% from the current price.
