G Medical Innovations Holdings Ltd (GMVD) is an Israel-based commercial-stage healthcare company that is developing next-generation mobile health and telemedicine solutions in the United States, China, and Israel.
Shares of GMVD have slumped 18.4% in price over the past three months to close yesterday’s trading session at $2.30. The stock is currently trading above its 50-day moving average of $2.26, but below its 200-day moving average of $2.83.
The global healthcare industry is thriving with increased demand for healthcare products and services and continuing investments in the sector. An aging population is also driving the industry’s growth. So, with rising demand and continued medical advances and innovations, the industry is expected to keep growing. However, GMVD’s bottom-line has yet to reflect the industry tailwinds.
The Company’s Expectations
The company expects to target investments in increasing sales and marketing capabilities and expand its medical monitoring technical teams while enhancing its commercial portfolio.
”In support of our growth strategy, we are expanding both Prizma evaluations and cardiac service monitoring opportunities with healthcare providers and expect to see recognition of these activities in 2022,” according to Dr. Yacov Geva, President, and CEO of G Medical Innovations.
But, while the company is preparing for long-term growth, focusing on synergistic acquisitions, its bottom-line growth could be limited in the near term. The company used less cash in operations in the first half of 2021 than the prior-year period.
GMVD’s total revenues increased 45.5% year-over-year to $2.93 million for the six months ended June 30. Its operating loss stood at $4.27 million, down 7.8% from the same period last year. Its loss for the period came in at $4.77 million, indicating a decline of 4.2% year-over-year. In addition, its loss per share declined 39.3% year-over-year to $0.51.
POWR Ratings Reflect Bleak Prospects
GMVD has an overall D rating, which translates to Sell in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
The stock has a D grade for Momentum. This is justified because the stock has lost 12.3% in price over the past three months.
GMVD has a C grade for Growth. Its mixed financials for the first half of 2021 justify this grade.
Of the 172 stocks in the Medical – Devices & Equipment industry, GMVD is ranked #144.
Beyond what I have stated above, one can also view GMVD’s grades for Quality, Value, Sentiment, and Stability here.
View the top-rated stocks in the Medical – Devices & Equipment industry here.
Although the healthcare industry has garnered huge investor attention since the onset of the pandemic, GMVD has not yet benefited sufficiently from the industry tailwinds, which is reflected in its bottom line. Furthermore, the stock’s price performance has also been weak, representing investors’ pessimism. So, we think the stock is best avoided now.
How Does G Medical Innovations Holdings Ltd (GMVD) Stack Up Against its Peers?
While GMVD has an overall POWR Rating of D, one might want to consider investing in stocks holding an A (Strong Buy) rating, such as Fonar Corporation (FONR), Natus Medical Incorporated (NTUS), and Utah Medical Products, Inc. (UTMD).
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GMVD shares were unchanged in premarket trading Friday. Year-to-date, GMVD has declined -7.60%, versus a 26.56% rise in the benchmark S&P 500 index during the same period.
About the Author: Subhasree Kar
Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...
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