Sensus Healthcare, Inc. (SRTS) research, news, and more from GeoInvesting

Company description

Thu, 20 Sep 2018 12:05:44 GMT

Sensus Healthcare, Inc. manufactures and markets superficial radiation therapy devices to healthcare providers worldwide. It offers SRT-100, a photon X-ray low energy superficial radiotherapy system that provides patients an alternative to surgery for treating non-melanoma skin cancers; and SRT-100 Vision, which provides the user with a superficial radiation therapy-tailored treatment planning application that integrates the embedded high frequency ultrasound imaging module, volumetric tumor analysis, beam margins planning, and dosimetry parameters. The company also provides Sentinel service program, which offers its customers protection for their SRT-100 and SRT-100 Vision systems. In addition, it sells disposable lead shielding replacements; and disposable radiation safety items, such as aprons, eye shields, and disposable applicator tips, which are used to treat various sized lesions and various areas of the body. Sensus Healthcare, Inc. was founded in 2010 and is headquartered in Boca Raton, Florida.

Research

Tue, 11 Feb 2025 15:16:50 GMT

Sensus Healthcare, Inc. (NASDAQ:SRTS) ($6.07; $100.1M market cap) today announced that the company has resumed purchasing shares under its $3 million share repurchase program from August 2023.

“We are implementing this program now as we view the repurchase of our common stock as a compelling opportunity at current prices,” said Joe Sardano, Chairman and CEO of Sensus Healthcare. “We remain confident in our growth prospects and believe that returning capital to shareholders while maintaining the flexibility to invest in our strategic initiatives best positions us to enhance value for all stakeholders. We completed a similar $3 million repurchase program in 2022.”

This comes on the heels of the stock dropping hard on its Q4 2024 results last week.

SRTS manufactures and markets non-invasive treatments for skin cancer and keloids to healthcare providers worldwide.

Research

Thu, 06 Feb 2025 17:54:05 GMT

Sensus Healthcare, Inc. (NASDAQ:SRTS) ($8.99; $147.3M market cap; marked down roughly 17% pre market) announced Q4 2024 results:

Q4 Sales of $13.1 million vs $12.6 million in the prior year, and ahead of analyst estimates of $10.8 million
Q4 EPS of $0.09 vs $0.26 in the prior year and below analyst EPS estimate of $0.12
Full year sales of $41.8 million vs $24.4 million in the prior year
Full year EPS of $0.41 vs $0.03 in the prior year

“Our fourth quarter performance capped an outstanding year with key metrics reflecting the growing adoption of our SRT systems. We are proud to have achieved record-high quarterly unit shipments, along with continued profitability,” “Our Fair Deal Agreement program serves new customers who are seeking clinical value and financial flexibility. Our primary focus is on securing exclusive agreements with corporate accounts, and then supporting a targeted, high-impact rollout utilizing our data, resources and unmatched experience. We have had great success with this program since its launch a year ago, and expect it to begin contributing to revenues in the second half of 2025.”

“Throughout the year we will remain focused on driving growth and profitability by expanding patient access to non-invasive treatment solutions through vehicles such as Fair Deal Agreements, strengthening and growing customer relationships and enhancing market access.”

“The first and third quarters are our seasonally softest, and three of this year’s four largest medical conferences are in the first quarter. These events impact sales as prospective customers are out of the office, and they also impact expenses as we leverage these important opportunities. Regarding sales, we expect that first quarter 2025 sales could be considerably lower than first quarter 2024 sales, with full-year sales growth in 2025 versus 2024,” he concluded.

While we understand seasonality, comments from management stating Q1 2025 could be considerably lower than Q1 2024 is obviously putting pressure on the stock, despite management also stating full year 2025 will be higher than 2024.

SRTS was the added to our Buy On Pullback Model Portfolio #12 on August 9, 2024 (at $6.05). For some valuation scenarios based on P/E and EV/S multiples, see our November 2024 research note.

SRTS manufactures and markets superficial radiation therapy devices to healthcare providers worldwide.

Research

Sun, 08 Dec 2024 05:00:00 GMT

Sensus Healthcare, Inc. (NASDAQ:SRTS) partners with Pompano Veterinary Oncology to pioneer the use of SRT to treat companion animals across South Florida via the use of a mobile van.

“The portability of our SRT system makes it an excellent choice for this mobile companion animal clinic, and we believe that the veterinary channel will be an important one for Sensus over time. Dr. Dominguez has the foresight to provide radiotherapy services to both clinics and homes with the first mobile offering of SRT in the country.”

Research

Wed, 20 Nov 2024 20:52:53 GMT

Last week, Sensus Healthcare, Inc. (NASDAQ:SRTS) ($8.36; $137.1M market cap) announced strong Q3 2024 results which we highlighted here.

The stock was the added to our Buy On Pullback Model Portfolio #12 on August 9, 2024 (at $6.05) and is already up 38%, so, we wanted to provide some valuation scenarios on a P/E and EV/S multiples, as the company continues to transition to adopt more of a recurring revenue model:

Based on analyst 2025 EPS estimates of $0.65 we could see shares trading in a range of $9.75 to $16.25 using 15 to 25 P/E’s multiples. Remember these are only short term targets. Here’s more context on how we would approach this P/E range. Assuming the analyst estimates are within reason, we believe SRTS should be currently trading at a PE of 15x on analyst estimates, and by the end of 2025 shares should be trading with a trailing PE of 25x (stay tuned for a PodClip, explaining this P/E rationale).
On an Enterprise Value to Sales multiple of 2x to 4x using analyst 2025 revenue estimates of $47.1 million, we could see shares trading at a range of $5.50 to $11.00. Investors should note that it is not uncommon for high recurring revenue growing medical device companies to trade at a EV/S range of 4X to 8X, implying a top end price target of $22.00 if SRTS demonstrates success moving in the recurring revenue direction.

While we are on the subject of BOP #12, we’re delighted to report that the portfolio is doing well, currently up 33%, producing substantial alpha vs. the broader markets.

Research

Fri, 15 Nov 2024 17:33:30 GMT

Sensus Healthcare, Inc. (NASDAQ:SRTS) ($7.62; $124.9M market cap) announced strong Q3 2024 results during the trading day yesterday. We issued the following tweet as the earnings crossed:

Sales of $8.8 million vs $3.9 million in the prior year
EPS of $0.07 vs a loss of $0.09 in the prior year

“Continued growth in revenues and earnings reflects our success in engaging customers with both existing and new sales options. Our revenues more than doubled year-over-year for the second consecutive quarter, and we maintained profitability despite the summer seasonality of our business,” said Joe Sardano, chairman and chief executive officer of Sensus Healthcare. “Our revenue-sharing Fair Deal Agreement, which allows customers to deploy capital elsewhere in their businesses, continues to attract significant attention. Since our launch at the American Academy of Dermatology meeting in March, we signed 22 agreements as of September 30th. In addition, the signing of an agreement with Platinum Dermatology Partners, a rapidly-growing network of 130 dermatology clinics, is a major step forward. We believe this is the first of many such groups to consider the Fair Deal Agreement.”

SRTS manufactures and markets superficial radiation therapy devices to healthcare providers worldwide.

PodClips

Wed, 24 Jul 2024 04:00:00 GMT

An atttendee provided a case for SRTS during a Twitter Spaces Event held by @WOLF_Financial

Key Points :

Revenue Growth : Reported Q1 revenues up over 300%.
FDA Approval : Their device is FDA approved, not merely an aesthetic device.
Revenue Model : They have diversified their revenue streams by selling, leasing, and launching a subscription model.
Gross Margins : Currently at 63%.
EBITDA Margins : Reported 29% adjusted EBITDA margins in Q1.
Accounts Receivable and Cash : Accounts receivable were up 84% in Q1, most of which has been collected, leading to a projected cash uptick. Deferred revenue was up 44%.
Debt-Free : The company has no debt and holds $15 million in cash.
International Sale : A significant sale to the largest private hospital in Asia, located in Taiwan, was initially supposed to ship in Q1 but actually shipped in Q2, indicating additional revenue recognition in the upcoming quarter.
Management Outlook : Management has indicated that Q2 will be as good or better than Q1.
Stock Performance : The stock dipped after Q1 but is now approaching a 52-week high.
Future Projections : Expected EPS of $0.65 for next year and EBITDA around $15 million.
Valuation : Even at 10-15 times earnings, the stock is projected to be valued at around $10.
Upcoming Catalyst : The company is set to report on August 8th, which is expected to be a significant event based on the anticipated positive results.

The speaker emphasized the strong financial health and growth prospects of SRTS, making it a potentially attractive investment.

SRTS Pitch by @smantel (aka TheGodFAtherKnows on TwitterX)

Research

Tue, 20 Feb 2024 16:39:08 GMT

Sensus Healthcare, Inc. (NASDAQ:SRTS) ($4.90; $80.2M market cap) has rebounded 155% following a robust fourth-quarter earnings report where it exceeded analyst sales and EPS estimates.

Q4 sales of $12.6 million vs $13.1 million in the prior year but ahead of analyst estimates of $11.0 million.
Q4 non-GAAP EPS of $0.26 vs $0.17 in the prior year and well ahead of analyst estimates of $0.12.
Q4 Is typically the company’s strongest quarter.

A critical takeaway from the Q4 announcement is the company's strategic move towards what we previously discussed as necessary amidst business challenges—initiating a subscription-based revenue model for some of its products to make them more affordable to doctors. SRTS manufactures and markets superficial radiation therapy devices to healthcare providers worldwide.

We believe this strategy is a step in the right direction for the long term. However, it's important to be aware that comparing this recurring revenue to previous one-time (larger) product sales might present some difficulties until the comparisons level out to a more apples to apples basis and recurring revenue builds up.

Management was a little vague regarding guidance on the Q4 call.

We would consider shares to be reasonably priced based on analyst 2024, 2025 and 2026 EPS estimates of $0.11, $0.18 and $0.26, respectively. It's important to reiterate that the company significantly exceeded Q4 expectations and that we are not sure if estimates take into account the shift to a recurring revenue model.

We will closely monitor the company’s business model shift.

Research

Fri, 10 Feb 2023 19:52:44 GMT

**Call To Action

Removing SRTS From Our Model Portfolio Holdings

This morning, we tweeted that SRTS has been removed from our Model Portfolios.

Sensus Healthcare, Inc. (NASDAQ:SRTS) ($8.85; $147.0M market cap) manufactures and markets superficial radiation therapy devices to healthcare providers worldwide. The company announced its Q4 2022 results:

Sales of $13.1 million vs. $13.0 million in the prior year

EPS of $0.17 vs. EPS of $0.32 in the prior year

“During the fourth quarter we executed well on our strategy and once again delivered strong revenues and profits,” said Joe Sardano, chairman and chief executive officer of Sensus Healthcare. “We took a number of steps to position Sensus for future success. These included assembling the staff and strategies to drive sustainable and consistent growth, building inventory, acquiring new aesthetic products that will be submitted to FDA for anticipated clearance in the latter half of 2023, further investing in our Sentinel™ IT Solutions capability and increasing sales and marketing programs, headcount and capabilities. With better reimbursement for superficial radiation therapy (SRT) and lower reimbursement for Mohs surgery, along with data suggesting that one in five Americans will develop skin cancer, we have powerful tailwinds to support our programs.”

“...expects continued top line growth in the first quarter of 2023 and full-year profitability”

SRTS had provided preliminary results for Q4 in early January that helped allay fears caused by Q3 conference call comments about the negative impact of Hurricane Fiona on some of the company’s clinics in Florida.

After the additional context from the company Q3 conference call, shares had a nice recovery off post-Q3 lows of $5.60. You can see our related tweet thread here, where we discuss the selloff being possibly overblown.

While shares did indeed partially recover, the fact the company danced around giving more precise 2023 guidance in the Q4 conference call has led us to remove SRTS from our model portfolios, but given the stock’s low valuation (P/E of 9.0) we will keep the company on our radar in case management offers clearer guidance for the remainder of the year.

Research

Fri, 02 Nov 2018 15:00:07 GMT

Sensus Healthcare, Inc. (NASDAQ:SRTS) ($6.50; $106.7M market cap) manufactures and markets superficial radiation therapy devices to healthcare providers worldwide. We added SRTS to our Medical Device Screen on September 20, 2018. The company reported its Q3 2018 results:

Sales of $6.3 million vs $4.7 million in the prior year
Net loss of $0.03 vs net loss of $0.07 in the prior year

Our strong and consistent execution of our business plan continued during the third quarter, with revenues increasing 32% year-over-year, and the achievement of double-digit revenue growth quarter after quarter for three years," said Joe Sardano, Chairman and Chief Executive Officer of Sensus Healthcare. "We were particularly pleased with the traction from our oncology sales organization during the quarter, which we have been building up during the past year. In addition, a key corporate customer has proven to be reliable and lucrative for us, with a program to provide turnkey solutions to physicians.

As previously disclosed, we have been investing significantly in research and development, which we view as essential to the long-term prosperity of Sensus. Much of the investment has been directed to our new Intraoperative Radiation Therapy (IORT) system for treating breast and other cancers. We filed a 510(k) application with the FDA at the end of 2017 and continue to expect clearance before the end of the year. We have taken a number of steps to prepare for the anticipated launch of this product early next year, including manufacturing several beta models being tested in key oncology centers and starting the expansion of our oncology sales force. We expect our IORT system, which contains key technological advances, and with an expected list price in excess of $1 million, will play an important role in the growth of Sensus in the coming years.

Research

Thu, 20 Sep 2018 17:07:41 GMT

Adding SRTS to Our New Medical Device Screen

Sensus Healthcare, Inc. (NASDAQ:SRTS) ($7.18; $113.1M market cap) manufactures and markets superficial radiation therapy devices to healthcare providers worldwide. Similar to DYNT, analysts are calling for nice top line growth with improved bottom line performance. Estimates are for $26.0 million and $34.6 million in 2018 and 2019 with a bottom line loss of $0.18 and a loss of $0.03, respectively. SRTS’ current price/sales multiple is 4.8. The company just completed a public offering of 2.2 million shares at $6.80.