Is the Bottom in for (NVRO) Investors?

Small-cap health care company Nevro tumked -14.2% this afternoon, reaching $23.62 per share. In contrast, the average analyst target price for the stock is $39.67.

Nevro Corp., a medical device company, provides products for patients suffering from chronic pain in the United States and internationally. The company is based in the United States.

What to Consider if You Are Thinking of Buying Nevro:

  • Nevro has moved -43.7% over the last year.

  • NVRO has a forward P/E ratio of -13.9 based on its EPS guidance of -1.7.

  • Over the last 4 years, earnings per share (EPS) have been growing at a compounded average rate of 0.6%.

  • The company has a price to earnings growth (PEG) ratio of -0.45.

  • Its Price to Book (P/B) ratio is 2.8

Nevro Has Irregular and Negative Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cashflow ($ k) YoY Growth (%)
2022-12-31 24,675 -7,542 17,133 131.6
2021-12-31 -41,881 -12,340 -54,221 -1021.66
2020-12-31 1,191 -6,025 -4,834 91.0
2019-12-31 -50,225 -3,472 -53,697 n/a

Nevro has negative and highly variable free cash flows. They've averaged $-23.9 Million over the last 4 years, during which time they grew at a 7.2% compounded rate while displaying a coefficient of variability of 149.9%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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