MGRM: Monogram’s Potential for Profitable Long-Term Growth Supports Price Target of $6.00

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MGRM: Monogram’s Potential for Profitable Long-Term Growth Supports Price Target of $6.00

Zacks Small Cap Research08-22

By Thomas Kerr, CFA NASDAQ:MGRM READ THE FULL MGRM RESEARCH REPORT Monogram (NASDAQ:MGRM) reported 2nd quarter 2024 results on August 14th which were largely in line with expectations. Research and ...

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Research and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/mgrm-monogram-potential-profitable-long-131400402.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>MGRM: Monogram’s Potential for Profitable Long-Term Growth Supports Price Target of $6.00</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMGRM: Monogram’s Potential for Profitable Long-Term Growth Supports Price Target of $6.00\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-22 21:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/mgrm-monogram-potential-profitable-long-131400402.html><strong>Zacks Small Cap Research</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>By Thomas Kerr, CFA\n NASDAQ:MGRM\nREAD THE FULL MGRM RESEARCH REPORT\nMonogram (NASDAQ:MGRM) reported 2nd quarter 2024 results on August 14th which were largely in line with expectations. Research and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/mgrm-monogram-potential-profitable-long-131400402.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MGRM","symbol_name":"Monogram Orthopaedics Inc","start_time":0,"source_url":"https://finance.yahoo.com/news/mgrm-monogram-potential-profitable-long-131400402.html","article_id":"2461326373","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2461326373","pubTimestamp":1724332440,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Monogram  reported 2nd quarter 2024 results on August 14th which were largely in line with expectations. Research and development expenses for the quarter ending June 30, 2024 were $2.4 million compared to $2.9 million in the prior year period. The R&D decrease was primarily due to the company moving into the verification and validation phase of its robot prototype. The move into the validation phase, which consisted largely of testing and documenting the system components and protocols led to decreases in prototype material and contractor services which are largely associated with the verification phase.CEO Ben Sexson stated, \"The 28,214-page submission is the culmination of over eight years and thousands of hours, comprising verification and validation from numerous, extremely rigorous tests including simulated cadaveric surgeries by fifteen surgeons. This FDA submission for the mBs TKA System represents a significant milestone for Monogram in our journey to impro","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"MGRM":"Monogram Orthopaedics Inc"},"translate_title":"MGRM：Monogram长期盈利增长的潜力支持6.00美元的目标价","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MGRM":1},"content_text":"By Thomas Kerr, CFA\n NASDAQ:MGRM\nREAD THE FULL MGRM RESEARCH REPORT\nMonogram (NASDAQ:MGRM) reported 2nd quarter 2024 results on August 14th which were largely in line with expectations. Research and development expenses for the quarter ending June 30, 2024 were $2.4 million compared to $2.9 million in the prior year period. The R&D decrease was primarily due to the company moving into the verification and validation phase of its robot prototype. The move into the validation phase, which consisted largely of testing and documenting the system components and protocols led to decreases in prototype material and contractor services which are largely associated with the verification phase. \nGeneral & administrative expenses for the 2nd quarter were $1.1 million, which is comparable to the prior year period. Marketing and advertising expenses decreased to $91,715 in the quarter compared to $1.7 million in the prior year period. The decrease was largely related to expenses incurred during the 2nd quarter of 2023 that were associated with the marketing campaign related to its offering of its common stock in 2023.\nNet loss for the quarter was ($3.5) million compared to a net loss of ($5.2) million in the prior year quarter. Operating cash flow was a use of cash of ($2.8) million. We expect the monthly burn rate to be approximately $1.1-$1.2 million for the remainder of 2024.\nCash and cash equivalents totaled $7.3 million as of June 30, 2024, compared to $13.6 million as of the end of 2023. Working capital was approximately $5.6 million and total stockholders’ equity was $7.0 million. The company plans to continue to try to raise additional capital through available financing options which may include equity and/or debt offerings, as well as straight or convertible debt financings (see below).\nFDA Submission \nOn August 8th, the company announced it had submitted its 510(k) application for its mBôs TKA System on July 19th to the FDA. According to MDUFA Performance Goals and Procedures, Fiscal Years 2023 through 2027, for 510(k) submissions received in FY 2024, the average total time to decision goal for FDA and industry is 124 calendar days. \nThe submission follows recent FDA written feedback regarding the company’s pre-submission request and a meeting to discuss the Monogram mBôs™ TKA System verification test plan, including a proposed clinical trial protocol on an outside the U.S. (OUS) target population. Management believes the feedback was comprehensive and will be advantageous for a successful 510(k) submission to obtain clearance, commercialization, and marketing for the mBôs™ TKA System.\nCEO Ben Sexson stated, \"The 28,214-page submission is the culmination of over eight years and thousands of hours, comprising verification and validation from numerous, extremely rigorous tests including simulated cadaveric surgeries by fifteen surgeons. This FDA submission for the mBôs TKA System represents a significant milestone for Monogram in our journey to improve human health with our precision robotic surgical system and should be an essential catalyst for institutional engagement.”\nThe submission is also expected to position the company well for future funding opportunities from institutional investors.\nMonogram Secures Initial Strategic Clinical Trial Collaboration\nOn August 12, the company announced a strategic collaboration with Shalby Limited (NSE:SHALBY), a global muti-specialty hospital chain and one of India's prominent orthopedic hospital groups, to conduct a multicenter clinical trial to demonstrate the safety and effectiveness of the mBȏs TKA System. Shalby is the largest orthopedic hospital chain in the world employing over 4,000 people at 14 hospitals in 13 cities with more than 3 million patients treated. Shalby represents approximately 15% of the organized arthroplasty market in India, which has an approximate market size of 200,000 TKAs per year, with a CAGR of approximately 20%. Shalby currently operates in eight countries and has aggressive multi-continent international expansion plans.\nUnder the collaboration, Shalby will enroll patients at various sites in India for surgeons to evaluate the safety and effectiveness of the mBȏs TKA System with the Consensus CKS implant, which is equivalent to the Monogram mPress implants for regulatory purposes. Monogram received comments on the Clinical Investigational Plan during its February 2024 Presubmission Communications with the FDA and has incorporated feedback into its 510(k) application submitted to the FDA on July 19, 2024 which passed the FDA Administrative Review. Notably, the strategic collaboration contemplates the post-trial transfer of a robot to the hospital system under certain conditions following the trial as the companies contemplate further collaboration.\nCEO Ben Sexson stated, \"With over 200,000 TKAs annually, we believe India represents a massive market potential driven by a large population and demographic tailwinds. India is underpenetrated for robotics but is rapidly growing, and we believe the market potential is likely in the hundreds of systems. Shalby is a world class organization and we have been nothing but impressed by the caliber of their surgeons and standard of care. We resonate with Shalby's ambitious growth plans globally including in the United States and look forward to validating the value proposition of the mBȏs TKA System with real world data. Our recent 510(k) submission and passing of the FDA Administrative Review is a catalyst for strategic synergies.\"\nMonogram plans to leverage the clinical data from the US study for post-launch marketing and to support international clearance and commercialization. Both companies see a significant clinical need for a highly intuitive, safe, and accurate multi-application robotic platform. \n8.00% Convertible Preferred Stock and Warrants\nOn July 9th, the company announced the launch of a continuous public offering of up to $10,000,000 of units at a public offering price of $2.25. Each unit comprises one share 8.00% Series D Redeemable Convertible Cumulative Preferred Stock and one warrant to purchase one share of common stock exercisable at $3.375 per share. This should result in net proceeds to the company of approximately $9.25 million after payment of commissions and offering expenses if all the Units are sold.\nThe shares of the Series D Preferred Stock and the warrants are immediately separable and will be issued and tradeable separately but will be purchased together. The Series D Preferred Stock pays a $0.18 per share per year dividend at an annual yield of approximately 8.00% and is convertible into one share of the company's common stock. The dividend is payable in cash or in-kind. The company has the right to redeem the Series D Preferred Stock at a premium to the public offering price of the units, which declines over time from 200% down to 150% of the offering price. \nFinal results from the offering were not available as of the date of this report.\nUpcoming Milestones\n ➢ Obtain clearance for the mBôs™ TKA System following FDA decision \n ➢ Progress towards OUS live-patient surgery trials in India\n ➢ US and international commercial launch\n ➢ mVision next gen-demo\n ➢ Initiate the development of the next clinical applications\nValuation and Estimates\nMonogram has the potential to deliver strong revenue growth and positive earnings over the next 10 years after commercialization of its robotic system and customized press-fit implants. We believe the company can generate average annual revenue growth in the range of 25%-40% over the next 10 years and improve margins to industry averages over time.\nOur primary valuation tool utilizes a Discounted Cash Flow process. Under the scenario described above, our DCF based valuation target is approximately $6.00 per share. Our target price may be conservative as it utilizes a high discount rate of 15.0% due to the unpredictability of earnings, higher prevailing interest rates, and the timeline of commercialization of the company’s products in the U.S. \nOur 2024 full year EPS estimate is a loss of ($0.45) and for 2025, the EPS estimate is ($0.48). We are conservative in our approach to revenue projections and expect no revenues in 2024 and $5.7 million for 2025. \nA peer group of companies (SYK, ZBH, SNN) are currently trading at approximately 4.25x sales on average, with the closest robotic competitor being SYK at 6.15x. This would create a relative value in the range of $4.75-$5.00 using Monogram’s estimated 2027 revenues and discounted back. Using Monogram’s closest competitor’s price/sales ratio, a long-term relative target value would be closer to $6.00. \nSUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. \n \nDISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives quarterly payments totaling a maximum fee of up to $40,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"hasMoreComments":false,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}