Nevro Corp. (NVRO) | Investment Case

1. Company Snapshot

1.a. Company Description

Nevro Corp., a medical device company, provides products for patients suffering from chronic pain in the United States and internationally.The company develops and commercializes the Senza spinal cord stimulation system, an evidence-based neuromodulation platform for the treatment of chronic pain, as well as Senza II and Senza Omnia systems.It also provides 10 kHz Therapy, which delivers neuromodulation solutions for treating chronic pain based on available clinical evidence.

The company sells its products through its direct sales force, and a network of sales agents and independent distributors.Nevro Corp.was incorporated in 2006 and is headquartered in Redwood City, California.

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1.b. Last Insights on NVRO

Nevro Corp.'s recent performance was driven by a series of positive developments. The company's Q4 earnings and revenue beat expectations, with a quarterly loss of $0.64 per share versus the Zacks Consensus Estimate of a loss of $0.79. This compares to a loss of $0.15 per share a year ago. Additionally, Nevro's worldwide revenues declined year-over-year, but the company continues to incur losses at the operating level. The upgrade to a Zacks Rank #2 (Buy) suggests growing optimism about its earnings prospects. Furthermore, Nevro's business expansion into the SI joint fusion market and optimistic 2024 results amid a weak SCS market have contributed to its growth.

1.c. Company Highlights

Last Price	5.84
Change Percentage	0.00%
Open	5.84
Previous Close	5.84
Market Cap ( Millions)	224
Volume	751504
Year High	13.3
Year Low	3.17
M A 50	5.63
M A 200	5.64

FCF Yield	2.78%
Dividend Yield	0.00%
ROE	-33.91%
Debt / Equity	108.72%
Net Debt / EBIDTA	-275.75%
Price To Book	0.95
Price Earnings Ratio	-2.5
Price To FCF	36.0
Price To sales	0.73
EV / EBITDA	-6.7

2. Transcript Summary

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3. NewsRoom

EnviroGold Retires Over $10.2 Million in Debt in 2025, Strengthens Balance Sheet as Commercialization Accelerates

Nov -11

Source: globenewswire.com

EnviroGold Increases Size of Previously Announced Non-Brokered Private Placement Due to Strong Investor Demand

Oct -15

Source: globenewswire.com

EnviroGold Increases Size of Previously Announced Non-Brokered Private Placement Due to Strong Investor Demand

Oct -15

Source: globenewswire.com

EnviroGold Closes First Tranche of Non-Brokered Private Placement and Confirms Strong Momentum Toward Final Tranche

Oct -07

Source: globenewswire.com

EnviroGold Closes First Tranche of Non-Brokered Private Placement and Confirms Strong Momentum Toward Final Tranche

Oct -07

Source: globenewswire.com

Nevro Corp. Data Breach - Levi & Korsinsky, LLP Launches Investigation

Apr -22

Source: accessnewswire.com

INVESTIGATION ALERT: Levi & Korsinsky, LLP Announces Investigation of Nevro Corp. Data Breach

Apr -21

Source: accessnewswire.com

Nevro Corp. Data Breach under Investigation by Levi & Korsinsky, LLP

Apr -21

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Medical Devices

Expected Growth: 6.0%

Nevro Corp's 6.0% growth in Medical Devices is driven by increasing adoption of its proprietary HF10 therapy for chronic pain, expanding presence in international markets, and growing demand for minimally invasive spinal cord stimulation treatments. Additionally, investments in R&D and strategic partnerships are expected to fuel innovation and further penetration in the market.

7. Detailed Products

Senza System

A spinal cord stimulation system designed to deliver Nevro's proprietary HF10 therapy, a unique high-frequency stimulation that is designed to provide pain relief without paresthesia.

Omni System

A spinal cord stimulation system that provides advanced programming capabilities and real-time data analytics to optimize patient outcomes.

HFX iQ

A cloud-based data analytics platform that provides real-time insights and data-driven insights to optimize patient outcomes and improve clinical decision-making.

Nevro's HF10 Therapy

A proprietary high-frequency stimulation therapy that is designed to provide pain relief without paresthesia.

8. Nevro Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Nevro Corp. faces moderate threat from substitutes, as alternative treatments for chronic pain, such as acupuncture and physical therapy, are available, but they are not as effective as Nevro's spinal cord stimulation therapy.

Bargaining Power Of Customers

Nevro Corp.'s customers, primarily hospitals and clinics, have limited bargaining power due to the company's strong brand reputation and the high demand for its products.

Bargaining Power Of Suppliers

Nevro Corp. has a diversified supplier base, which reduces the bargaining power of individual suppliers, and the company's strong financial position allows it to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the medical device industry, including significant research and development costs, regulatory hurdles, and the need for specialized expertise.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players, and Nevro Corp. faces intense rivalry from companies such as Medtronic, Boston Scientific, and Abbott Laboratories.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	42.56%
Debt Cost	3.95%
Equity Weight	57.44%
Equity Cost	8.69%
WACC	6.67%
Leverage	74.09%

11. Quality Control: Nevro Corp. passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

BioSig Technologies

A-Score: 4.9/10

Value: 8.0

Growth: 6.9

Quality: 4.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

Nevro

A-Score: 4.7/10

Value: 9.2

Growth: 4.7

Quality: 4.3

Yield: 0.0

Momentum: 7.5

Volatility: 2.3

1-Year Total Return ->

Butterfly Network

A-Score: 3.8/10

Value: 7.0

Growth: 4.6

Quality: 4.0

Yield: 0.0

Momentum: 6.0

Volatility: 1.0

1-Year Total Return ->

NeuroOne Medical Technologies

A-Score: 3.7/10

Value: 6.8

Growth: 6.1

Quality: 4.2

Yield: 0.0

Momentum: 4.0

Volatility: 1.3

1-Year Total Return ->

Accelerate Diagnostics

A-Score: 3.5/10

Value: 10.0

Growth: 5.6

Quality: 5.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

Cytek Biosciences

A-Score: 3.4/10

Value: 6.3

Growth: 7.0

Quality: 3.8

Yield: 0.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

19.35%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.67%

Nevro Corp. - US64157F1030

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on NVRO

1.c. Company Highlights

Cheaper

Stable Momentum

Average Growth

Earnings Beats

Revenues Miss

Weak Momentum

Medium Volatility

Revenues Beats

Average Quality

Average Yield

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Medical Devices

Expected Growth: 6.0%

7. Detailed Products

Senza System

Omni System

HFX iQ

Nevro's HF10 Therapy

8. Nevro Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Nevro Corp. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.84$

Current Price

5.84$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA