ZYXI - Zynex: Operating Inefficiencies And Gross-To-Net Challenges Place Ceiling On Scalability
- Zynex exits Q3 with another sequential growth period in revenues and market share, with significant YoY comparisons.
- Valuations balance out to be attractive, and we feel shares are worth ~$27, based on gross profit multiples as a cleaner measure.
- Significant headwinds to operating efficiency make us question if underlying growth is truly organic, or from the lack of competition currently in situ.
- Additional challenges in gross-to-net discounting also place a ceiling to scalability, by our estimates.
- Here we cover all of the moving parts in the investment debate and illustrate our neutral viewpoint on Zynex shares.
For further details see:
Zynex: Operating Inefficiencies And Gross-To-Net Challenges Place Ceiling On Scalability