Kestra Medical Technologies, Ltd.
$18.82
-6.8%Kestra Medical Technologies, Ltd. operates as a wearable medical device and digital healthcare company. It focuses on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected. The company develops and commercializes Cardiac Recovery System platform, a system that integrates monitoring, therapeutic treatment, digital health, and patient support services into a single, unified solution. Its Cardiac Recovery System platform is the ASSURE WCD, a wearable cardioverter defibrillator (WCD) used to protect patients at an elevated risk of sudden cardiac arrest (SCA). The company's Cardiac Recovery System platform also includes a suite of integrated digital solutions and services that enable enhanced patient and provider engagement and oversight with the objective of improving patient outcomes. The company was founded in 2014 and is based in Kirkland, Washington.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -3.7).
Valuation inputs: P/E -3.7, earnings yield N/A, momentum -6.8%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -55.4%, ROIC -41.2%).
Profitability stack: net margin -1.9%, ROE -55.4%, ROIC -41.2%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +30.5%, momentum -6.8%, net margin -1.9%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Kestra Medical Technologies, Ltd. Market vs Earnings Trajectory
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Kestra Medical Technologies, Ltd. Fair Value Envelope
Kestra Medical Technologies, Ltd. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Kestra Medical Technologies, Ltd. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Kestra Medical Technologies, Ltd. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Kestra Medical Technologies, Ltd. Street Expectations Map
Wall Street analysts project that KMTS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 28.00, with estimates ranging from a low of 24.00 to a high of 30.00.
The consensus 1-year price target stands at 28.00, with estimates ranging from a low of 24.00 to a high of 30.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Kestra Medical Technologies, Ltd. Insider Positioning
During the last 12 months, insiders have purchased $200K and sold $2.09M worth of KMTS shares, resulting in $1.89M of net selling activity.
3 Months
10.0K
199.80K
38.2K
772.20K
-572K
-$572K
3-6 Months
0
0.00
52.1K
1.32M
-1.3M
-$1.32M
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Cohen Raymond W
Director
$200K
Top Sellers
Webster Brian Daniel
Director, Officer: See Remarks
$1.81M
Umberger Traci S
Director, Officer: See Remarks
$280K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $1.89M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
2 insider sellers vs. 1 buyers. More insiders selling than buying suggests cautious or negative sentiment.
Insider Activity Insight
Persistent selling pressure: Consistent insider selling with weak buy/sell ratio suggests insiders may be capitalizing on current valuation. Exercise caution and review recent earnings quality and management commentary.
kmts Dividend History
Learning Layer
Related Guides
Build conviction on KMTS by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.