DCF Tool

ZYXI

Zynex Inc – Surgical and Medical Instrument Manufacturing
zynex, inc. founded in 1996, engineers, manufactures and markets neuro-diagnostics, stroke rehabilitation, pain management and cardiac monitoring devices within three subsidiaries. zynex medical is a provider of electrotherapy products for home use. zynex monitoring solutions develops products for cardiac monitoring for use in hospitals. zynex neurodiagnostics develops devices for emg and eeg diagnostic applications within neurology disciplines. zynex medical's product line is fully developed, fda/ce cleared, commercially sold, and has been developed to uphold the company's mission of improving the quality of life for patients suffering from impaired mobility due to stroke, spinal cord injury, or debilitating and chronic pain. zynex monitoring solutions and zynex neurodiagnostics are currently both in the development stages without any significant revenues.
Analysis Results
Intrinsic Value $32.78
Latest Price $13.40
Relative Value 59% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 29.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 29.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 42.5 38.6
2024 55.2 45.5
2025 71.7 53.5
2026 93.1 63.1
2027 121 74.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1500 million. This corresponds to a present value of 836 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 275 million. Adding in the terminal value gives a total present value of 1110 million.

There are presently 33.9 million outstanding shares, so the intrinsic value per share is 32.78.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 69,559,000
Current Cash 20,144,000
Current Liabilities 21,086,000
Current Debt 5,461,000
Non-Cash Working Capital (NCWC) 33,790,000
Change in NCWC 11,133,000
EBIT 22,938,000
Tax Provision 5,150,000
Depreciation and Amortization 3,127,000
Capital Expenditure -418,000
Unlevered Free Cash Flow 31,458,317
Current Assets 82,689,000
Current Cash 42,612,000
Current Liabilities 22,871,000
Current Debt 5,451,000
Non-Cash Working Capital (NCWC) 22,657,000
Change in NCWC 8,847,000
EBIT 22,366,000
Tax Provision 5,168,000
Depreciation and Amortization 2,286,000
Capital Expenditure -609,000
Unlevered Free Cash Flow 27,699,955
Current Assets 63,023,000
Current Cash 39,173,000
Current Liabilities 10,117,000
Current Debt 77,000
Non-Cash Working Capital (NCWC) 13,810,000
Change in NCWC 10,436,000
EBIT 10,249,000
Tax Provision 1,079,000
Depreciation and Amortization 1,572,000
Capital Expenditure -985,000
Unlevered Free Cash Flow 20,182,797
Current Assets 22,566,000
Current Cash 14,040,000
Current Liabilities 5,197,000
Current Debt 45,000
Non-Cash Working Capital (NCWC) 3,374,000
Change in NCWC 5,531,000
EBIT 11,066,000
Tax Provision 2,449,000
Depreciation and Amortization 778,000
Capital Expenditure -160,000
Unlevered Free Cash Flow 14,945,455
Current Assets 14,326,000
Current Cash 10,128,000
Current Liabilities 6,355,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,157,000
Change in NCWC -1,302,000
EBIT 10,370,000
Tax Provision 664,000
Depreciation and Amortization 448,000
Capital Expenditure -1,082,000
Unlevered Free Cash Flow 7,759,990
Current Assets 8,371,000
Current Cash 5,565,000
Current Liabilities 4,015,000
Current Debt 354,000
Non-Cash Working Capital (NCWC) -855,000
Change in NCWC 826,000
EBIT 8,944,000
Tax Provision 129,000
Depreciation and Amortization 286,000
Capital Expenditure -87,000
Unlevered Free Cash Flow 9,815,040
Current Assets 3,422,000
Current Cash 247,000
Current Liabilities 7,745,000
Current Debt 2,889,000
Non-Cash Working Capital (NCWC) -1,681,000
Change in NCWC -1,011,000
EBIT 640,000
Tax Provision 15,000
Depreciation and Amortization 435,000
Capital Expenditure -226,000
Unlevered Free Cash Flow -276,285
Current Assets 2,766,000
Current Cash 8,000
Current Liabilities 7,539,000
Current Debt 4,111,000
Non-Cash Working Capital (NCWC) -670,000
Change in NCWC -2,775,000
EBIT -2,481,000
Tax Provision -57,000
Depreciation and Amortization 424,000
Capital Expenditure 0
Unlevered Free Cash Flow -4,832,000
Current Assets 5,705,000
Current Cash 63,000
Current Liabilities 8,057,000
Current Debt 4,520,000
Non-Cash Working Capital (NCWC) 2,105,000
Change in NCWC -7,504,000
EBIT -5,237,000
Tax Provision -49,000
Depreciation and Amortization 660,000
Capital Expenditure -272,000
Unlevered Free Cash Flow -12,353,000
Current Assets 13,704,000
Current Cash 323,000
Current Liabilities 9,684,000
Current Debt 5,912,000
Non-Cash Working Capital (NCWC) 9,609,000
Change in NCWC -4,887,000
EBIT -7,600,000
Tax Provision -790,000
Depreciation and Amortization 839,000
Capital Expenditure -644,000
Unlevered Free Cash Flow -12,292,000

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