Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Zynex, Inc. (NASDAQ: ZYXI) develops, manufactures, markets, and sells medical devices used for pain management and rehabilitation as well as non-invasive fluid, sepsis, and laser-based pulse oximetry monitoring systems for use in hospitals. The Company’s devices are intended for pain management and provide rehabilitation and through the utilization of non-invasive muscle stimulation, electromyography technology, interferential current (IFC), neuromuscular electrical stimulation (NMES) and transcutaneous electrical nerve stimulation (TENS).

Kalkine’s American Tech Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

  Stock Performance:

• ZYXI has given a return of 45.26% in the past three months, furthermore with a 14.49% return in the past six months.

• The stock is leaning towards its lower band of its 52-week range of USD 16.10 and 52-week low price of USD 6.88 Post the announcement of Q3FY23 results the stock has given a return of around 49.04%, with currently price is currently near an important support zone of USD 9-USD 10.
• The price is currently trading above its long-term (200-day) SMA and its short-term (50-day) SMA, with the current RSI of around 56.07.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Key Metrics:

The graph below demonstrates that ZYXI is more profitable than its industry rivals at the given levels of operation. Also, a higher current ratio for the company denotes better short-term working capital liquidity. It also proves that a business has access to sufficient liquid short-term assets to pay down all current short-term debt, if necessary.

1.4 Top 10 shareholders:

The top 10 shareholders together form ~62.99% of the total shareholding, signifying concentrated shareholding. Sandgaard (Thomas) and BlackRock Institutional Trust Company, N.A. are the biggest shareholders, holding the maximum stake in the company at ~47.31% and ~3.80%, respectively.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

 2.2 Insights of Q3FY23:

Section 3: Key Risks and Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

  Stock Performance:

• ZYXI has given a return of 45.26% in the past three months, furthermore with a 14.49% return in the past six months.

• The stock is leaning towards its lower band of its 52-week range of USD 16.10 and 52-week low price of USD 6.88 Post the announcement of Q3FY23 results the stock has given a return of around 49.04%, with currently price is currently near an important support zone of USD 9-USD 10.
• The price is currently trading above its long-term (200-day) SMA and its short-term (50-day) SMA, with the current RSI of around 56.07.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings per share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 22, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.