SS Innovations International, Inc. develops surgical robotic systems. It also develops SSI Mantra, a surgical robotic system; SSI Mudra, a range of surgical instruments that supports in surgical procedures, including robotic cardiac surgery; SSI Maya, a robotic surgery platform; and OMNI 3D HD provides live 3D HD view of the surgical field in robotic surgery operating room. The company is based in Fort Lauderdale, Florida.

SS Innovations International, Inc.

Healthcare

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

SSII reported revenue of USD 20mn in the last 12 months, up 245% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 33% from FY23 to USD -0.11.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 43ppts over six months and grown 3ppts faster in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is slightly negative.

The company has reported very poor EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -83.4% in the last 12 months, up from -363.0% in FY23. 

Historically, SSII has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -95.2%, a growth from -390.3% in FY23. 

In the last 12 months, the return on capital employed (RoCE) grew to -103.6%, below the peers. 

SS Innovations International, Inc. reported a return on equity (RoE) of -139.1% in the last 12 months, up from -160.5% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to -56.9% in the last 12 months, an increase from -90.1% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -19.6 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

SSII has very poor trading liquidity. It will take at least a day or two for the average private investor to sell a common position under normal market conditions. Liquidity is very unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to bleak profitability, negligible return on capital, poor working capital management, inadequate interest coverage, and poor cash flow generation. We note resilient historical revenue growth and low margin volatility, among the positive credit factors. 

In highly turbulent market conditions, SSII is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, SSII is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is considerably overpriced compared to similar stocks. 

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SS Innovations International, Inc.

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SS Innovations International, Inc.

$ 4.99

2

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SS Innovations International, Inc.

$ 4.99

2

SS Innovations International, Inc.

$ 4.99

2

Risk factor

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Risk / Profitability

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