Kestra Medical Technologies Ltd. Common Stock (KMTS)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable advantages, honest accounting, and a margin of safety. Kestra is understandable: it sells wearable cardiac monitoring and a cardiac recovery platform. But the numbers show a business still in investment mode. Revenue is growing fast: fiscal 2024 revenue was $27.8M, fiscal 2025 was $59.8M, and fiscal 2026 was $95.1M. In the latest filed quarter, fiscal Q1 2027 ended 2026-07-31, revenue was $31.0M, up from $19.4M in fiscal Q1 2026. Unfortunately, losses are growing too: fiscal 2026 net loss was $131.6M, fiscal 2025 was $113.8M, and fiscal 2024 was $94.1M. The latest quarter's net loss was $44.1M on $31.0M of revenue, a negative 142.35% margin. Free cash flow is negative $123.2M over the trailing twelve months, a -7.7% FCF yield, so the company consumes cash. The balance sheet has D/E of 0.34, and the FairStock Altman Z-Score is 5.25, which suggests not immediate distress by that measure. Still, ROE is -73.73%, ROCE is -29.23%, and P/B is 7.19 at the 2026-10-13 close. The P/E is negative at -10.06, so earnings give no valuation support. The FairStock Lynch category is none because the company lost money in each of the last three years. At a $1.6B market cap against $95.1M of fiscal 2026 revenue, the price already assumes a lot of future success. I see a promising product story, but no visible moat or margin of safety in the current figures.

In plain English: Kestra Medical makes wearable heart-monitoring devices and a cardiac recovery system for patients at risk of sudden cardiac arrest. Sales are growing quickly, but the company still loses much more money than it brings in and has not yet shown a profit. At $26.97, the shares look expensive compared with the company's sales and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-07-31) · fiscal Q3 2026 10-Q (period ended 2026-01-31) · fiscal Q2 2026 10-Q (period ended 2025-10-31) · fiscal Q1 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-04-30) · FY2025 10-K (period ended 2025-04-30) · FY2024 10-K (period ended 2024-04-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer