Nuwellis Inc. Common Stock (NUWE)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

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

I look for businesses that earn consistent profits and can be bought at a discount to intrinsic value. Nuwellis does not fit that description. It sells ultrafiltration devices for fluid overload in heart failure, a small niche with 38 employees. In fiscal 2025 (year ended 2025-12-31), filed revenue was $8.3 million and net income was -$17.5 million. Revenue slipped from $8.9 million in fiscal 2023 (year ended 2023-12-31) to $8.7 million in fiscal 2024 (year ended 2024-12-31) and $8.3 million in fiscal 2025. The latest filed quarter, fiscal Q2 2026 (quarter ended 2026-06-30), showed revenue of $2.0 million and net loss of $4.8 million, a -245.2% margin. One positive quarter, fiscal Q3 2025 (quarter ended 2025-09-30), with $468,000 net income and diluted EPS of $0.56, does not break a four-year loss record. The Lynch category is none precisely because it lost money in each of the last four years. FairStock calculations at the 2026-10-13 close of $0.62 show a $2.3 million market cap, P/B of 0.03, ROE of -609.44%, ROCE of -87.83%, and trailing free cash flow of -$12.7 million. That is a -560.7% FCF yield, meaning the cash burn is enormous relative to the equity value. Altman Z of -50.26 signals severe financial distress. A Piotroski score of 5/9 is only mediocre. Low D/E of 0.10 is not enough comfort when the company is consuming cash. Graham's margin of safety is absent: no earnings, no steady cash generation, and a tiny equity base. I would need a credible path to positive free cash flow before considering this a business rather than a speculation.

In plain English: Nuwellis makes medical devices that help remove extra fluid from patients with heart failure. The business looks weak: it is losing money, and sales have drifted down from about $8.9 million in fiscal 2023 to $8.3 million in fiscal 2025. At the 2026-10-13 close of $0.62, the price looks very low, but because the company is not profitable and burns cash, it is hard to call it cheap in a safe, business-like way.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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