SANUWAVE Health Inc. Common Stock (SNWV)

FairStock Score: 53/100 — MIXED

Key Financials

Strengths

• Healthy net profit margin of 17.3% showing consistent profitability
• Revenue growth of 26.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($2) with negative 875% margin of safety—limited downside protection
• High leverage at 12.06x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of -5.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

SANUWAVE Health Inc. Common Stock is a micro-cap healthcare company valued at $170 million. The business generates $44 million in annual revenue with a 17.3% net margin. From a quality standpoint, SANUWAVE shows distressed Altman Z-Score of -5.6 warrants caution and highly leveraged at 12.06x D/E. On valuation, the stock is reasonably priced at 17.6x earnings, with trades far above its Graham Number ($2) with no margin of safety. Growth dynamics show revenue growing at 26.8% and profit growth of 147.9%. Our composite FairStock Score of 53/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

SANUWAVE's 27% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 12.1x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer