MeVis Medical Solutions' (ETR:M3V) Stock Surge: A Closer Look at the Fundamentals

Over the past three months, MeVis Medical Solutions' (ETR:M3V) stock has surged by 4.1%. While short-term market movements can be influenced by various factors, long-term fundamentals often play a significant role in stock price performance. In this article, we will delve into the key financial indicators of MeVis Medical Solutions to determine if they have contributed to the recent price movement.



MeVis Medical Solutions is a leading provider of medical imaging software, focusing on early detection and diagnosis of epidemiologically important diseases. The company's clinical focuses include breast, lung, liver, and neurological diseases, with a strong emphasis on image-based early detection and diagnosis.

Revenue Streams and Growth

MeVis Medical Solutions' revenue streams can be categorized into three main segments: license revenue, maintenance revenue, and other revenue. Over the past few years, the company has experienced fluctuations in these revenue streams.

* License Revenue: This segment has shown a decline in recent years. In 2022/2023, license revenue was 26% of total sales, compared to 28% in the previous year. In 2023/2024, it further decreased to 25% of sales. This decline is mainly due to lower demand from customers such as Philips and Canon.
* Maintenance Revenue: This segment has also seen a decline. In 2022/2023, maintenance revenue was 36% of total sales, compared to 32% in the previous year. In 2023/2024, it decreased to 35% of sales, primarily due to lower maintenance revenues from customer Hologic.
* Other Revenue: This segment has shown a slight increase. In 2022/2023, other revenue was 38% of total sales, and in 2023/2024, it increased to 40% of sales. This is due to a slight increase in diagnostic services and the reallocation of staff costs, rent, and additional costs.

EBIT Margin and Profit After Tax

MeVis Medical Solutions' EBIT margin for the fiscal year 2023/2024 is 21%, which is a decrease from the previous year's margin of 23%. The company's profit after tax has also fluctuated over the past two fiscal years. In the 2022/2023 financial year, the company reported earnings after taxes of €4.9 million, which was a significant decrease from the €7.8 million reported in the 2021/2022 financial year. This decline was primarily due to a decrease in EBIT, which fell from €7.9 million in 2021/2022 to €3.9 million in 2022/2023. The EBIT margin also decreased from 42% to 23% during this period.

In the 2023/2024 financial year, MeVis Medical Solutions' profit after tax was €4.6 million, which was a slight decrease from the €4.9 million reported in the previous year. This decrease was primarily due to a decline in EBIT, which fell from €3.9 million in 2022/2023 to €3.5 million in 2023/2024. The EBIT margin also decreased from 23% to 21% during this period.

Conclusion

MeVis Medical Solutions' stock has surged by 4.1% over the past three months, and the company's key financial indicators suggest that the recent price movement may be influenced by long-term fundamentals. While the company has experienced fluctuations in its revenue streams and EBIT margin, it has maintained a relatively stable profit after tax. As the company continues to focus on its core competencies in medical imaging software, investors should monitor its financial performance and consider the potential for long-term growth.