SOMNOMED LIMITED (SOM)
Share Price Analysis and Chart

29/08/2025

1

Speculative Buy

$0.99

32.00%

An inline FY25 result for SomnoMed which Morgans described as "clean," meeting forecasts and being above guidance. Net profit after tax of $2.5m was achieved from 22% revenue growth and a lift in margins to 8.2% from 0.6% in FY24, meeting forecasts.

There were several one-offs in the period, not a surprise with ongoing investment, which is viewed as manageable with cash levels of $17.3m.

The manufacturing reset resulted in a rise in capacity of over 50% from lows in FY24, with turnaround times improved and a negligible backlog. Revenue growth of 22% is flagged for FY26.

Morgans continues to see SomnoMed as undervalued despite risks around new product and regulatory approvals, as well as being an M&A target as it achieves scale and cost synergies improve.

No change to Speculative Buy. Target slips to 99c from $1.

FORECAST
Morgans forecasts a full year FY26 dividend of 0.00 cents and EPS of 1.60 cents.
Morgans forecasts a full year FY27 dividend of 0.00 cents and EPS of 2.90 cents.

02/09/2025

1

Overweight

$1.00

33.33%

Wilsons describes SomnoMed's FY25 result as a structural turnaround with proof of sustainable profitability, robust operating cash flow, and clear momentum in its core US and European businesses.

FY25 sales in the US rose 31% y/y, falling marginally short of the broker's forecast. Europe sales rose 17%, beating the broker's forecast while APAC fell short, despite 10% rise.

FY26 revenue and EBITDA guidance were higher than the broker's estimate, with the company on track for 10% EBITDA margin in FY27.

Overweight. Target rises to $1.00 from $0.80.

FORECAST
Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 1.10 cents.
Wilsons forecasts a full year FY27 dividend of 0.00 cents and EPS of 1.50 cents.