NNOX - Innovative Stock 10x Play
Can Nanox Shake up the Dated X-Ray Industry?
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Disclaimer: The content of this post is solely my personal opinion and is intended for informational purposes only. It should not be considered financial or investment advice. Always do your own research and consult with a licensed financial advisor before making any investment decisions. Investments carry risks, including the potential loss of principal.
Nanox is a company revolutionizing medical imaging like CT or MRI machines. Traditional X ray machines are known to be large, expensive and most importantly not accessible to 66% - 2/3s of the worlds population according to W.H.O (World Health Organization.)
This is primarily due to costs associated with the systems for rural areas. Layer on the fact that as of 2024 data suggest a lack of radiologist shortage is on the brink of a crisis heading into the 2025!
So how does NNOX 0.00%↑ come into play here to address these issues?
Well instead of relying on bulky, high costs components, Nanox uses a proprietary technology that is cold cathode x-ray source as opposed to the traditional high intense hot cathode x-ray machines we use now which require high heat output with vacuum tubes and that requires large robust cooling systems to prevent from overheating.
These older systems not only need high voltage power output but take up a lot of space which make it impractical to have a clinics or regular hospitals.
Nanox Innovates this by:
Requiring less power and cooling so less bulky components needed.
Is compact, designed for portability ideal for clinics or even mobile units.
Smaller, Affordable but what about the Radiologists Shortage?
Nanox has an unintended solution for this as well with its Nanox.AI system, this AI system is meant to fill the gap by pre-analyzing scans and supporting diagnosis. This system has over millions of scans (CTs, Xray, Etc) in its database and is used to :
Preliminary scan for markers of lung cancer, cardiovascular diseases and fractures.
By preliminary scanning these Nanox.AI can reduce the turnaround times for radiologists as it swifts and scores critical cases for review, helping radiologist focus on the most urgent scans.
These scans can be eventually help remote healthcare systems deliver a diagnostics without requiring an onsite Radiologists. Effectively being able to provide scan reviews to rural areas of the world as well where Radiologists may not be accessible.
Nanox AI was just given clearance by the FDA on February 2024
Ok, They might be on to something. . . What’s The TAM (total addressable market)
If Nanox is able to execute on their mission and provide this system and healthcare to their target demographic that has no access to x ray imaging equipment, which according to the W.H.O is 2/3s of the earths population, they could in theory unlock a new total addressable market which is approximately 5-10 billion annually in remote / rural parts of the world.
As it currently stands the TAM for x-ray machines is ~13 billion annually according to allied market research for the current addressable market.
Combined together it has a potential TAM of ~15-20 billion annually and half is expected to grow at 6.4% CAGR from 2023-2032.
Alright Rick, were talking numbers now what’s the Price Target?
If Nanox is able to capture 20% of the rural parts of the projected addressable market from its xray machines and help alleviate the bottle neck issue to come in the next year with its Nanox Ai system with another 10% of market share annually we’re looking at a potential ~300 million in revenue.
This is a very aggresive stance and projection as it stand the company is at its very infancy and still working on getting regulation approval in the EU and recently received FDA approval on its systems within the last 2 years. So this could fall flat on its face or it could have a huge runway from here and begin to innovate and solve bottle neck issues before they even start so bear with me here.
As it stands NNOX 0.00%↑ is trading at $6 dollars a share at a $370 million market cap with a pretty expensive price to earnings ratio of 35, with only ~10 million in revenue.
If they manage to achieve these milestones the stock with a revenue of $370 million with an average price to sales ratio of 35 would be valued at a ~10 billion market cap if you divide this by its current outstanding shares of 55.5 million you’re looking at a. .. … drumrolllll price target of ~$189.
This is a 3,000% + with potential to grow way way past this if it goes truly innovates and reaches it total addressable market and goals can be a 10,000 % gainer.
I will be doing further posts on this is, just the intro as I have reviewed and drew more straws to pull from their latest earnings call on 11/21/2024 so make you hit the button below!
Disclosure: I am currently long NNOX 0.00%↑ and will be slowly add as this story unfolds.
