Conversation 167: Painchek [ASX:PCK]
PainChek CEO says it is heading towards $6 to $7 million in recurring revenue, but…
…despite this, and its already solid $2.6m in recurring revenue , the share price of PainChek has fallen almost 60 % this year.
PainChek’s technology uses an algorithm that quickly and accurately measures the level of pain a person is feeling, which is particularly useful in dementia patients and small children. More on how it works here.
As I write this, if you compare the market capitalisation [value] of PainChek against other similar companies, which are generating relatively very little revenue, the PainChek story is even more confusing.
“I think that the share price clearly under represents our achievements as we are no longer a speculative company” CEO Philip Daffas said.
“The share price is lagging and a bit like my experience at Cochlear, the more we deliver, the more the share price will evolve” he told me in my recent interview.
As a share holder in PainChek myself, I hope he is right.
On paper at least he should be, especially considering the company announcements since the start of August alone.
Expanded integration partnerships in Care Management System (CMS) providers who cover ~80% or 180,000 of the aged care beds in Australia and more than 50,000 beds in the UK.
Acceptance of application by Chinese Patent Office which follows patents granted in Australia, Japan and the US.
PainChek completes $10 million fund raising to accelerate growth opportunities including international expansion and development of new products
Corporate video on how PainChek app works.
AND THEN THERE’S THE IMPACT OF COVID
A couple of years ago, PainChek developed a digital platform for training, but since the advent of COVID-19 that platform has potentially become one of the most valuable tools in the businesses global expansion plans.
That and the $10 million dollars they raised recently to expedite the global roll out.
Faced with no way of seeing potential customers face to face, PainChek tweaked up it’s eLearning platform, thus digitizing every aspect of the sales, training and installation process.
I hope you enjoy my interview with CEO Philip Daffas. Let me know your thoughts and feedback.
[IMPORTANT: THIS ARTICLE AND INTERVIEW IS BY NO MEANS A DEFINITIVE EXPLORATION OF THE BUSINESS FEATURED AND NO INVESTMENT DECISIONS SHOULD BE MADE BASED ON THIE INFORMATION FOUND ANYWHERE ON THIS WEBSITE. PLEASE READ OUR FULL DISCLAIMER BEFORE MAKING ANY INVESTMENT DECISIONS ABOUT ANY COMPANIES MENTIONED ON THIS WEBSITE AND SEEK THE ADVICE OF A PROFESSIONAL ADVISOR.]
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SHARE PRICE TREND OVER 200/100/9 DAYS l ANALYSTS VIEWS l TECH AND COMMERCIAL READINESS INDEX
ABOUT PAINCHEK:
PainChek® Ltd is an Australian based company that develops pain assessment technologies. PainChek® is a smart-phone based medical device using artificial intelligence to assess and score pain levels in real time and update medical records in the cloud. PainChek® records a short video of the person’s face and analyses the images that indicate pain and records them. Next, the caregiver uses PainChek® to record their observations of other pain related behaviours that complete the assessment. Finally, PainChek® calculates an overall pain score and stores the result allowing the caregiver to monitor the effect of medication and treatment over time. PainChek® is being rolled out globally in two phases: first, PainChek® for adults who are unable to effectively verbalise their pain such as people living with dementia, and second, PainChek® for Children who have not yet learnt to speak. The PainChek® Shared Care Program is a PainChek® licensing model which enables a professional carer to share their resident or patient data securely with other healthcare professionals or designated homebased family carers for ongoing pain assessments or clinical data review.
USEFUL LINKS
TECHNOLOGY AND COMMERCIAL READINESS.
Based on the Technology Readiness Level [TRL] developed by NASA and the Commercial Readiness Index [CRI] that grew out of it. PainChek would fit somewhere between 3 and 4 on the CRI.
SOME OF THE RECENT MARKET ANNOUNCEMENTS BY PAINCHECK:
PainChek® expands integration partnerships with Care Management System providers
SOME RATINGS FOR PAINCHEK [ASX:PCK]
[CURRENT ON TUESDAY 25TH AUGUST 2020]
Morningstar Quantitative [algorithmic] Rating *
Valuation Rating: Overvalued. Fair Value Estimate: 0.092.
Fair Value Percentage Diff - 8.33% Liquidity: High
DISCLOSURE
The author does own shares in this company at the time of writing this post. Inside Market does not accept any payment from this or any other company we cover. Inside Market charges a licensing fee for the re-publication of any content on this site. Any information in this article or anywhere on the InsideMarket site should be considered in any way, a recommendation to invest in this or any other company covered here. Nor should it be seen as a form of financial or investment advice. Disruptive technology stocks should be considered very speculative, high-risk, and extremely volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer. Insidemarket.net is intended for general news and information purposes only. Nothing in Insidemarket.net constitutes or is intended to constitute investment, financial, property, business, marketing, accounting, mortgage or legal advice and should not be relied upon by any person as a substitute for professional advice. Readers are strongly encouraged to seek independent legal, financial or other relevant or applicable advice before making any related decision. READ FULL DISCLAIMER HERE
* The Morningstar rating uses a machine-learning model to rate 22 times more funds than are rated by Morningstar analysts in EMEA and Asia.
The Quantitative Rating is an extension of the recently enhanced Morningstar Analyst RatingTM for funds (Analyst Rating), which provides an analyst's forward-looking assessment of a fund's ability to outperform its peer group or a relevant benchmark on a risk-adjusted basis over a full market cycle. Morningstar EMEA and Asia manager research analysts assign Analyst Ratings to approximately 1,260 open-end and exchange-traded funds and together with the Quantitative Rating, cover approximately 29,200 funds, representing nearly 105,000 share classes in EMEA and Asia.