MYO Stock Risk & Deep Value Analysis
Myomo Inc
Healthcare • Medical Devices
DVR Score
out of 10
What You Need to Know About MYO Stock
We analyzed Myomo Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran MYO through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Aggressive. Here's what we found.
MYO Risk Analysis & Red Flags
What Could Go Wrong
Myomo continues to burn cash with persistent net losses (TTM -$15.12M), requiring further equity dilution to fund operations if revenue growth (Q1 2026 revenue $10.1M) doesn't accelerate significantly and rapidly achieve profitability, thereby undermining shareholder value through increased share count.
Risk Matrix
Overall
Aggressive
Financial
High
Market
Medium
Competitive
Medium
Execution
High
Regulatory
Medium
Red Flags
- ⚠
Persistent net losses (TTM -$15.12M) and negative net profit margin (-36.69%) without a clear, near-term path to FCF positivity.
- ⚠
Revenue growth (Q1 2026 revenue $10.1M) may be insufficient to outpace operating expenses, despite improved gross margins (65.96%), leading to continued cash burn.
- ⚠
Heavy reliance on complex and potentially slow reimbursement expansion and distribution partnerships (like Ottobock) for growth, which can introduce unpredictability.
Upcoming Risk Events
- 📅
Q2 2026 Earnings Miss (estimated late July/early Aug 2026): If revenue growth decelerates or net losses widen again (e.g., net loss > $3.0M), signaling a reversal of Q1's positive trend and potentially triggering a significant stock price drop.
- 📅
Failure of Ottobock partnership to yield substantial results (mid-2027 review): If the distribution agreement does not translate into significant sales volume for MyoPro by mid-2027 (e.g., less than 15% revenue contribution), it would cast doubt on a key growth driver and require a revised strategy.
When to Reconsider
- 🚪
Exit if quarterly revenue growth falls below 10% YoY for two consecutive quarters, indicating a loss of market momentum and failure of growth strategies.
- 🚪
Sell if net loss per share widens beyond ($0.15) for two consecutive quarters, demonstrating increased cash burn per share without corresponding revenue acceleration.
- 🚪
Sell if the company announces a significant dilutive capital raise (e.g., >20% increase in shares outstanding) without a clear, near-term (next 12 months) path to profitability.
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What Does Myomo Inc (MYO) Do?
Market Cap
$54.29M
Sector
Healthcare
Industry
Medical Devices
Employees
184
Myomo, Inc., a wearable medical robotics company, designs, develops, and produces myoelectric orthotics for people with neuromuscular disorders in the United States, Germany, and internationally. The company offers MyoPro, a myoelectric-controlled upper limb brace or orthosis product used for supporting a patient's weak or paralyzed arm to enable and improve functional activities of daily living. It also provides MyoPro 2 that includes control technology, configuration software and user interface, and pop-out battery for extended use of the brace; and MyoPro2+, which comprises 3D printed orthotics capability, software enhancements, and a design for donning and doffing of the device. Its products are designed to help improve function in adults and adolescents with neuromuscular conditions due to brachial plexus injury, stroke, traumatic brain injury, spinal cord injury, and other neurological disorders. The company sells its products through various sales channels, including orthotics and prosthetics providers, the veteran's administration, and distributors. Myomo, Inc. was incorporated in 2004 and is headquartered in Burlington, Massachusetts.
Visit Myomo Inc WebsiteInvestment Thesis
If Myomo successfully leverages the Ottobock partnership to accelerate MyoPro unit sales and revenue growth to a $60M-$70M run-rate in FY2027, while maintaining gross margins above 65% and further narrowing its net loss, then the company's valuation could re-rate to 3-5x Price/Sales, implying a market capitalization of $180M-$350M. This is bullish because the current market cap of $50M implies significant undervaluation of its intellectual property and distribution potential if operational execution leads to a clearer path to profitability.
Is MYO Stock Undervalued?
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MYO Price Targets & Strategy
12-Month Target
$7.67
Bull Case
$15.00
Bear Case
$0.70
Valuation Basis
Based on analyst consensus target, which implicitly values the company at approximately 4.9x projected FY2027 revenue run-rate of $60M, considering its niche technology and market opportunity.
Entry Strategy
Dollar-cost average between $1.20 and $1.40, capitalizing on recent momentum while acknowledging the company's early stage. Target accumulation near strong support levels if they emerge.
Exit Strategy
Take 50% profit at $7.00, reassess remaining position above $12.00. Implement a stop-loss at $0.90 to limit downside risk.
Portfolio Allocation
7-10% for aggressive risk tolerance, considering the small market cap and high-risk, high-reward profile.
Price Targets & Strategy
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Is MYO Financially Healthy?
Valuation
P/E Ratio
-3.81
Forward P/E
-4.28
Price/Book
4.57
Price/Sales
1.40
Profitability
Gross Margin
65.96%
Operating Margin
-34.07%
Net Margin
-36.69%
Return on Equity
-114.87%
Revenue Growth
6.68%
EPS
$-0.36
Balance Sheet
Current Ratio
3.30
Quick Ratio
2.69
Debt/Equity
0.98
Cash & Equivalents
$16.27M
Cash Flow
Free Cash Flow
-$17.19M
Other
Beta (Volatility)
1.44
Does MYO Have a Competitive Moat?
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🛡️ Narrow
Moat Trend
Expanding
Moat Sources
3 Identified
The proprietary MyoPro technology, extensive R&D, and the significant time and capital investment required to achieve FDA clearances and establish reimbursement codes create a substantial barrier for new entrants. Patient-specific fitting and ongoing therapy also contribute to switching costs. The moat is strengthening as reimbursement expands and distribution widens.
Moat Erosion Risks
- •Emergence of a superior or more cost-effective competing technology from larger medical device companies.
- •Adverse changes in reimbursement policies or delays in securing new coverage, hindering market adoption.
- •Failure to continuously innovate or expand product offerings to maintain a technological edge.
MYO Competitive Moat Analysis
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MYO Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral. As a small-cap med-tech company, Myomo does not typically generate broad social media buzz, but analyst and institutional sentiment is positive.
Institutional Sentiment
Positive. Horton Capital disclosed a 6.0% stake and Joseph M. Manko Jr. joined the board effective May 9, 2026. Analyst consensus is 4 Buy, 0 Hold, 0 Sell with a median target of $7.67.
Insider Activity (Form 4)
Director F. Thomas Kirk bought 75,006 shares for approximately $68,243 in May 2026. CFO David A. Henry withheld 10,050 shares on June 8, 2026, for tax liabilities related to RSU vesting (not an open-market sale).
Options Flow
Normal options activity. No specific unusual options flow data was identified in the provided research.
Earnings Intelligence
Next Earnings
Estimated early August 2026 for Q2 2026
Surprise Probability
Medium
Historical Earnings Pattern
Likely sensitive to revenue growth and path to profitability; stock typically reacts positively to earnings beats and reduced losses, and negatively to misses or widening cash burn.
Key Metrics to Watch
Competitive Position
Top Competitor
Ekso Bionics (EKSO)
Market Share Trend
Stable to gaining ground in its niche, driven by expanding reimbursement and strategic partnerships, but no quantified market share shifts were provided.
Valuation vs Peers
Trading at a discount on a Price/Sales basis (approximately 1.2x TTM P/S) compared to growth-oriented medical technology peers which can command 3-10x+ P/S, reflecting Myomo's current profitability challenges and smaller scale.
Competitive Advantages
- •Proprietary technology and intellectual property (MyoPro 2+)
- •Established regulatory clearances (FDA, CPT codes) and reimbursement pathways (Medicare coverage)
- •Strategic distribution partnership with Ottobock, a leading orthotics and prosthetics company
Market Intelligence
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What Could Drive MYO Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings Report (estimated late July/early Aug 2026): Key focus on revenue acceleration beyond Q1's modest growth and further reduction in net loss, providing updates on MyoPro unit sales.
- •Update on expanded Medicare/commercial insurance coverage (Q3 2026): Any specific new state or national policy changes reducing patient out-of-pocket costs for MyoPro could significantly boost order flow.
Medium-Term (6-18 months)
- •Increased MyoPro adoption through Ottobock partnership (FY2027): If Ottobock's expanded distribution channels yield significant MyoPro unit sales increase, validating the strategic partnership and driving substantial revenue growth (e.g., >30% YoY).
- •New MyoPro product iteration/feature release (late FY2027): Enhanced functionality or reduced cost device that broadens the addressable market or improves patient outcomes, driving faster adoption and potentially higher margins.
Long-Term (18+ months)
- •Achieve sustainable Free Cash Flow (FCF) positive operations (FY2028-FY2029): If annual revenue reaches ~$100M with gross margins >65% and operating leverage reduces SG&A as a % of revenue, leading to positive operating cash flow, drastically re-rating valuation.
- •Strategic acquisition by a larger medical device company (FY2029+): As Myomo proves market penetration and reimbursement models, its niche technology could become an attractive bolt-on for a major player seeking to expand into neuro-rehabilitation robotics, at a premium valuation.
Catalysts & Growth Drivers
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What's the Bull Case for MYO?
- ✓
Quarterly revenue growth rate: Watch for sustained acceleration above 20% YoY, indicating successful market penetration.
- ✓
Adjusted EBITDA loss: Monitor for continued narrowing, aiming for breakeven within the next 12-18 months, signaling improved financial health.
- ✓
MyoPro unit sales via Ottobock: Look for specific commentary or numbers indicating successful ramp-up of the partnership and increasing contribution to overall revenue.
Bull Case Analysis
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Competing with MYO
See how Myomo Inc compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Myomo Inc MYO | $54.3M | 6.0 | -3.8 | $41.2M | -36.7% | 6.7% | |
AbbVie Inc ABBV | $381.1B | 0.1 | 104.8 | $15.0B | 5.8% | 9.5% | Compare → |
Johnson & Johnson JNJ | $557.1B | 1.0 | 26.5 | — | 21.8% | 7.9% | Compare → |
Eli Lilly and Co LLY | $965.0B | 0.5 | 52.6 | — | — | — | Compare → |
Pfizer Inc PFE | $146.4B | 4.0 | 19.5 | $62.6B | 11.8% | 1.4% | Compare → |
UnitedHealth Group Inc UNH | $365.5B | 0.3 | 30.3 | $447.6B | 2.7% | 9.7% | Compare → |
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How Myomo Inc Makes Money
Myomo Inc. designs, manufactures, and markets MyoPro, a line of wearable robotic orthotics (braces) specifically developed for individuals with neurological disorders such as stroke, spinal cord injury, or ALS. These FDA-cleared, myoelectric-controlled devices use signals from the user's muscles to help restore function and movement to weakened or paralyzed arms and hands. The company generates revenue primarily through the direct sale or rental of these advanced medical devices, often working with clinicians and rehabilitation centers, and by navigating complex insurance and government reimbursement pathways (like Medicare) to make its technology accessible to patients. Recently, strategic partnerships, such as with Ottobock, are expanding its global distribution footprint.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Myomo Inc (MYO)?
As of June 12, 2026, Myomo Inc has a DVR Score of 6.0 out of 10, placing it in the "Solid Pick" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Myomo Inc?
Myomo Inc's market capitalization is approximately $54.3M. The company operates in the Healthcare sector within the Medical Devices industry.
What ticker symbol does Myomo Inc use?
MYO is the ticker symbol for Myomo Inc. The company trades on the ASE.
What is the risk level for MYO stock?
Our analysis rates Myomo Inc's overall risk as Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of MYO?
Myomo Inc currently has a price-to-earnings (P/E) ratio of -3.8. This is below the market average, which could indicate the stock is undervalued or facing headwinds.
Is Myomo Inc's revenue growing?
Myomo Inc has reported revenue growth of 6.7%. The company is growing at a moderate pace.
Is MYO stock profitable?
Myomo Inc has a profit margin of -36.7%. The company is currently unprofitable.
How often is the MYO DVR analysis updated?
Our AI-powered analysis of Myomo Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on June 12, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for MYO (Myomo Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.