Is DataMeds AI, Inc. (MEDS) a good stock to buy?

Price through Oct 21 market close · SEC data refreshed 9 days ago ⓘ · Not investment advice
DataMeds AI, Inc.
MEDS Consumer Defensive Drugs, Proprietaries & Druggists' Sundries📄 SEC filings ↗
Speculative
For understanding the business, not timing a buy: nothing on our pages has picked stocks that beat the S&P 500. Why
Looks dangerous ●●●●●

Two or more of our tested checks point the wrong way. When the survival check is one of them, no price makes that acceptable.

What each rating means, in numbers

Business quality — Very weak. Passes 2 of the 9 health checks we can measure — things like making a profit, turning it into cash, and not piling on debt. Across 131,000 company-quarters the weakest scorers went on to fail at 5.4% against 1.4% for the strongest, in every era and all twelve sectors.

How wild is the price? — Very wild. The share price swings about 90% in a typical year, which puts it in the most volatile fifth. Out of every 100 companies that swung like this, about 8.6 went bankrupt within the year. Across the three periods we tested that ran from 3.7% to 11.5%.

What "tested" means here, and why there is no score out of 100

Tested means the read was measured against what actually happened afterwards, on a history that keeps the companies that were later delisted, using only figures that had been filed on the day they are used. Survival was ranked on companies that really did fail. What an owner keeps was tested across the universe from 2011 to 2025.

The full record of everything we have tested is on the research pages.

Which benchmark. Over the period we tested, the median listed company returned +5.8% a year while the S&P 500 returned about +13.9% — the index is weighted by size and was carried by a handful of enormous winners. So "beats the index" and "beats the other companies you could have bought" are different questions. Where a read says it picks better companies, it means the second one. None of these gets you an index fund's return, and we would rather say that than imply otherwise.

The quality read is the strongest thing we have tested: 131,000 company-quarters across 5,300 companies, where the weakest scorers went on to fail at 5.4% against 1.4% for the strongest, holding in every era and all twelve sectors. It still says less likely to break, not likely to beat the market — every band in that study lost to the index at the median, because the median listed company does.

Each read is shown on its own rather than merged into a single score, so you can see which part is strong and which is weak instead of taking an average on trust.

Today's price assumes
8.2% a year
cash-flow growth for 5 years
We expect
15.0% a year
from its history and its industry
Chance growth reaches at least 8.2%
about 81%
from how past estimates like ours turned out
Chance revenue grows at least 8.2% a year over the next: 3 months 73% · 6 months 72% · 1 year 71% · 2 years 70% · 5 years 81%

The market expects less growth than we do, by 6.8 points a year. The recent filings look steady, so the market may be pricing a risk the numbers do not show yet. Check recent news and filings.

Not a stock pick. This shows what the price assumes. None of our numbers has picked stocks that beat the S&P 500 so far. What we tested →

How we get our growth number, and how often it has been right

How often it has been right: on 3,782 filings, 1,129 companies, 2014-2021, scored on the next five years of revenue, our estimate missed actual growth by a median 4.3 points a year; the growth implied by the price missed by 8.8. Ours was the closer of the two 69% of the time.

For companies like this one (revenue growing 10% to 20% a year over the past five years): our estimate missed by a median 4.4 points a year and the price's implied rate by 8.8; ours was closer 68% of the time. The chance above uses this group's own record.

Do fast growers break it? No. Tested by how fast companies had been growing, we did not underestimate fast growers (if anything slightly the reverse), and leaning more on their own past made the estimate worse, not better: their growth fades faster than it looks.

Who has been closer, by time window (same two numbers, scored on what revenue actually did):

WindowOur typical missMarket's typical missOurs closer
3 months8.1 pts11.9 pts61%
6 months8.2 pts12 pts61%
1 year7.7 pts11.6 pts62%
2 years6.9 pts11.1 pts64%
5 years4.3 pts8.8 pts69%

Is the chance above honest? We built these chances on 2014–2018 and checked them on 2019–2021: when they said about 15%, it happened 16% of the time; about 25%, 25%; about 50%, 50%.

Growth is scored on revenue over the next five years.

▾ What goes into the smart-money reading
Valuation (price vs model IV) (40%) 92/100 → +36.8
Smart money (short interest + insider buying) (30%) 51/100 → +15.3
Macro backdrop (VIX, curve, credit, fear/greed + week-over-week momentum) (30%) 37/100 → +11.1
Total63/100

Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend, DCF applicability). It excludes the Altman Z score, whose retained-earnings input this filer does not report separately. See the Financial Health section for the full balance-sheet read.

💵 Price $2.72 · through Oct 21 market close 📄 Financials SEC EDGAR · refreshed 9 days ago
Business type Speculative micro-cap ⓘ Stock is too small / too volatile for our standard models to produce reliable signal
20%
vs 14% normally
Ordinary
The market, not this company tested

Chance the S&P 500 falls 10% or more in the next three months.

Counted from every day since 2006. Says nothing about MEDS — see the board for how it is measured.

📍 Where to start on this page, and what to look at first

How to read MEDS (speculative micro-cap)

No model can pin a precise fair value on a company this small — but that does not mean there is nothing to learn. The useful questions are what the price is betting on, and whether the company can survive long enough to deliver it.

Where to start — the sections that matter most for this stock
  1. 1 Reverse-DCF — what growth the price assumes ↓
    The single most useful number here: it backs out the growth the market is paying for. If that figure is "historically unprecedented," the price is running on hype, not fundamentals.
  2. 2 Cash runway ↓
    A pre-profit micro-cap lives or dies on whether it can fund itself to profitability before running out of money and diluting you.
  3. 3 The raw financial statements + the 10-K ↓
    At this scale, the actual numbers, insider ownership, and share-count trend tell you more than any ratio.
Or — what are you trying to decide?
A note on process: fear-driven decisions — including fear of missing out — tend to be the expensive ones. A stock up 10% a day for three days is excitement, not evidence. Whichever reader you are, the data below is there to be checked before anything is decided.
🚀
"It's surging — should I chase it?"
The momentum / FOMO trade. Before you chase, see whether the people who know it best are quietly selling into the rally.
⚖️
"Is it worth what it costs?"
The valuation trade. Our DCF, the growth the price implies, and a calculator you drive yourself.
🏷️
"Is it a cheap bargain?"
The deep-value trade. How far below assets and our value it trades — and whether it's cheap for a reason.

Is DataMeds AI, Inc. (MEDS) overvalued?

Macro: Neutral / mid-cycle

Yes, by our measure: the price is about 122% above what we think the business is worth.

MEDS trades at $2.72 vs an estimated intrinsic value of $1.22 — a +122.5% premium to model IV.

Discount-rate sensitivity: $1.22 – $5.36 (Deeply undervalued → Deeply overvalued)
11.5% (higher required return) → $1.22 · 8.5% (lower) → $5.36
how is this calculated?
Pegged to beta 0.51 (cost of equity 8.5%); sector/quality cross-check at 11.5%. · 25% small-cap illiquidity discount applied.
Margin of safety
None — price is above our value
Macro regime
Neutral / mid-cycle
No extreme readings in either direction. Stock selection matters more than macro positioning right now.

Not investment advice. The model can be wrong. Verify the assumptions in the sections below and consider consulting a licensed advisor for significant decisions.

What return would MEDS pay as a bond?

Not measurable here. Pre-profit: the coupon is projected, not earned. An equity bond needs a coupon that exists today. See the cross-company ranking →

ⓘ Why does MEDS trade at $2.72?

DataMeds AI, Inc. has 3.1 million shares outstanding (the latest count on file; the year-by-year checks below use each fiscal year's own count). At $2.72 per share, the market values all outstanding MEDS equity at $8.3 million. That's market capitalization, not enterprise value — enterprise value also accounts for debt and cash — and it matters here because MEDS carries substantial debt. That total, not the share price, is what we compare with what the business produces. Play with the share-price calculator on the homepage →

Loading insider & short-seller data…
Checking filings for failure warnings…

What growth must the market believe? ?Reverse DCF — Instead of asking "what is this stock worth?", asks "what growth rate is the current market price already assuming?"
Why it matters: It crystallizes the bull thesis as a single number you can argue with. If the market expects 40% growth for 10 years and you do not believe that, the stock is overvalued.
Reference: 10–15% = sustainable for strong companies · 20–25% = exceptional · 30%+ = historically very rare

Traditional DCF asks "what is this stock worth?" Reverse DCF flips it: it treats today's price as correct and solves for the growth rate that justifies it. In plain terms — if our model is right about everything else, the company's cash flow would have to grow (or shrink) by this much every year for the next 5 years for today's price to make sense. If that required growth looks unrealistic, the price is stretched; if it looks easy to beat, the price may be cheap.

To justify today's $2.72 price, MEDS's free cash flow?Free Cash Flow (FCF) — Operating cash flow minus capital spending: cash left after a company covers operating costs, taxes and interest and reinvests in the business — but BEFORE repaying debt principal or paying dividends. The cash actually available to investors.
Why it matters: A company can show big profits on paper while burning through cash. FCF is what actually fills the bank account.
Reference: Healthy mature businesses convert 8–15% of revenue into FCF · Growth companies often negative
Full explanation →
must grow at:
+8.2%
5-year FCF growth, then fading implied by today's price
The Quick Answers below give 6.9% for the same five years. That figure weights three scenarios and ends on an exit multiple; this one solves a single path ending on a perpetuity. Same question, same horizon, slightly different machinery — both at today's live price.
▾ Exactly how this 5-year figure is computed
Starting FCF/share: $0.17 (projected from revenue × terminal margin)
Forecast length: 5 years at the solved rate, then a linear fade to terminal growth over years 6-10 — the same shape the DCF above uses
Terminal growth after the fade: 3.0%
Discount rate: 11.5% (the rate the model used)
Price used: $2.72 — the live price shown on this page (not frozen)
Method: solve for the constant annual growth rate that makes the discounted 10-year FCF stream + terminal value equal today's price.
Reasonable

Within range of what a quality mature business delivers over five years. Not demanding.

For reference: Reasonable — a pace a quality business can hold for five years.

▾ How we computed this · Reality check thresholds · Assumptions
Inputs:
  • Starting FCF/share: $0.17 (projected from revenue × terminal margin)
  • Discount Rate?Discount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
    Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
    Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
    Full explanation →
    : 11.5% — standard 8-12%; 9-10% matches S&P 500 historical return
  • Terminal Growth Rate?Terminal Growth Rate — The growth rate we assume the company holds forever, after the explicit 10-year forecast period ends.
    Why it matters: It anchors the long-tail value. Cannot mathematically exceed long-term GDP growth or the company eventually becomes larger than the global economy.
    Reference: 2–3% (matches long-term US GDP growth) · Above 4% is mathematically problematic
    Full explanation →
    : 3.0% — matches long-term GDP growth
  • Forecast horizon: 10 years explicit + terminal perpetuity
Reality-check scale:
≤ 0%Priced for decline — likely undervalued OR dying business
5-12%Reasonable; sustainable for quality businesses
12-18%Demanding — strong execution required
18-25%Exceptional — few companies sustain for a decade
25-35%Heroic — historically very rare
35%+Borderline impossible at scale

Sustaining 30%+ cash-flow growth for a full decade at scale is exceedingly rare — the bar is brutally high.

Price against our valuation methods
Inside every range
●●●●●
2 methods compared
What this rating means

What the rating says — Inside every range. The current price sits inside each method's range — roughly fair on this blended view.

What it does not say — Not a forecast. This shows where today's price sits against several different ways of valuing the business. Where the methods disagree, the spread itself is the useful part - it tells you how much the answer depends on which one you trust.

No method wins for this kind of company. We tested each of these inside this business type and none separated better than the others by enough to trust, consistently, across periods. Read the spread below as how much the methods disagree — which is worth seeing — and not as a ranking.

⚠ At today's price, the market values MEDS at about 1.4× its annual sales — a typical established company trades around 1–3×. Standard industry multiples (the bars below) collapse toward $0 at this scale, so they aren't the useful read. For a micro-cap with sales, lean on the Reverse-DCF (what revenue growth that price implies), the Momentum trend, and cash runway — see 📍 What to focus on.

Football field: where does the price sit?

Both bars below come from our own cash-flow model — one tries a range of growth rates, one shows our three scenarios. A third bar comparing MEDS with similar companies appears only when there are enough close peers to trust it, and there aren't here. So this shows how much the answer depends on growth, not a set of independent checks.

$0$2$4$6$8Current price $2.72If FCF grew -5%/yr → 21%/yr (flat 10-yr DCF sweep; model assumes 15.0%)$1.20$7.41Our model's scenarios (conservative → optimistic; ◆ base, ● weighted 40/35/25)$0.08$2.99weighted $1.22base $1.28
The current price sits inside each method's range — roughly fair on this blended view.

Industry multiples sourced from: broad market average (sector unknown).

How to read a company this small

MEDS is too small and/or too volatile for the valuation lenses we use on larger, more stable companies. The numbers shown below should be taken as rough orientation only.

✅ What actually drives value for this kind of company
  • Market cap $8.3M — nano-cap territory (below $50M)
❌ Metrics that DON'T apply (ignore these even if you see them below)

Growth percentages on tiny revenue bases (1000% going from $200K to $2M is not predictive). P/E and ROE swing wildly with small earnings changes. Peer comparisons fail because there often aren't comparable companies at this scale.

📚 Where to actually look

Start with the Reverse-DCF above — it backs out the growth the price is betting on; if that figure is "historically unprecedented," the price is running on hype, not fundamentals. Then the cash runway (can it fund itself to profitability before diluting you?). Then the raw Financials table and the 10-K on SEC EDGAR — at this scale, insider ownership and the share-count trend often matter more than any ratio.

Classified as Speculative Nano / Micro-cap (confidence 80%). Disagree? An admin can override via the post edit screen.

Quality & solvency checks

Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.

Business quality
Very weak
●●●●●
Passes 2 of 9 checks
What these health ratings mean, in numbers

Business quality — Very weak. Passes 2 of the 9 health checks we can measure — things like making a profit, turning it into cash, and not piling on debt. Across 131,000 company-quarters the weakest scorers went on to fail at 5.4% within a year against 1.4% for the strongest, and that held in every era and all twelve sectors. It says "less likely to break", not "likely to beat the market".

The workings
Altman Z-Score?Altman Z-Score — A bankruptcy-risk score combining 5 financial ratios into one number. Predictive of bankruptcy within 2 years.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
n/a
Not reliably computable

We can't produce a trustworthy Altman Z here: retained earnings weren't separately reported in our data, so a core input would have to be fabricated. Rather than show a categorical "distress" verdict from an invented number, we mark it unavailable. Judge financial health from the leverage, cash position, and the measurable Piotroski checks instead.

Piotroski F-Score?Piotroski F-Score — A 9-point quality checklist scoring profitability, leverage, and operating efficiency.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
2 / 9
Weak
▾ The checks — what passed, what didn't (and what we couldn't measure)
  • ✗ Positive net income
    Net income -$101.3M in FY2025.
    Why this matters: Does the company actually earn a profit? Sustained losses eventually force it to raise money — diluting you — or take on debt.
  • ✗ Positive operating cash flow
    Operating cash flow -$10.9M (was -$1.2M the prior year).
    Why this matters: Profit can be an accounting figure; cash from running the business is harder to fake. Negative operating cash flow means the core business consumes cash and must be funded externally.
  • ✓ Cash flow backs up reported profit
    Operating cash flow -$10.9M vs net income -$101.3M.
  • ✗ Return on assets improving
    Return on assets -332.5% vs -12.0% a year ago.
    Why this matters: Is the company squeezing more profit out of each dollar of assets than last year? Rising = getting more efficient; falling = the opposite.
  • ✗ Debt load (vs assets)
    Long-term debt is 41.4% of assets vs 20.0% a year ago ($12.6M of $30.5M assets).
    Why this matters: Rising debt relative to assets means more risk and more cash going to interest instead of shareholders. Falling debt is a sign of strengthening.
  • ✗ Short-term liquidity (current ratio)
    Current ratio 0.09x vs 0.40x a year ago — below 1.0, a caution flag.
    Why this matters: The current ratio compares assets it can turn to cash within a year against bills due within a year. Below 1.0 means it may struggle to cover near-term obligations.
  • ✗ Share count (dilution)
    Share count rose 50.2% (47.3M → 71.0M, average shares for the year, fiscal 2024 → 2025).
    Why this matters: Issuing lots of new shares splits the pie into more pieces, shrinking your slice. Stable or falling share count protects existing owners.
  • ✗ Gross margin improving
    Gross margin -27.5% vs 9.7% a year ago.
    Why this matters: Rising gross margin means stronger pricing power or lower input costs — a sign of competitive strength. Falling margin signals pressure.
  • ✓ Sales per asset (asset turnover)
    Asset turnover 0.77x vs 0.32x a year ago.

Missing data is never counted as a pass or a fail — it's shown as n/a and excluded from the denominator. Each check compares the company against its own prior year.

Cash Runway
0 mo
CRITICAL — under 6 months of cash

Plain English: the company holds about $0M in cash and is burning roughly $11M/year in operations. At that pace, the cash lasts 0 mo before it must raise capital (diluting shareholders), take on debt, or cut spending.

Assumes constant burn and ignores financing/asset sales. For pre-profit biotech and growth companies, this matters more than a DCF — a great drug pipeline is worthless if they run out of money before approval.

What if you assume different inputs?

Here's where we land — and what happens if you change the assumptions. Drag the sliders to set your own Discount Rate?Discount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation →
(the annual return you demand for single-stock risk) and terminal growth; the value updates live so you can see whether the stock looks cheaper or richer. The discount rate starts at 11.5%, the figure our model used for MEDS. Open Advanced to also change beta, growth and the rate path.

Note: the calculator opens at our published value of $1.22 — it is initialised to the same scenario-weighted result, so the two match exactly on load. The moment you move a slider, the value below becomes a single-path what-if at your assumptions (not the three-scenario weighting), which is why it can differ from the headline once you've touched it.

Scenario-weighted model IV (40/35/25 assumed weights)
$1.22
It trades at
$2.72
Premium to model IV
+122.5%
Price is 122% above model IV — it looks overvalued. Change the assumptions below to see what would justify today's price.
We value this stock at two discount rates and report the range between them:
8.5% — beta-based (CAPM), from this stock's Beta?Beta — How much the stock moves when the overall market moves. 1.0 = moves with the market; 1.5 = moves 50% more than the market.
Why it matters: Higher beta = more volatile = should demand higher discount rate. Low beta stocks (utilities, consumer staples) move less.
Reference: Most stocks 0.5–1.5 · Defensives ~0.3 · High-vol tech ~1.5–2.0
Full explanation →
of 0.51.
The safe Treasury rate plus a premium scaled by how much more (or less) volatile the stock is than the market.
11.5% — sector/quality tier. A simpler hurdle set by industry and business durability: lower for stable, wide-moat companies; higher for speculative or micro-caps.
The headline value and this calculator start at 11.5% — the more conservative sector/quality rate (we use the more conservative sector/quality rate when model applicability is limited or the balance sheet is stretched). Drag the slider to the other rate to see the full range.
4.5% (slider minimum)9-10% normal18% (deep-risk)
0%2-3% (GDP)5% (rarely sustainable)
Value at your assumptions (opens at our published value; becomes a single-path what-if once you move a slider)
$1.22
vs today's $2.72
+122.5%

At the default assumptions the flat path lands near our published value of $1.22. Move any slider to recompute it with your own.

Pre-profit estimate: assumes a path to a mature free-cash-flow margin (sector norm by default; change it under Advanced).

For comparison — the revenue growth today's price already assumes
+8.2%
at the default assumptions

Move any slider above to recompute this against your own assumptions.

⚙ Advanced — tinker with every input (beta, growth, rate path, margin → full intrinsic value)
Where the discount rate comes from — discount rate = risk-free + beta × equity-risk-premium
What you'd earn risk-free from government bonds — the floor under every other rate. Slide it down to model the market expecting rate cuts (value rises); up for higher-for-longer.
The extra yearly return investors demand for owning stocks instead of safe bonds — the price of risk. History runs ~4.5–6.5%; we default to 5.5% (slightly conservative). It's an estimate, not a law — lower it if you think equities are less risky than that.
Inflation reduces the purchasing power of a nominal return: a 9% gain at 3% inflation is about 6% in real terms. The intrinsic value above is already in today's dollars (a nominal DCF carries inflation in both the growth and the discount rate), so this switch does not change the value — it restates the return in real terms.
Higher beta → higher discount rate (sets the rate above). 1.0 = moves with the market.
What you think MEDS can grow revenue for ~5 years, then fades to terminal.
When cash flow cannot be used directly, the model works from revenue: this is the % of revenue that ends up as free cash flow once the business is mature. (Our published value uses the sector norm.)
All inputs start at the values our model used.

    Copy shareable link to this scenario →

    Price$2.72
    Model IV$1.22
    Premium to IV+122.5%
    DCF applicabilityMedium
    Return to IV (3yr, annualized)-23.4%

    DataMeds AI, Inc. (MEDS) is well above the model value; the price is 122.5% above intrinsic value?Intrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
    Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
    Reference: Model-derived; quality depends on data and assumptions.
    Full explanation →
    (a 122.5% premium). The market may be paying up for potential future growth in its AI-driven healthcare solutions, which are not fully captured by a backward-looking model. The biggest risk to our model's base assumptions is that operating cash flow, which was NEGATIVE latest (positive 0/3 yrs), continues to decline, making the modeled +15.0% growth rate too high.

    ⚠️ FCF negative: revenue/margin growth model projects future cash flows from revenue trajectory.

    As of 9 days ago

    Anatomy of a share

    What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.

    MEDS DataMeds AI, Inc. stock anatomy showing per-share revenue, operating expenses, free cash flow, and debt
    −433.9%
    loss
    Where each $1 of revenue goes
    For every $1 of revenue, MEDS currently loses 433.9¢ — costs exceed sales. A money-losing business can still be a good investment if losses are shrinking toward profitability; check the trend, not just the snapshot.
    Net margin = net income ÷ revenue (most recent fiscal year).
    Plain English: each share (at $2.72) represents $7.62 of revenue per share per year, $33.08 lost per share per year, and $21.73 of cash burned per current share (negative owner-earnings free cash flow) from the latest fiscal year. Each share carries $7.67 of total debt (interest-bearing borrowings, current + long-term — $23.5M in all). That is about 282% of the share price. The DCF does not start from that single year — it instead starts from a projected from revenue × terminal margin of $0.17 per share to capture a full cycle.
    What's free cash flow / what do these mean?

    Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.

    Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.

    Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real cost to shareholders even though no cash leaves the company). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.

    Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.

    What you actually need to decide

    Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.

    🐂 The Bull Case
    The most important operating factor is that the company must achieve positive operating cash flow and demonstrate a clear path to profitability, allowing underlying cash flow to stabilize and grow around the modeled +15.0% business rate.
    🐻 The Bear Case
    The biggest operating risk is that the current negative operating cash flow of -$10.9 million and negative net income of -$101.3 million continue, leading to further cash burn and increased reliance on external financing, rather than improving towards the market's implied expectations.
    📌 Signposts to watch — update your view as these print
    • Improvement in operating cash flow towards positive territory
    • Growth in revenue from new AI solution adoptions
    • Reduction in net losses

    The trend, in plain numbers (FY2024 → FY2025, latest reported)

    Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.

    ✅ Improving
    • Revenue grew 28.7%, from $18.1M to $23.3M.
    ⚠ Worsening
    • Free cash flow is negative at -$66.5M — the cash burn widened from -$2.3M the year before.
    • Gross margin shrank to -27.5%, from 9.7% (−37.3 pts).
    • Still unprofitable at -$101.3M — loss widening from -$6.9M the year before.

    Management & Leadership

    Prashant Patel serves as the Chief Executive Officer, with Eric Michael Sherb as the Chief Financial Officer. Other key executives include Srinivas Kalla as Chief Information Officer and Nikul Panchal as Chief Pharmacy Officer.

    Prashant Patel
    Chief Executive Officer (per SEC Form 4, 2026-06-25)
    Eric Michael Sherb
    Chief Financial Officer (Principal Financial Officer) (per SEC Form 3, 2026-04-09)
    Srinivas Kalla
    Chief Information Officer (per SEC Form 3, 2025-04-24)
    Nikul Panchal
    Chief Pharmacy Officer (per SEC Form 3, 2025-03-14)

    What They Make

    DataMeds AI, Inc. (MEDS) develops and provides AI-driven solutions for the healthcare sector. While specific product segments are not available, it likely offers services to healthcare providers, pharmacies, and potentially pharmaceutical companies.

    End Markets

    Healthcare providersPharmaciesPharmaceutical industry

    Revenue Drivers

    AI software subscriptions
    Data analytics services
    Consulting and implementation
    Market Cap: 8.33MBeta: 0.51

    Why Is It Priced Like This?

    Why Customers Pay

    Improved operational efficiency for healthcare entities
    Enhanced data analysis for better decision-making
    Potential for personalized medicine solutions
    Intrinsic Value$1.22
    Premium to IV +122.5%
    Return to IV (3yr, annualized) -23.4%

    The market prices MEDS at a premium of +122.5% above the model's intrinsic value?Intrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
    Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
    Reference: Model-derived; quality depends on data and assumptions.
    Full explanation →
    , likely anticipating significant future growth from its AI-driven healthcare solutions. This optimism persists despite HEALTH SIGNALS showing Net income NEGATIVE latest (profitable 0/3 yrs) and Operating cash flow NEGATIVE latest (positive 0/3 yrs). The market may be assigning value to the potential for disruptive innovation in AI healthcare, which is not in the model.

    Three Scenarios, Weighted
    ScenarioIVPrice vs this valueWeight
    Conservative$0.083,197.0% premium40%
    Base$1.28113.3% premium35%
    Optimistic$2.998.9% discount25%
    Weighted$1.22122.5% premium100%

    Reading the last column: today's price compared with each scenario's value (price ÷ value − 1) — the same measure as the headline premium or discount, so the Weighted row matches it.

    Business Model & Valuation

    How They Make Money

    Subscription fees for AI software platforms
    Service fees for data analytics and insights
    Consulting and integration services for AI solutions

    The company funds itself through equity raises, as evidenced by its negative free cash flow?Free Cash Flow (FCF) — Operating cash flow minus capital spending: cash left after a company covers operating costs, taxes and interest and reinvests in the business — but BEFORE repaying debt principal or paying dividends. The cash actually available to investors.
    Why it matters: A company can show big profits on paper while burning through cash. FCF is what actually fills the bank account.
    Reference: Healthy mature businesses convert 8–15% of revenue into FCF · Growth companies often negative
    Full explanation →
    after stock comp of -$66.5 million and negative net income of -$101.3 million, with long-term debt RISING ($0M → $13M).

    Growth / Revenue DCF Medium

    Negative free cash flow: revenue/margin growth model used - standard FCF DCF is unreliable for companies still scaling.

    In plain English: we estimate MEDS's value by projecting its owner-earnings free cash flow (operating cash flow minus capital expenditure and stock-based compensation) into the future and converting it back to what it's worth today. We start from $0.17 per share (projected from revenue × terminal margin), assume revenue grows 15.0% per year for about 5 years (then gradually fades) while the cash margin builds toward its long-run level, and discount everything at 11.5% — the yearly return a buyer should demand for this much risk. After that it's assumed to grow 3.0% per year forever (roughly the long-run pace of the whole economy). A higher discount rate or slower growth means a lower value, and vice-versa — change any of these yourself in the calculator above.
    Owner-earnings FCF / share$0.17projected from revenue × terminal margin — smoothed, not the latest single year
    Growth (g₁) — 5yr15.0%Source: historical CAGR + sector defaults
    Discount Rate (r)11.5%
    Terminal Growth (gT)3.0%
    Show advanced inputs
    Revenue Growth15.0%

    What this model does NOT do: this is a consolidated owner-earnings cash-flow model. Standalone segment assumptions: none. It does not project its revenue segments independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.

    Maturity & Competitive Position

    Growth / re-investment phase

    Moat Signals

    Proprietary AI algorithms
    Data network effects (potential)
    Early mover advantage in niche AI healthcare

    Revenue was $23.3 million in the latest fiscal year, but net income and operating cash flow have been negative for the latest period and the past three years.

    Geography & Markets

    Geographic Risks

    Concentration risk in early-stage AI healthcare market
    Regulatory hurdles in healthcare technology adoption

    Market Signals

    These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.

    Model bearish, tape neutral
    RSI?RSI — Relative Strength Index — a 0-100 momentum gauge. Above 70 = overbought; below 30 = oversold.
    Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
    Reference: 30–70 normal · >70 overbought · <30 oversold
    Full explanation →
    (14)
    49.8NeutralMomentum is balanced — neither overbought nor oversold.
    MACD?MACD — Moving Average Convergence Divergence — compares a fast and a slow price trend to gauge momentum direction.
    Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
    Reference: Line above signal = bullish momentum · below = bearish
    Full explanation →
    BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
    50-Day Average$2.31Price above (+17.7%)Price above its 50-day average = near-term uptrend.
    200-Day Average$7.21Price belowThe 200-day line is the long-term trend divider — above it is generally considered a bull market for the stock.
    50 vs 200 CrossDeath50-day below 200-dayA "death cross" — the medium trend is below the long trend (often read as bearish).

    Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.

    Data Quality & Risk Flags (2 notes — click to expand/collapse)

    Guardrail Notes (2)
    • FCF negative: revenue/margin growth model projects future cash flows from revenue trajectory.
    • Illiquidity discount 25% applied (small/micro-cap — harder to exit, demand a margin).

    Financial Statements (5-year tables — click to expand)

    From DataMeds AI, Inc.'s SEC filings (EDGAR).

    Income (5yr)

    YearRevenueNet IncomeDiluted EPS
    202523.3M-101M$-1.43
    202418.1M-6.86M$-0.15
    2023—-2.90M$-0.06

    Cash Flow (5yr)

    CapEx is approximated. This filer reports capital expenditure under a company-specific tag our parser cannot read, so the CapEx column uses total investing outflow instead. That includes acquisitions and investment purchases, so the free cash flow shown is a conservative (lower-bound) figure in years with large deals.

    YearOperating CFInvesting outflow (capex proxy)− SBCFree Cash Flow
    2025 -10.9M 881,526 54.8M -66.5M
    2024 -1.22M — 1.08M -2.31M
    2023 -349,136 — not reported -349,136

    How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). Latest year: -10.9M − 881,526 − 54.8M (stock-based comp) = -66.5M. This is the same owner-earnings FCF definition the valuation model uses, though the DCF starts from the projected from revenue × terminal margin, not this single year.

    Balance Sheet

    Total Assets30.5M
    Total Liabilities42.9M
    Equity-12.4M
    Total Debt23.5M

    Similar companies worth a look

    Same sector and industry, similar fundamentals shape. Verify everything yourself — this list is computed mechanically and does not reflect our judgment about whether any of these are a good investment.

    Methodology by Pouyan Golshani, MD — founder of Gighz. Savng was built by a physician for busy professionals: every number on this page comes from SEC filings (EDGAR) and FINRA data through transparent, rules-based models — no analyst opinions, no hidden inputs. How we calculate every number →

    The questions people ask about MEDS

    Is DataMeds AI, Inc. (MEDS) a good stock to buy?

    DataMeds AI, Inc. (MEDS) looks expensive against its own cash flows: the price is about 122% above our $1.22 estimate. Whether it is a good buy depends on whether the company can grow faster than that price assumes, on its financial health, and on what insiders are doing. All three are on this page. This is educational research from SEC filings, not investment advice.

    Is DataMeds AI, Inc. (MEDS) overvalued?

    Yes, by our measure. DataMeds AI, Inc. (MEDS) trades at $2.72, about 122% above our estimate of $1.22 for what the business is worth. This is educational research from SEC filings, not investment advice.

    What is MEDS's intrinsic value?

    Our model estimates MEDS is worth about $1.22 per share, built from the cash the business is expected to generate, taken from its SEC filings. The market price is $2.72.

    What growth is priced into MEDS?

    Working backwards from today's price, the market expects MEDS's cash flow per share to grow by roughly 6.9% a year over the next five years. Compare that with the company's actual record on this page.

    Where do these numbers come from?

    From DataMeds AI, Inc.'s own SEC filings (10-K and 10-Q), Form 4 insider filings and daily market prices. Every figure on the page links to how it was calculated, and the model's weak spots are listed next to its results.

    ⚠️ Not investment advice. Automated model outputs, last refreshed 9 days ago (the analysis-refresh date, not the latest filing period). All models have blind spots. Full disclaimer →
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