Is Zynex, Inc. overvalued or undervalued?

As of 29 April 2025, the valuation grade for Zynex, Inc. has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued given its financial metrics, including a Price to Book Value of 3.30 and an EV to Sales ratio of 0.63, which suggests that the market is pricing the stock higher than its underlying assets and sales performance would warrant. Additionally, Zynex's negative ROE of -35.68% and ROCE of -12.70% further highlight its struggles in generating returns for shareholders.
In comparison to its peers, Zynex's valuation appears less favorable; for instance, CareDx, Inc. is rated very attractive with a P/E of -58.59, while AngioDynamics, Inc. is also rated risky with a P/E of -21.90. These comparisons reinforce the notion that Zynex is not only underperforming relative to its industry but is also facing significant challenges that may hinder its recovery. Furthermore, Zynex's stock has significantly underperformed against the S&P 500, with a year-to-date return of -70.16% compared to the index's 2.44%.