Why is ReShape Lifesciences, Inc. ?
1
Poor Management Efficiency with a low ROE of 0%
- The company has reported losses. Due to this company has reported negative ROE
2
The company has declared negative results in Mar'2025 after 2 consecutive positive quarters
- INTEREST(9M) At USD 0.04 MM has Grown at inf%
- NET SALES(Q) At USD 1.24 MM has Fallen at -30.76%
- RAW MATERIAL COST(Y) Grown by 16.72% (YoY)
3
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -99.05%, its profits have risen by 44.3%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -99.05% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is ReShape Lifesciences, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
ReShape Lifesciences, Inc.
-99.09%
-0.05
1970.76%
S&P 500
13.22%
0.96
19.87%
Quality key factors
Factor
Value
Sales Growth (5y)
19.93%
EBIT Growth (5y)
10.11%
EBIT to Interest (avg)
-17.12
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-2.03
Sales to Capital Employed (avg)
3.12
Tax Ratio
0.96%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
3.45%
ROCE (avg)
0
ROE (avg)
0
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
2.51
EV to EBIT
-0.09
EV to EBITDA
-0.09
EV to Capital Employed
-0.46
EV to Sales
0.08
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
-501.25%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD -7.7 MM
ROCE(HY)
Highest at -101.49%
NET PROFIT(9M)
Higher at USD -4.46 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -70.66 %
-18What is not working for the Company
INTEREST(9M)
At USD 0.04 MM has Grown at inf%
NET SALES(Q)
At USD 1.24 MM has Fallen at -30.76%
RAW MATERIAL COST(Y)
Grown by 16.72% (YoY
PRE-TAX PROFIT(Q)
At USD -1.91 MM has Fallen at -24.4%
NET PROFIT(Q)
At USD -1.92 MM has Fallen at -24.57%
Here's what is working for ReShape Lifesciences, Inc.
Operating Cash Flow
Highest at USD -7.7 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Debt-Equity Ratio
Lowest at -70.66 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for ReShape Lifesciences, Inc.
Interest
At USD 0.04 MM has Grown at inf%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Net Sales
At USD 1.24 MM has Fallen at -30.76%
over average net sales of the previous four periods of USD 1.79 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (USD MM)
Pre-Tax Profit
At USD -1.91 MM has Fallen at -24.4%
over average net sales of the previous four periods of USD -1.54 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
At USD -1.92 MM has Fallen at -24.57%
over average net sales of the previous four periods of USD -1.54 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Raw Material Cost
Grown by 16.72% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






