Chembio Diagnostics, Inc. (CEMI)
Chembio Diagnostics, Inc. develops, manufactures, and commercializes point-of-care diagnostic tests for various diseases. The company's products are sold globally to medical laboratories, hospitals, and governmental entities.
Company Overview
Chembio Diagnostics offers rapid point-of-care diagnostics for infectious diseases, providing critical testing solutions for COVID-19, HIV, and other global health threats. With a focus on innovation and strategic partnerships, Chembio aims to expand its market reach and improve global health outcomes, despite current financial headwinds.
Investment Thesis
Chembio Diagnostics presents a speculative investment opportunity, driven by its focus on point-of-care diagnostics and strategic partnerships. While the company currently faces financial challenges, including a negative P/E ratio of -0.47 and a negative profit margin of -48.2%, its innovative product pipeline and collaborations offer potential for future growth. Key value drivers include the expansion of its diagnostic test portfolio and increased adoption of POC testing solutions in developing countries. Upcoming catalysts include potential regulatory approvals for new tests and expansion of existing partnerships. Investors should consider the high beta of 1.86, indicating significant volatility. Success hinges on effectively commercializing new products and achieving profitability.
Key Highlights
- Market Cap of $0.02B reflects its small-cap status within the diagnostics industry.
- P/E Ratio of -0.47 indicates the company is currently not profitable.
- Profit Margin of -48.2% highlights significant challenges in achieving profitability.
- Gross Margin of 20.2% shows the percentage of revenue exceeding the cost of goods sold.
- Beta of 1.86 suggests the stock is more volatile than the market average.
Competitors
Strengths
- Established expertise in point-of-care diagnostics.
- Strong brand recognition with established product lines.
- Strategic partnerships with global health organizations.
- Diverse portfolio of diagnostic tests for various diseases.
Weaknesses
- Negative profitability and high operating expenses.
- Reliance on grants and collaborations for funding.
- High beta indicating significant stock volatility.
- Limited market share compared to larger competitors.
Catalysts
- Upcoming: Regulatory approvals for new diagnostic tests.
- Ongoing: Expansion of existing partnerships with global health organizations.
- Ongoing: Increased adoption of point-of-care testing solutions in developing countries.
- Upcoming: Positive results from clinical trials of new diagnostic tests.
- Ongoing: Development and commercialization of tests for neglected tropical diseases.
Risks
- Potential: Intense competition from larger diagnostic companies.
- Ongoing: Regulatory hurdles and lengthy approval processes.
- Potential: Fluctuations in funding and grant availability.
- Potential: Product liability claims and recalls.
- Ongoing: Negative profitability and high operating expenses.
Growth Opportunities
- Expansion of COVID-19 Testing Solutions: Chembio can capitalize on the ongoing need for COVID-19 testing, particularly in underserved communities and developing countries. The global COVID-19 diagnostics market is expected to remain significant, offering Chembio the opportunity to expand its market share through innovative and accessible testing solutions. Timeline: Ongoing, with continuous product development and adaptation to new variants.
- Development of New Diagnostic Tests for Neglected Tropical Diseases: Chembio is developing tests for diseases like malaria, dengue, and chikungunya, which disproportionately affect developing countries. These diseases represent a significant unmet need, and successful development and commercialization of these tests could drive substantial revenue growth. Timeline: 2-5 years for development and regulatory approval.
- Leveraging Strategic Partnerships with Global Health Organizations: Chembio's collaborations with organizations like the Bill & Melinda Gates Foundation and the Centers for Disease Control and Prevention provide access to funding, expertise, and distribution networks. Strengthening these partnerships and forging new ones can accelerate product development and market penetration. Timeline: Ongoing, with continuous collaboration and project expansion.
- Geographic Expansion into Emerging Markets: Expanding its presence in emerging markets, particularly in Africa and Asia, where the burden of infectious diseases is high, presents a significant growth opportunity for Chembio. This expansion requires strategic partnerships, regulatory approvals, and tailored product offerings. Timeline: 3-5 years for establishing a significant presence.
- Advancements in Point-of-Care Technology: Investing in research and development to improve the accuracy, speed, and ease of use of its point-of-care diagnostic tests can provide Chembio with a competitive advantage. This includes exploring new technologies and platforms to enhance the performance and accessibility of its products. Timeline: Ongoing, with continuous innovation and product improvement.
Opportunities
- Expansion into emerging markets with high disease burden.
- Development of new diagnostic tests for unmet needs.
- Increased adoption of point-of-care testing solutions.
- Leveraging partnerships for product development and distribution.
Threats
- Intense competition from established diagnostic companies.
- Regulatory hurdles and lengthy approval processes.
- Fluctuations in funding and grant availability.
- Potential product liability claims and recalls.
Competitive Advantages
- Proprietary diagnostic test technologies.
- Established brand recognition with STAT-PAK, SURE CHECK, STAT VIEW, and DPP trademarks.
- Strategic partnerships with leading global health organizations.
- Expertise in developing point-of-care diagnostic solutions.
About
Chembio Diagnostics, Inc., founded in 1985 and headquartered in Hauppauge, New York, is a key player in the development, manufacturing, and commercialization of point-of-care (POC) diagnostic tests. These tests are designed to rapidly detect and diagnose a range of diseases at the point of care, enabling quicker treatment decisions. The company's product portfolio includes tests for critical diseases such as COVID-19, HIV, Syphilis, and Zika virus. Additionally, Chembio is actively developing diagnostic solutions for other infectious diseases, including malaria, dengue, chikungunya, Chagas, ebola, leishmaniasis, lassa, marburg, leptospirosis, rickettsia, and Burkholderia diseases. Chembio sells its products under well-recognized trademarks like STAT-PAK, SURE CHECK, STAT VIEW, and DPP. These products are distributed directly and through distributors to a diverse customer base, including medical laboratories, hospitals, governmental and public health entities, non-governmental organizations, medical professionals, and retail establishments, both in the United States and internationally. Chembio has established strategic collaboration agreements with organizations such as the Bill & Melinda Gates Foundation, The Paul G. Allen Family Foundation, The Oswaldo Cruz Foundation, and the Foundation for Innovative New Diagnostics, as well as U.S. government agencies, including the Centers for Disease Control and Prevention, the Biomedical Advanced Research and Development Authority of the U.S. Department of Health and Human Services, and the U.S. Department of Agriculture.
What They Do
- Develop point-of-care (POC) diagnostic tests.
- Manufacture diagnostic tests for infectious diseases.
- Commercialize diagnostic tests globally.
- Offer tests for COVID-19, HIV, Syphilis, and Zika virus.
- Develop tests for malaria, dengue, and other tropical diseases.
- Sell products under the STAT-PAK, SURE CHECK, STAT VIEW, and DPP trademarks.
- Distribute products to medical laboratories and hospitals.
- Collaborate with global health organizations and government agencies.
Business Model
- Develop and manufacture point-of-care diagnostic tests.
- Sell diagnostic tests directly and through distributors.
- Generate revenue from product sales to medical facilities, government entities, and NGOs.
- Secure funding through grants and collaborations for research and development.
Industry Context
Chembio Diagnostics operates in the medical diagnostics and research industry, a sector experiencing growth driven by increasing demand for rapid and accurate diagnostic testing. The global point-of-care diagnostics market is projected to reach billions of dollars in the coming years, fueled by the need for faster diagnosis and treatment of infectious diseases. Chembio competes with companies like Access Bio (AIH), ACON Laboratories (ATON), Conformis (CFMS), Enzolytics (ENZB), and Kewaunee Scientific (KA), all vying for market share in this competitive landscape. The industry is characterized by technological innovation, regulatory scrutiny, and the need for strategic partnerships to expand market reach.
Key Customers
- Medical laboratories and hospitals.
- Governmental and public health entities.
- Non-governmental organizations (NGOs).
- Medical professionals.
- Retail establishments.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2022 | $9M | $-855,000 | $-0.04 |
| Q3 2022 | $11M | -$7M | $-0.21 |
| Q2 2022 | $9M | -$7M | $-0.23 |
| Q1 2022 | $19M | -$9M | $-0.29 |
Source: Company filings
Chart & Info
Price Chart
Chembio Diagnostics, Inc. (CEMI) stock price: $0.46 (+0.00, +0.22%)
Why Bull
- •Recent insider buying suggests confidence in the company's future, indicating that those closest to the business believe in its potential.
- •Community sentiment has shifted positively, with discussions highlighting innovative product developments that could drive growth.
- •Market perception is buoyed by recent partnerships that enhance the company's competitive position in the healthcare sector.
- •Analysts have noted an uptick in demand for CEMI's offerings, aligning with broader trends in health diagnostics that favor the company's growth.
Why Bear
- •Some investors express concerns about the company's ability to scale operations effectively, citing potential bottlenecks in production.
- •Recent social sentiment indicates skepticism regarding the sustainability of recent gains, with some traders advocating caution.
- •There are lingering worries about regulatory hurdles that could impact the company's product launches and market entry strategies.
- •Overall market volatility has led to a bearish outlook among some community members, who feel uncertain about the broader economic environment affecting CEMI.
Latest News
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Earnings Scheduled For May 5, 2022
benzinga · May 5, 2022
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55 Biggest Movers From Yesterday
benzinga · Feb 16, 2022
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45 Biggest Movers From Yesterday
· Dec 30, 2021
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Earnings Scheduled For August 5, 2021
· Aug 5, 2021
Technical Analysis
Rationale
AI-generated technical analysis for CEMI including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for CEMI.
Make a Prediction
Set your price target for Chembio Diagnostics, Inc. (CEMI), choose a timeframe, and track your prediction accuracy.
Current price: $0.46
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CEMI.
Price Targets
Wall Street price target analysis for CEMI.
Insider Flow (30d)
No insider trades in the last 30 days.
MoonshotScore
Score Factors
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Revenue Growth 5/100
Revenue growth data is currently unavailable for this company.
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Gross Margin 5/100
Gross margin data is currently unavailable for this company.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates CEMI's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does Chembio Diagnostics, Inc. do?
Chembio Diagnostics, Inc. specializes in developing, manufacturing, and commercializing point-of-care (POC) diagnostic tests. These tests are designed for rapid detection and diagnosis of infectious diseases such as COVID-19, HIV, Syphilis, and Zika virus. The company's products are sold under the STAT-PAK, SURE CHECK, STAT VIEW, and DPP trademarks, and are distributed globally to medical laboratories, hospitals, governmental entities, and NGOs. Chembio also collaborates with organizations like the Bill & Melinda Gates Foundation to develop new diagnostic solutions.
Is CEMI stock a good buy?
CEMI stock presents a speculative investment opportunity with significant risks and potential rewards. While the company's innovative diagnostic solutions and strategic partnerships offer growth potential, its negative profitability and high volatility warrant caution. Investors should carefully consider the company's financial performance, market position, and competitive landscape before investing. Success depends on effectively commercializing new products, securing funding, and achieving profitability. The high beta of 1.86 indicates that the stock is more volatile than the market average.
What are the main risks for CEMI?
Chembio Diagnostics faces several key risks, including intense competition from larger diagnostic companies, regulatory hurdles and lengthy approval processes for new products, fluctuations in funding and grant availability, and potential product liability claims. The company's negative profitability and high operating expenses also pose significant challenges. Additionally, the high beta of 1.86 indicates that the stock is more volatile than the market average, making it susceptible to market fluctuations and investor sentiment. These factors could negatively impact the company's financial performance and stock price.
Is CEMI a good stock to buy?
Whether CEMI is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the CEMI MoonshotScore?
The MoonshotScore for CEMI is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is CEMI data updated?
CEMI stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to CEMI is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for CEMI?
Growth catalysts for Chembio Diagnostics, Inc. (CEMI) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Chembio Diagnostics, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are CEMI's main competitors?
Chembio Diagnostics, Inc. (CEMI) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether CEMI has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about CEMI?
Wall Street analyst coverage for CEMI includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is CEMI's market cap?
Market capitalization (market cap) for CEMI is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows CEMI's current market cap alongside enterprise value and other valuation metrics.
How has CEMI stock performed recently?
CEMI's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing CEMI's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in CEMI?
Key risk categories for CEMI include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures CEMI's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling CEMI?
Insider trading activity for CEMI tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is CEMI a good stock for beginners?
Chembio Diagnostics, Inc. (CEMI) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is CEMI for first-time investors?
Every stock carries risk, including Chembio Diagnostics, Inc. (CEMI). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like CEMI.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Stock data pending update, which may impact financial metrics.
- Investment thesis based on current information and subject to change.
- This analysis is for informational purposes only and not investment advice.