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ZYBERNO

Stock Report

Updated Aug 21, 2026

KORU MEDICAL SYSTEMS, INC. (KRMD)

Healthcare • NASDAQ

$3.26

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

40.0/100

WEAK BUSINESS

KORU MEDICAL SYSTEMS, INC. (KRMD) scores 40/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full KRMD quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

-100.0%

Overvalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

🎯 Expected Annual Return →

-67.0%

Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)

1.2%

Yield + growth — what the business alone earns you, even if the market never re-rates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full KRMD valuation analysis · → View full KRMD Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-10.6%)

Debt-to-Equity (Solvency Risk):GOOD (0.35x)

Operating Margin (Operational Efficiency):CRITICAL (-3.7%)

Return on Capital (Capital Efficiency):CRITICAL (-12.6%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

KORU MEDICAL SYSTEMS, INC. (KRMD) stock report — Zyberno Score 40/100 (WEAK BUSINESS), Margin of Safety -100.0%, -67% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, KORU MEDICAL SYSTEMS, INC. (KRMD) trades at $3.26 against an estimated intrinsic value per share of $0.04 — a -100.0% Margin of Safety based on Owner Earnings of $407.90K TTM, projected at -50.0% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of -67.0% annually.

Over the trailing twelve months, KRMD generated $407.90K in Owner Earnings. Capital was deployed as follows: $535.24K invested in capital expenditures. Reinvestment rate: -7.6%. Owner Earnings have declined at 50.0% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:3.26

Market Cap:$150.23M

Valuation Multiples (3)

P/B Ratio:8.32x

P/S Ratio:3.33x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$145.04M

Pfcf Ratio:854.63x

Price Action & Momentum (3)

12-1 Momentum:

+15.9% (61th pctile)

📈 Click to view full KRMD Momentum analysis →

Momentum Percentile:61 / 100

% of 52-Week High:49.3%

B. Profitability Assessment

Return Metrics (5)

ROE:

-10.6%

📊 Click to view full KRMD ROE analysis →

ROA:-6.5%

Roic:

-12.6%

📊 Click to view full KRMD ROIC analysis →

Reinvestment Rate:-7.6%

Fundamental Growth Rate (g):1.0%

Margin Analysis (3)

Operating Margin Ttm:-3.7%

Net Margin Ttm:-4.0%

Ebitda Margin:-1.9%

TTM Performance (3)

Gross Margin Ttm:62.4%

Operating Margin Ttm:-3.7%

Net Margin Ttm:-4.0%

Yield Metrics (3)

Earnings Yield:-$3.01

Owner Earnings Yield:$0.27

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.15

📊 Click to view full KRMD Earnings Surprise analysis →

EPS Surprise vs Expected:700.0%

Latest Earnings Filed:2026-08-05

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):15.8%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-50.0%

Operating Cash Flow Growth Rate (Linear):-50.0%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:2.72x

Quick Ratio:2.09x

Cash Ratio:1.15x

Leverage Analysis (3)

Debt To Equity Ttm:0.35x

Debt-to-Equity Ratio:0.35x

Debt To Ebitda:-999.00x

Coverage Ratios (1)

Times Interest Earned:-999.00

Capital Structure (4)

Working Capital:12,334,295.00

Cash And Cash Equivalents:8,287,704.00

Long Term Debt:$2.66M

Net Debt:-$5.20M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $45.11M

Linear Growth: 15.8%

📊 Click to view full KRMD Revenue analysis & methodology →

Cost Of Revenue Ttm:$16.95M

Profitability Breakdown (2)

Gross profit TTM: $28.16M

Linear Growth: 19.9%

📊 Click to view full KRMD Gross Profit analysis & methodology →

-$1.65M

Bottom Line Performance (3)

-$1.82M

Income Before Tax:-$1.81M

Ebitda Ttm:-861,496.00

Operating Expenses (5)

Operating Expenses:29,812,286.00

R And D Expense:4,463,619.00

Sga Expense:24,557,449.00

Income Tax Expense:$1.50M

Interest Expense:0.00

Expense Ratios (3)

R And D To Revenue Percentage:37.1%

Sga To Revenue Percentage:203.9%

Ebitda Margin:-1.9%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$27.96M

Current Assets:$19.51M

Ppe Net:3,929,718.00

Goodwill:0.00

Intangible Assets:$1.66M

Liability Structure (4)

Total Liabilities:9,910,496.00

Current Liabilities:7,179,822.00

Long Term Debt:$2.66M

Short Term Debt:$430.17K

Equity & Capital (3)

Equity:$18.05M

Retained Earnings:-$32.57M

Common Stock:75,000,000.00

Working Capital Items (3)

Accounts Receivable:5,027,723.00

Inventory:4,511,126.00

Accounts Payable:2,912,589.00

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:681,510.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $714.54K

Linear Growth: -50.0%

Free cash flow TTM: $179.29K

Linear Growth: -50.0%

📊 Click to view full KRMD Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$89.89K

Capital Expenditures Ttm:535,242.00

Financing Activities (3)

Financing Cash Flow:-$29.22K

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:791,218.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (2)

-$0.10

Earnings Per Share Ttm:-$0.04

Revenue & Cash Per Share (3)

Sales Per Share Ttm:0.98

Operating Cash Flow Per Share:$0.01

Fcf Per Share Ttm:0.00

Book Value & Capital (2)

Book Value Per Share:$0.39

Cash Per Share:0.18

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.61x

Working Capital Turnover Ttm:3.66x

Receivables Management (2)

Receivables Turnover Ttm:8.97x

Days Sales Outstanding Ttm:40.68

Inventory Management (2)

Inventory Turnover Ttm:3.76x

Days Inventory Outstanding Ttm:97.15

Payables & Cash Cycle (2)

Days Payable Outstanding:62.73

Cash Conversion Cycle:75.11

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:50.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $407.90K

Linear Growth: -50.0%

📊 Click to view full KRMD Owner Earnings analysis & methodology →

Owner Earnings Per Share:$0.01

Owner Earnings Yield:$0.27

Growth Assessment (1)

Owner Earnings Growth Rate:-$50.00

Damodaran Growth Analysis (2)

Reinvestment Rate:-7.6%

Fundamental Growth Rate (g):1.0%

Intrinsic Value Models (1)

Intrinsic Value:

$1.82M

📊 Click to view full KRMD DCF valuation →

Margin of Safety (1)

Margin Of Safety:

-100.0%

📊 Click to view full KRMD valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:

-67.0%

📊 Click to view full KRMD expected return analysis →

Forward Expected Return (Yield + Growth):

1.2%

📊 Click to view full KRMD expected return analysis →

Investment Assessment (1)

Buffett Assessment:Overvalued

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (1)

Revenue Growth Rate (Linear):15.8%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-50.0%

Operating Cash Flow Growth Rate (Linear):-50.0%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):19.9%

Book Value Growth Rate (Linear):-18.0%

Owner Earnings Growth Rate:-$50.00

C. Company Profile & Context

Corporate Information (6)

Symbol:KRMD

Company Name:KORU MEDICAL SYSTEMS, INC.

Sector:Healthcare

Industry:Medical Devices

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:46.08M

Shares Outstanding Basic:46.08M

Shares Outstanding Diluted:49.51M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-21 17:38:56 UTC

Data Timestamp:2026-08-19T00:14:04.973535