Deep Value: cash covers more than 100% of the stock price

This company holds roughly $147M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Outset Medical

Medical - Devices · Healthcare

Price

$4.21

-0.09 (-2.09%)

Market Cap

$78.0M

Exchange

NASDAQ

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Weak

Stability

Good

Valuation

Data not available

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Share count rising — dilution

+400.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 3.0M (2021) → 15.2M (2025)

Winston Score History

The full picture

Outset Medical makes a dialysis machine called the Tablo System. Dialysis is a treatment that cleans the blood of people whose kidneys have stopped working properly. The Tablo machine is designed to be simpler to use than traditional dialysis equipment, and it can be used in hospitals, clinics, and even patients' homes.

The company sells the Tablo machine to healthcare facilities and earns additional revenue from disposable supplies and service contracts used with each treatment. Outset operates primarily in the United States and is a small company with a market cap around $100 million. Its main competitive advantage is the Tablo's all-in-one design, which requires less training and infrastructure than older dialysis systems. However, the company is losing significant money — its operating margin is deeply negative — and the key risk is whether it can grow revenue fast enough to reach profitability before running low on cash.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+0.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+6.7% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$21M/ year

↓ Declining (-45% vs prior year)

17.8% of revenue

In line with sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

16.4%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Runway

~4 years

$147M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

$147M cash & investments at current burn rate

Growth context

Outset Medical is growing revenue at 1% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

42.0%

Healthy — 42.0% gross margin

Profit after running costs

Operating Margin

-49.6%

Losing money on operations — -49.6%

Return on the money invested

ROCE

-65.7%

Weak — -65.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-1.3%

Shrinking sales (-1.3% YoY)

Profit growth

EPS YoY

N/A

—

Data not available

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

—

Data not available

Spare cash per sale

FCF Margin

-33.0%

Burning cash (-33.0%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.04

Conservative — low debt load (0.04)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

—

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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