Utah Medical Products, Inc. (UTMD): BCG Matrix [Dec-2025 Updated]

You're looking at Utah Medical Products, Inc.'s portfolio as of late 2025, and honestly, the picture is one of a highly profitable core being pulled in a few different directions. The firm is milking its established Cash Cow, the Filshie Clip System, which helps deliver a 31.0% Net Income Margin in the first half of the year, all while pouring potential fuel on Stars in high-growth Women's Healthcare (9.5% CAGR). But you can't ignore the drag: the PendoTECH OEM business is clearly a Dog, falling off a cliff by 51% in 1H 2025, and the international push is a Question Mark after a 15.5% sales drop. Let's break down exactly where Utah Medical Products, Inc. needs to invest, hold, or divest right now.

Background of Utah Medical Products, Inc. (UTMD)

You're looking at Utah Medical Products, Inc. (UTMD), a company that's been around since its founding in 1978, headquartered in Midvale, Utah. Honestly, their core business is developing, making, and selling medical devices that are mostly disposable, focusing heavily on healthcare for women and babies. They serve a global customer base in over one hundred countries, with products used in critical care areas, labor and delivery departments, outpatient clinics, and physician's offices.

The product portfolio is quite specific, covering areas like Gynecology, Urology, Electrosurgery, and Neonatal critical care. For instance, they make things like Electrosurgical pens, Tenacula, and blood bag spikes. Also, they are known for fetal monitoring accessories and vacuum-assisted delivery systems for labor and delivery, plus the DISPOSA-HOOD infant respiratory hoods. On the monitoring side, they offer the DELTRAN PLUS blood pressure monitoring systems.

Now, let's look at how things stood as of the middle of 2025. For the first half of 2025, consolidated net sales came in at $19.663 million, which was a 9.6% drop compared to the first half of 2024. The Q2 2025 results showed net sales of $9.953 million, down 4.3% year-over-year. This revenue pressure was largely driven by a continued decline in sales to PendoTECH, which was a major OEM customer; this single customer accounted for 86% of the sales decline in the first half of the year.

Despite the top-line pressure, the company's financial structure remains a key strength. As of June 30, 2025, Utah Medical Products, Inc. reported having no debt and a cash and investments balance of $82.2 million. Management noted that operating income margins stayed robust, partly because U.S. litigation costs were lower compared to 2024. For the first half of 2025, net income was $6.089 million, a decrease of 17.8%.

Looking at the third quarter, which ended September 30, 2025, the revenue was reported at $9.81 million, and the trailing 12-month revenue stood at $38.6M. As of November 10, 2025, the stock price was $57.28, giving the company a market capitalization of $184M based on about 3.2M shares outstanding. The trailing EPS was $3.54, with a Price-to-Earnings ratio of 15.82. The company definitely kept up its commitment to shareholders, continuing its share repurchase program and paying dividends throughout the year.

Utah Medical Products, Inc. (UTMD) - BCG Matrix: Stars

Stars in the Boston Consulting Group Matrix represent business units or products with a high market share in a high-growth market. For Utah Medical Products, Inc. (UTMD), these are the areas where current success meets future potential, though they demand significant investment to maintain leadership.

The company's focus appears to be on driving growth through proprietary devices in markets showing strong expansion. Specifically, non-Filshie devices are targeting the Neonatal Critical Care segment, which is projected to have a Compound Annual Growth Rate (CAGR) of 7.20% through 2030, with the global market size forecast to reach USD 7.23 billion by that year. Furthermore, proprietary devices are positioned within the Women's Healthcare Technologies market, which you are tracking with a projected high growth rate of 9.5% CAGR.

Traction in the core domestic market supports the Star classification. Domestic direct sales, excluding the OEM business with PendoTECH, showed a growth of 9% in the first quarter of 2025 (1Q 2025). Digging deeper, direct sales specifically to medical facilities grew even stronger at 11.6% year-over-year in 1Q 2025, suggesting strong demand for UTMD's core offerings in the U.S..

However, maintaining Star status requires continuous investment, and here is where you see a potential near-term risk. For these high-growth segments to continue leading, R&D investment must keep pace. You noted that R&D spending was low at only 1.6% of sales in 1Q 2025. This low investment level, relative to the high-growth markets these products operate in, is a key factor to watch regarding future market share defense.

The overall financial health in 1Q 2025 shows the company is cash-rich, which supports investment, but margins are under pressure. Cash reserves stood at $83.3 million as of March 31, 2025. Still, the Gross Profit Margin compressed to 57.0% from 59.7% year-over-year, and the Net Income Margin fell to 31.3% from 34.9%. Earnings Per Share (EPS) for 1Q 2025 was $0.92, a 16.0% decline.

Here's a quick look at the performance metrics for the core domestic business driving the Star narrative:

You need to monitor how Utah Medical Products, Inc. allocates capital to these Star segments. If market share is kept, these units are the most likely to transition into Cash Cows when their high-growth markets eventually slow down. The key tenet here is that a BCG strategy for growth mandates investment in Stars, so you'll want to see that 1.6% figure increase to secure future dominance.

• Direct non-Filshie devices in Neonatal Critical Care.
• Proprietary devices in Women's Healthcare Technologies.
• Domestic direct sales growth of 9% in 1Q 2025.
• Risk factor: R&D spending at only 1.6% of sales in 1Q 2025.

Finance: draft 13-week cash view by Friday.

Utah Medical Products, Inc. (UTMD) - BCG Matrix: Cash Cows

You're looking at the core engine of Utah Medical Products, Inc. (UTMD), the products that fund everything else. Cash Cows, in the Boston Consulting Group framework, are your high-market-share leaders in slow-growth markets. They don't need heavy investment to maintain their position, so they pump out serious cash flow for the firm.

The Filshie Clip System for female sterilization is a prime example here. It's a proprietary, established product that commands a high niche market share. This product line operates within the broader Surgical Clips market, which is characterized by stable, moderate growth-specifically, a projected Compound Annual Growth Rate (CAGR) of 5.28% through 2030. This low growth means you don't need massive promotional spending to defend share; you just need to maintain operational excellence.

The financial results for the first half of 2025 definitely reflect this mature, high-margin status. You can see the profitability in the margins and the resulting cash build-up. Honestly, this is what you want to see from a mature business unit.

This operational efficiency translates directly to the balance sheet. As of June 30, 2025, Utah Medical Products, Inc. held a massive cash and investments balance totaling $82.2 million. This liquidity is generated from these stable, profitable operations. Furthermore, the company maintains a disciplined capital structure, reporting a Debt to Equity ratio of 0 as of December 2024, meaning the business has no debt. This debt-free status is key; it means the cash flow generated by these Cash Cows isn't being consumed by servicing corporate debt.

Because the core business segments operate in a market with a relatively low growth projection, the strategy here is to 'milk' the gains passively. You use the cash flow to support the rest of the portfolio, cover administrative costs, and return capital to shareholders. The company executed on this by paying $2.018 million in dividends and repurchasing $8.727 million in stock during 1H 2025, all while still increasing its non-cash working capital by $0.3 million.

Here's a quick look at how the cash was deployed in the first half of 2025:

• Cash used for share repurchases: $8.727 million
• Cash used for shareholder dividends: $2.0 million (implied from total use of $8.727M + $2.0M in dividends + $0.3M working capital increase + $0.2M CapEx to result in the $797K decrease in cash)
• Ending Cash and Investments: $82.2 million
• Starting Cash and Investments (Dec 31, 2024): $82.976 million

The ability to fund significant capital allocation activities-dividends and buybacks-while maintaining a war chest of $82.2 million and carrying zero debt is the definitive sign of a strong Cash Cow position for Utah Medical Products, Inc. Finance: draft the Q3 2025 cash flow projection by next Tuesday.

Utah Medical Products, Inc. (UTMD) - BCG Matrix: Dogs

Dogs, are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

For Utah Medical Products, Inc. (UTMD), the OEM sales to PendoTECH clearly fit this profile, representing a segment that is being phased out and acts as a drag on overall revenue performance. This relationship is characterized by a sharp, ongoing reduction in volume.

The financial impact from this specific OEM relationship is stark when looking at the first half results. Sales to PendoTECH plummeted by 87.1% in the first half of 2025 compared to the first half of 2024. Specifically, WW sales to PendoTECH were only $265 thousand in 1H 2025, down from $2,056 thousand in 1H 2024. This segment decline accounted for 86% of the total consolidated revenue decline for the first half of 2025. Management has projected a further decline of approximately $2 million for the full year 2025 from this customer.

Also falling into the Dog category are certain OUS (Outside U.S.) distributor sales, which show low market share in those specific international areas. These sales experienced a 15.5% decrease in 1H 2025 compared to 1H 2024. The remaining OUS sales to distributors in other countries were $973 thousand lower in 1H 2025 than in 1H 2024.

These segments are low-growth and low-share, and management expects the PendoTECH decline to nearly eliminate the client relationship. You can see the key negative metrics for these units here:

Dogs should be avoided and minimized. Expensive turn-around plans usually do not help. The current trend for Utah Medical Products, Inc. shows management is already acting on this by seeing the PendoTECH relationship wind down naturally.

The performance characteristics of these units include:

• OEM sales to PendoTECH are being phased out.
• OUS direct to end-user sales were 14.7% lower overall in 1H 2025.
• Consolidated total 1H 2025 revenues were $2,077 thousand lower than in 1H 2024.
• The 1H 2025 Gross Profit Margin was 56.6%, down from 59.9% in 1H 2024.

Utah Medical Products, Inc. (UTMD) - BCG Matrix: Question Marks

These business units are characterized by operating in high-growth markets but currently possess a low market share, meaning they consume significant cash while generating limited immediate returns. The strategy here is to aggressively invest to capture market share quickly or divest if potential is not realized.

The International Sales (OUS) segment exemplifies this quadrant, showing a decline despite generally growing global markets. Total OUS sales in the first half of 2025 (1H 2025) were 15.5% lower, totaling $8,215 thousand, down from $9,718 thousand in 1H 2024. This performance suggests that even in expanding international territories, UTMD's current market penetration or product adoption is lagging.

A key area requiring heavy investment is new product development in the Wearable Pregnancy Devices space. This market is high-growth, with the global industry projected to rise at a Compound Annual Growth Rate (CAGR) of 16.6% from 2026 to 2035. UTMD is entering this space with a low initial share, necessitating substantial marketing and development spend to establish a foothold against established players.

Products within the Infusion Devices market also fit the Question Mark profile. This market is growing, with the Advanced Infusion Systems segment showing a CAGR of 6.4% from 2025 to 2035. Here, Utah Medical Products, Inc. competes against much larger entities such as Medtronic and Baxter, making the required investment to gain meaningful share a significant cash drain.

The entire OEM domestic sales category is also showing signs of being a Question Mark, as it dropped to only 12% of total domestic sales in 1H 2025, down from 23% in 1H 2024. This segment requires a swift strategic pivot or the rapid onboarding of a new, substantial customer base to prevent it from becoming a Dog.

Here's a quick look at the relevant financial and market metrics for these units:

The imperative for these Question Marks is clear, demanding immediate resource allocation decisions:

• Invest heavily to rapidly increase market share in Wearable Pregnancy Devices.
• Develop a new strategy or customer base for the declining OEM domestic sales.
• Determine if the Infusion Devices segment warrants significant investment to challenge incumbents.
• These units are currently losing the company money due to high growth investment needs and low current returns.
• Failure to quickly gain share in these growing markets means they risk becoming Dogs.

Finance: draft scenario-based investment requirement analysis for Wearable Pregnancy Devices by next Tuesday.