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Edap Tms S.A. (EDAP)
NASDAQ:EDAP

EDAP TMS (EDAP) AI Stock Analysis

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EDAP TMS

(NASDAQ:EDAP)

Rating:41Neutral
Price Target:
$1.50
▼(-5.06%Downside)
EDAP TMS's overall stock score is primarily impacted by its financial performance and valuation. The company faces significant challenges with profitability and cash flow, while technical indicators suggest bearish momentum. Despite strategic achievements, the financial setbacks weigh heavily on the stock's attractiveness.
Positive Factors
Regulatory Approvals
Taking advantage of the recent receipt of CE Mark certification, the company has initiated a controlled market launch of Focal One for the treatment of deep infiltrating endometriosis in a small group of treatment centers in Europe to generate some clinical data.
Technological Advancements
The company launched Focal Once I Robotic HIFU system, a next-generation platform that has compatibility with different imaging systems, such as ExactVu, PSMA PET Scans as well capability to integrate different datasets like DynaCAD.
Negative Factors
Analyst Rating
Analyst lowers the rating from Buy to Hold, seeing downside to consensus estimates.
Competition and Market Risks
There is a potential need for capital, risk from intensifying prostate cancer tissue ablation competition, and risk from EU tariffs.
Sales and Distribution Strategy
EDAP plans to stop selling litho systems and reduce investment in its distribution business, expecting sales declines in these areas.

EDAP TMS (EDAP) vs. SPDR S&P 500 ETF (SPY)

EDAP TMS Business Overview & Revenue Model

Company DescriptionEDAP TMS S.A. is a medical technology company headquartered in Lyon, France, specializing in developing, manufacturing, and marketing minimally invasive medical devices. The company operates primarily in the urology sector, offering innovative products and solutions for the treatment of urological diseases. EDAP's core offerings include high-intensity focused ultrasound (HIFU) devices for prostate cancer treatment, as well as lithotripters used for treating urinary tract stones. The company is committed to advancing therapeutic solutions that improve patient outcomes and enhance the quality of healthcare services.
How the Company Makes MoneyEDAP TMS generates revenue through the sale and lease of its medical devices, particularly its HIFU and lithotripsy systems. The company's revenue model includes direct sales to hospitals, clinics, and healthcare providers, as well as leasing agreements that provide recurring income. Additionally, EDAP earns money from providing maintenance services, training, and support for its devices, ensuring customer satisfaction and device efficacy. Strategic partnerships with healthcare institutions and distributors expand the company's market reach and contribute to its financial performance. EDAP's focus on innovation and regulatory approvals also plays a crucial role in sustaining its revenue streams by continuously introducing advanced medical technologies to the market.

EDAP TMS Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q1-2025)
|
% Change Since: -26.85%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as record system placements, regulatory approvals, and positive clinical trial results. However, these were tempered by financial challenges, including a decline in overall revenue and increased net losses. Additionally, there were operational challenges related to insurance approvals. The sentiment is mixed with promising strategic developments yet notable financial setbacks.
Q1-2025 Updates
Positive Updates
Record Number of Focal One Placements
Nine Focal One systems were placed in Q1 2025, a record number for any prior first quarter period.
CE Mark Approval for New Indication
Focal One received CE Mark approval for treating posterior deep infiltrating endometriosis.
Launch of Focal One i Robotic HIFU System
The new Focal One i System was launched at the 2025 AUA Meeting, featuring AI and remote procedure capabilities.
Positive Clinical Trial Results
The FARP Randomized Controlled Trial showed that focal ablation is non-inferior to radical prostatectomy.
World's First Remote Transatlantic Procedure
A remote procedure was conducted between Cleveland Clinic Ohio and Cleveland Clinic Abu Dhabi using Focal One.
Negative Updates
Overall Revenue Decline
Total worldwide revenue was €13.6 million, a decrease of 9.1% compared to the same period in 2024.
Increased Operating Loss
Operating loss for Q1 2025 was €6 million compared to €4.8 million in Q1 2024.
Net Loss Increase
Net loss for Q1 2025 was €7.1 million, compared to a net loss of €4.5 million in the year-ago period.
Challenges with Medicare Advantage Plans
Longer and more challenging review and procedure approvals for patients enrolled in Medicare Advantage plans.
Cash and Cash Equivalents Decrease
Total cash and cash equivalents at the end of Q1 were €22.8 million, down from €29.8 million at the end of Q4 2024.
Company Guidance
In the first quarter of 2025, EDAP TMS reported significant achievements in their HIFU business, with a record placement of nine Focal One systems, contributing to a 6.8% increase in HIFU revenue to €6.2 million compared to the first quarter of 2024. However, total worldwide revenue declined by 9.1% to €13.6 million due to strategic shifts away from non-core segments. Operating expenses rose to €11.7 million, leading to a net loss of €7.1 million, or €0.19 per share. The company maintained its 2025 revenue guidance, expecting HIFU revenue growth between 16% and 25%, while non-core businesses are projected to decline by 20% to 25%. Notable developments included the launch of the new Focal One i Robotic HIFU System and the landmark remote transatlantic Focal One procedure, emphasizing EDAP’s commitment to expanding their technological leadership and market presence in focal therapy.

EDAP TMS Financial Statement Overview

Summary
EDAP TMS shows potential in revenue growth but struggles with profitability and cash flow generation. The balance sheet is relatively stable, but increasing leverage and negative cash flow are concerns.
Income Statement
45
Neutral
EDAP TMS has shown consistent revenue growth over the years, with a 6% increase from 2023 to 2024. However, the company has struggled with profitability, evidenced by consistently negative net income and EBIT margins. The gross profit margin has been relatively stable, but the company needs to control its operating expenses to move toward profitability.
Balance Sheet
50
Neutral
The balance sheet shows a moderate level of financial health with an equity ratio of 47.5% in 2024, indicative of a balanced capital structure. However, the debt-to-equity ratio has slightly increased over the years, suggesting a rising leverage risk, which could be problematic if profitability doesn't improve.
Cash Flow
40
Negative
The cash flow statement highlights challenges in generating positive free cash flow, with negative figures in recent years. Operating cash flow to net income ratio is negative, reflecting operational inefficiencies. The company needs to improve cash flow generation to support its operations and future growth.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue64.11M60.42M55.11M44.07M41.66M
Gross Profit26.56M24.41M24.19M18.42M18.38M
EBITDA-15.93M-18.39M-323.00K309.00K2.37M
Net Income-19.02M-21.18M-2.93M700.00K-1.70M
Balance Sheet
Total Assets86.06M91.55M101.12M77.23M55.19M
Cash, Cash Equivalents and Short-Term Investments29.84M43.47M63.14M47.18M24.70M
Total Debt13.92M8.42M6.66M8.16M5.43M
Total Liabilities45.17M34.63M29.49M27.17M28.95M
Stockholders Equity40.90M56.92M71.63M50.05M26.25M
Cash Flow
Free Cash Flow-17.68M-18.63M-5.21M2.89M107.00K
Operating Cash Flow-13.58M-14.68M-3.02M4.45M1.98M
Investing Cash Flow-4.12M-4.34M-2.38M-1.64M-2.01M
Financing Cash Flow4.63M-911.00K21.74M20.27M3.20M

EDAP TMS Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.58
Price Trends
50DMA
1.85
Negative
100DMA
1.99
Negative
200DMA
2.24
Negative
Market Momentum
MACD
-0.07
Positive
RSI
33.48
Neutral
STOCH
13.45
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDAP, the sentiment is Negative. The current price of 1.58 is below the 20-day moving average (MA) of 1.68, below the 50-day MA of 1.85, and below the 200-day MA of 2.24, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 33.48 is Neutral, neither overbought nor oversold. The STOCH value of 13.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDAP.

EDAP TMS Risk Analysis

EDAP TMS disclosed 37 risk factors in its most recent earnings report. EDAP TMS reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our by-laws and French corporate law contain provisions that may delay or discourage a takeover attempt. Q4, 2023
2.
The rights of shareholders in companies subject to French corporate law differ in material respects from the rights of shareholders of corporations incorporated in the United States. Q4, 2023
3.
If securities or industry analysts do not publish research, or publish inaccurate or unfavorable research, about our business, our ADS price and trading volume could decline. Q4, 2023

EDAP TMS Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$138.81M60.56%45.51%49.64%
61
Neutral
$52.69M-276.15%41.54%42.59%
60
Neutral
$102.19M-16.53%-4.15%3.49%
57
Neutral
$89.17M-26.20%20.81%-498.66%
52
Neutral
$60.64M-67.86%0.34%6.20%
52
Neutral
$7.49B0.22-61.87%2.28%16.62%1.08%
41
Neutral
$57.36M-51.63%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EDAP
EDAP TMS
1.58
-3.36
-68.02%
ICAD
iCAD
3.88
2.58
198.46%
XTNT
Xtant Medical Holdings
0.69
-0.02
-2.82%
ECOR
Electrocore
7.55
1.15
17.97%
OWLT
Owlet
8.85
4.73
114.81%
HYPR
Hyperfine
0.78
-0.27
-25.71%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025