EDAP TMS (EDAP) AI Stock Analysis

• Market Cap: $53.47M
• Dividend Yield: N/A
• Average Volume (3M): 43.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 310
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Devices
• EPS (TTM): -0.22
• Shares Outstanding: 37,103,780
• 10 Day Avg. Volume: 57,062
• 30 Day Avg. Volume: 43,041
• PEG Ratio: 0.18
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.75
• Price Target Upside: 441.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 43 Neutral
• Price Target: $1.50 ▲(4.90%Upside)

EDAP's stock score is primarily influenced by financial challenges, including profitability and cash flow issues, and bearish technical indicators. Positive strategic developments in the earnings call provide some optimism, but financial health and valuation remain concerns.

Positive Factors

Market Expansion

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.

Technology Platform

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.

Competitive Risks

There is a potential need for capital, risk from intensifying prostate cancer tissue ablation competition, and risk from EU tariffs.

Procedure Growth

The annual procedure growth was less-than-optimal with 4% YoY compared to 1Q24.

EDAP TMS Business Overview & Revenue Model

Company Description

EDAP 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 Money

EDAP 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 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.11M	60.42M	55.11M	44.07M	41.66M
Gross Profit	26.56M	24.41M	24.19M	18.42M	18.38M
EBITDA	-15.93M	-18.39M	-323.00K	309.00K	2.37M
Net Income	-19.02M	-21.18M	-2.93M	700.00K	-1.70M
Balance Sheet
Total Assets	86.06M	91.55M	101.12M	77.23M	55.19M
Cash, Cash Equivalents and Short-Term Investments	29.84M	43.47M	63.14M	47.18M	24.70M
Total Debt	13.92M	8.42M	6.66M	8.16M	5.43M
Total Liabilities	45.17M	34.63M	29.49M	27.17M	28.95M
Stockholders Equity	40.90M	56.92M	71.63M	50.05M	26.25M
Cash Flow
Free Cash Flow	-17.68M	-18.63M	-5.21M	2.89M	107.00K
Operating Cash Flow	-13.58M	-14.68M	-3.02M	4.45M	1.98M
Investing Cash Flow	-4.12M	-4.34M	-2.38M	-1.64M	-2.01M
Financing Cash Flow	4.63M	-911.00K	21.74M	20.27M	3.20M

EDAP TMS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.43 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.70, and below the 200-day MA of 2.17, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 32.60 is Neutral, neither overbought nor oversold. The STOCH value of 14.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EDAP.

EDAP TMS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ECOR	61 Neutral	$55.81M	―	-276.15%	―	41.54%	42.59%
OWLT	57 Neutral	$137.65M	―	60.56%	―	45.51%	49.64%
XTNT	54 Neutral	$88.90M	―	-26.20%	―	20.81%	-498.66%
HYPR	53 Neutral	$89.52M	―	-67.86%	―	0.34%	6.20%
Sector *	52 Neutral	$7.61B	0.10	-63.03%	2.08%	16.34%	0.32%
EDAP	43 Neutral	$53.47M	―	-51.63%	―	―	―