EDAP TMS (EDAP) AI Stock Analysis

• Market Cap: $55.34M
• Dividend Yield: N/A
• Average Volume (3M): 66.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 310
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Devices
• EPS (TTM): -0.22
• Shares Outstanding: 37,103,780
• 10 Day Avg. Volume: 84,055
• 30 Day Avg. Volume: 66,330
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 2.20
• Enterprise Value/Ebitda: -3.33
• 1Y Price Target: $1.50
• Price Target Upside: 11.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: $1.50 ▲(11.11% Upside)

EDAP TMS's overall stock score is primarily impacted by its financial performance and valuation challenges. Despite strategic achievements in HIFU and regulatory milestones, the company's profitability issues and negative cash flow generation weigh heavily on its score. Technical indicators suggest a bearish trend, further contributing to a cautious outlook.

Positive Factors

Market Expansion

CE Mark certification expected to tap into large market.

Technology and Innovation

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

Competitive and Regulatory Risks

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

Rating Downgrade

Analyst lowers the rating from Buy to Hold, seeing downside to consensus estimates.

EDAP TMS Business Overview & Revenue Model

Company Description

EDAP TMS S.A., together with its subsidiaries, develops, produces, markets, distributes, and maintains a portfolio of minimally invasive medical devices for the treatment of urological diseases in Asia, France, the United States, and internationally. It operates in three segments: High Intensity Focused Ultrasound (HIFU), Extracorporeal ShockWave Lithotripsy (ESWL), and Distribution Services (DIST). The HIFU segment develops, manufactures, and markets medical devices based on HIFU technology for the minimally invasive treatment of urological and other clinical indications. This segment also offers Ablatherm, an ultrasound guided robotic HIFU device for the treatment of organ-confined prostate cancer; Ablatherm Fusion that incorporates the company's proprietary fusion software, which merges MRI and ultrasound images; and the Focal One, a HIFU robotic device dedicated to the focal therapy of prostate cancer, as well as disposables, and leasing and treatment related services; and maintenance services. The ESWL division manufactures, markets, and services lithotripter for the treatment of urinary tract stones by means of ESWL technology; and offers Sonolith i-move, an extracorporeal shockwave lithotripter to small and mid-size hospitals, as well as sells disposable parts for lithotripters and electrodes. The Distribution division markets, distributes, and services lasers, micro-ultrasound systems, and other medical products from third parties, as well as leases devices; sells disposables and spare parts; and offers maintenance services. The company markets and sells its products through its direct marketing, sales organization, and service platform, as well as through third-party distributors and agents. Its customers include hospitals, urology clinics, and research institutions. The company was incorporated in 1979 and is headquartered in Lyon, France.

How the Company Makes Money

EDAP TMS generates revenue through multiple channels, primarily by selling its proprietary HIFU devices and related consumables to hospitals and clinics. The company also earns income from providing services associated with the operation of these devices, including training and support for medical professionals. Additionally, EDAP has established partnerships with various healthcare institutions to facilitate the adoption of its technology, which can lead to long-term revenue through contracts and service agreements. The company may also benefit from reimbursement policies in healthcare systems that cover the use of its technologies, further contributing to its financial performance.

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: 1.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.35 is below the 20-day moving average (MA) of 1.36, below the 50-day MA of 1.51, and below the 200-day MA of 2.03, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 50.42 is Neutral, 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
ICAD	60 Neutral		―		―	-4.15%	3.49%
XTNT	58 Neutral	$80.80M	―	-9.80%	―	15.16%	-39.18%
HYPR	57 Neutral	$98.86M	―	-77.26%	―	-9.59%	8.78%
Sector *	54 Neutral	€4.17B	12.59	-36.14%	2.46%	15.95%	-24.06%
ECOR	51 Neutral	$37.69M	―	-210.58%	―	30.16%	22.51%
OWLT	46 Neutral	$124.60M	―	60.56%	―	36.81%	-74.26%
EDAP	45 Neutral	$55.34M	―	-51.63%	―	―	―