tiprankstipranks
Trending News
More News >
MiMedx Group (MDXG)
NASDAQ:MDXG
US Market

MiMedx Group (MDXG) AI Stock Analysis

Compare
464 Followers

Top Page

MD

MiMedx Group

(NASDAQ:MDXG)

Rating:76Outperform
Price Target:
$8.50
▲(25.55%Upside)
MiMedx Group's overall stock score reflects its strong financial fundamentals, including revenue growth and improved profitability. While technical analysis shows mixed signals, the company's strategic initiatives and positive earnings call guidance support a growth outlook. Valuation appears fair, but further upside may require additional growth drivers. Challenges in specific segments, like wound care and Medicare reimbursement, present risks but are being addressed strategically.
Positive Factors
Product Sales
MDXG put up another quarter of strong product sales, with $93mn of revenue versus $89.4mn Street, or 7% growth versus 3% expectation.
Strategic Initiatives
Management remains optimistic about current strategic initiatives, with the recent launch of HELIOGEN expected to contribute meaningfully.
Negative Factors
Reimbursement Uncertainty
Continuing reimbursement uncertainty disrupted the business in the physician office setting.

MiMedx Group (MDXG) vs. SPDR S&P 500 ETF (SPY)

MiMedx Group Business Overview & Revenue Model

Company DescriptionMiMedx Group, Inc. develops and distributes placental tissue allografts for various sectors of healthcare. It processes the human placental tissues utilizing its patented and proprietary PURION process to produce allografts that retains the tissue's inherent biological properties and regulatory proteins. The company's patented and proprietary processing method employs aseptic processing techniques in addition to terminal sterilization. Its products include EpiFix, a semi-permeable protective barrier membrane product used for the treatment of chronic wounds, including diabetic foot ulcers, venous leg ulcers, and pressure ulcers; AmnioFix, a semi-permeable protective barrier allograft, which comprises dehydrated human amnion/chorion membrane for use in surgical recovery applications; EpiCord and AmnioCord are dehydrated human umbilical cord allografts that are used to provide a protective environment for the healing process, as well as used in the advanced wound care and surgical recovery applications; and AMNIOBURN a semi-permeable protective barrier allograft used in the treatment of partial-thickness and full-thickness burns, as well as lead product includes mdHACM, a micronized form of AMNIOFIX, supplied in powder form. The company's products have applications primarily in the areas of wound care, burn, surgical, and non-operative sports medicine sectors of healthcare. It also sells allografts for dental applications on an original equipment manufacturer basis. The company sells its products through direct sales force and independent sales agents, as well as through independent distributors primarily in the United States. MiMedx Group, Inc. is headquartered in Marietta, Georgia.
How the Company Makes MoneyMiMedx Group generates revenue primarily through the sale of its regenerative biologics products to healthcare providers, hospitals, and clinics. The company markets its products to physicians and healthcare facilities that utilize them in various medical applications, such as wound care and orthopedic procedures. Key revenue streams include direct sales, distributor agreements, and partnerships with healthcare organizations. Additionally, MiMedx invests in research and development to expand its product offerings and enhance its technology, which contributes to its earnings by meeting evolving market demands and maintaining a competitive edge in the regenerative medicine sector.

MiMedx Group Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: -1.60%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
MIMEDX demonstrated a strong start to the fiscal year with growth in the surgical segment and improved cash position. However, challenges in the wound care segment and delays in Medicare reimbursement reforms present ongoing hurdles.
Q1-2025 Updates
Positive Updates
Strong Start to Fiscal Year 2025
MIMEDX reported a 4% year-over-year increase in net sales for Q1 2025, despite a challenging comparison to Q1 2024, which had an 18% growth.
Surgical Business Growth
The surgical segment grew by 16% with contributions across the portfolio, including an uptick in HELIOGEN sales as adoption gains traction.
Cash Position and Profitability
The company ended the quarter with $106 million in cash, a $2 million increase, and reported an adjusted EBITDA of $17 million, representing 20% of net sales.
AMNIOEFFECT and HELIOGEN Performance
AMNIOEFFECT grew by 22% in Q1, and HELIOGEN, a new xenograft, showed promising sequential growth.
Negative Updates
Wound Care Segment Challenges
The wound care sales were flat due to disruption in the Medicare reimbursement system and the competitive environment, leading to a 2% decline in wound sales.
Medicare Reimbursement Delays
Continued delays in Medicare reimbursement reforms have caused disruptions, with the latest delay pushing reforms to January 1, 2026, impacting the private office setting.
Gross Margin Pressure
The GAAP gross margin decreased to 81% from 85% in the prior year, and the adjusted gross margin was slightly down, expected to be around 82% to 83% for the year.
Company Guidance
During the MIMEDX First Quarter 2025 operating and financial results conference call, CEO Joe Capper highlighted a 4% year-over-year increase in net sales, reaching $88 million, despite challenging comparisons from the previous year. The company reported an adjusted gross profit margin of 84% and an adjusted EBITDA of $17 million, representing 20% of net sales. MIMEDX ended the quarter with $106 million in cash, marking a $2 million increase during the quarter. The surgical business experienced a 16% growth, attributed to the successful performance of products like HELIOGEN and AMNIOEFFECT, while the wound care business faced challenges due to Medicare reimbursement disruptions. Despite these challenges, the company reiterated its guidance for high single-digit revenue growth for the full year, with a positive outlook for long-term growth post-reform in the Medicare reimbursement landscape.

MiMedx Group Financial Statement Overview

Summary
MiMedx Group has shown strong growth in revenue and profitability, with a positive net profit margin and robust cash flow. The solid balance sheet with low leverage supports financial stability, though opportunities to leverage cash reserves more effectively could boost growth.
Income Statement
82
Very Positive
MiMedx Group has shown strong growth in revenue over the observed periods, with a notable increase from $267.8M in 2022 to $352.4M in TTM (Trailing-Twelve-Months) 2025. Gross profit margin is robust at 81.9% for TTM, indicating efficient cost management. The net profit margin has turned positive, reaching 11.4% in TTM 2025 from negative figures in previous years, signaling improved profitability. However, the decline in EBIT from 2024 to TTM 2025 suggests some operational cost challenges.
Balance Sheet
76
Positive
The company's balance sheet reflects a solid equity position with an equity ratio of 74.98% in TTM 2025, indicating a strong capital structure. The debt-to-equity ratio is very low at 0.01, showcasing minimal leverage, which reduces financial risk. Return on equity is positive at 19.81%, reflecting efficient use of equity to generate profits. Nonetheless, the high level of cash reserves relative to debt suggests missed opportunities for investment or growth.
Cash Flow
88
Very Positive
MiMedx Group demonstrates strong cash flow generation with free cash flow growing significantly, highlighted by a free cash flow of $68.7M in TTM 2025. The operating cash flow to net income ratio is favorable, indicating efficient cash generation from operations. Furthermore, the free cash flow to net income ratio of 1.71 signifies robust cash conversion efficiency. Overall, the cash flow position is solid, underpinning financial stability and flexibility.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
352.38M348.88M321.48M267.84M258.62M248.23M
Gross Profit
288.54M288.81M266.84M219.53M215.33M208.90M
EBIT
53.92M58.87M37.12M-24.97M-5.00M-44.37M
EBITDA
54.95M64.34M40.52M-10.69M-1.89M-45.76M
Net Income Common Stockholders
40.18M42.42M67.44M-30.20M-10.29M-49.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
106.43M104.42M82.00M65.95M87.08M95.81M
Total Assets
270.42M263.92M239.05M171.43M187.93M202.03M
Total Debt
18.66M18.83M48.10M48.59M48.13M47.70M
Net Debt
-87.77M-85.59M-33.90M-17.36M-38.96M-48.12M
Total Liabilities
67.64M70.81M96.33M189.42M187.85M202.18M
Stockholders Equity
202.78M193.11M142.72M-17.99M82.00K-150.00K
Cash FlowFree Cash Flow
68.32M64.52M24.79M-20.58M-5.45M-34.82M
Operating Cash Flow
67.55M66.20M26.77M-17.89M-1.98M-30.26M
Investing Cash Flow
-3.96M-9.58M-2.15M-2.66M-3.40M-4.55M
Financing Cash Flow
-3.61M-34.20M-8.57M-580.00K-3.35M61.56M

MiMedx Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.77
Price Trends
50DMA
7.13
Negative
100DMA
7.81
Negative
200DMA
7.51
Negative
Market Momentum
MACD
-0.06
Positive
RSI
45.25
Neutral
STOCH
19.85
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDXG, the sentiment is Negative. The current price of 6.77 is below the 20-day moving average (MA) of 6.90, below the 50-day MA of 7.13, and below the 200-day MA of 7.51, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.25 is Neutral, neither overbought nor oversold. The STOCH value of 19.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MDXG.

MiMedx Group Risk Analysis

MiMedx Group disclosed 40 risk factors in its most recent earnings report. MiMedx Group 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 0 New Risks

MiMedx Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$979.27M24.5822.29%5.34%-50.52%
57
Neutral
$949.84M-36.26%127.33%21.31%
53
Neutral
$5.14B3.23-45.01%2.85%17.55%-0.69%
50
Neutral
$1.33B-188.03%-11.42%0.26%
50
Neutral
$1.35B-23.20%24.49%5.14%
47
Neutral
$1.11B-57.19%-0.33%-3.59%
39
Underperform
$594.40M-51.85%11070.12%32.07%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MDXG
MiMedx Group
6.77
-0.74
-9.85%
CLDX
Celldex
19.78
-15.60
-44.09%
IOVA
Iovance Biotherapeutics
1.73
-7.97
-82.16%
ARDX
Ardelyx
3.97
-2.93
-42.46%
OCUL
Ocular Therapeutix
6.94
1.01
17.03%
LQDA
Liquidia Technologies
15.60
3.31
26.93%

MiMedx Group Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
MiMedx Group Highlights Growth at Healthcare Conference
Positive
May 13, 2025

MiMedx Group announced its participation in the Bank of America Securities 2025 Healthcare Conference, highlighting its updated investor presentation. The company is poised for growth with expectations of expanding its product portfolio and increasing its presence in surgical settings, driven by favorable market trends and innovative placental-derived products. The announcement underscores MiMedx’s strategic focus on expanding its global footprint and enhancing its product offerings to drive profitability and stakeholder value.

The most recent analyst rating on (MDXG) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on MiMedx Group stock, see the MDXG Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
MiMedx Group Reports Q1 2025 Financial Results
Neutral
Apr 30, 2025

On April 30, 2025, MiMedx Group announced its first quarter financial results, reporting net sales of $88 million, a 4% increase year-over-year, driven by significant growth in surgical products. Despite a decline in wound product sales and a decrease in gross margin, the company maintained a strong adjusted EBITDA margin of 20%. CEO Joseph H. Capper highlighted the company’s strategic efforts to address challenges in the Medicare landscape and expand their product pipeline, including the introduction of CELERA™. MiMedx remains focused on long-term growth, expecting high single-digit sales growth for 2025 and low double-digit growth in subsequent years.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.