MiMedx Group (MDXG) AI Stock Analysis

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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)

Market Cap

$979.27M

Dividend YieldN/A

Average Volume (3M)776.83K

Price to Earnings (P/E)24.6

Beta (1Y)0.77

Revenue Growth5.34%

EPS Growth-50.52%

CountryUS

Employees837

SectorHealthcare

Sector Strength40

IndustryBiotechnology

Share Statistics

EPS (TTM)0.05

Shares Outstanding147,702,130

10 Day Avg. Volume649,994

30 Day Avg. Volume776,828

Financial Highlights & Ratios

PEG Ratio-7.04

Price to Book (P/B)4.81

Price to Sales (P/S)0.00

P/FCF Ratio14.31

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$12.00

Price Target Upside77.25% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

MiMedx Group Business Overview & Revenue Model

Company DescriptionMiMedx Group, Inc. is a biopharmaceutical company that specializes in the development and commercialization of regenerative biologics. The company operates primarily in the healthcare and biotechnology sectors, focusing on advanced wound care and therapeutic biologics. MiMedx's core products are derived from human placental tissue, which are used to treat chronic and acute wounds, soft tissue injuries, and other medical conditions.

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

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

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

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
352.38M	348.88M	321.48M	267.84M	258.62M	248.23M
	Gross Profit
288.54M	288.81M	266.84M	219.53M	215.33M	208.90M
	EBIT
53.92M	58.87M	37.12M	-24.97M	-5.00M	-44.37M
	EBITDA
54.95M	64.34M	40.52M	-10.69M	-1.89M	-45.76M
	Net Income Common Stockholders
40.18M	42.42M	67.44M	-30.20M	-10.29M	-49.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
106.43M	104.42M	82.00M	65.95M	87.08M	95.81M
	Total Assets
270.42M	263.92M	239.05M	171.43M	187.93M	202.03M
	Total Debt
18.66M	18.83M	48.10M	48.59M	48.13M	47.70M
	Net Debt
-87.77M	-85.59M	-33.90M	-17.36M	-38.96M	-48.12M
	Total Liabilities
67.64M	70.81M	96.33M	189.42M	187.85M	202.18M
	Stockholders Equity
202.78M	193.11M	142.72M	-17.99M	82.00K	-150.00K
Cash Flow		Free Cash Flow
68.32M	64.52M	24.79M	-20.58M	-5.45M	-34.82M
	Operating Cash Flow
67.55M	66.20M	26.77M	-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	-3.35M	61.56M

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
MDXG	76 Outperform	$979.27M	24.58	22.29%	―	5.34%	-50.52%
ARDX	57 Neutral	$949.84M	―	-36.26%	―	127.33%	21.31%
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
LQDA	50 Neutral	$1.33B	―	-188.03%	―	-11.42%	0.26%
CLDX	50 Neutral	$1.35B	―	-23.20%	―	24.49%	5.14%
OCUL	47 Neutral	$1.11B	―	-57.19%	―	-0.33%	-3.59%
IOVA	39 Underperform	$594.40M	―	-51.85%	―	11070.12%	32.07%

* Healthcare Sector Average

Performance Comparison

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.