MDxHealth (MDXH) AI Stock Analysis

• Market Cap: $85.63M
• Dividend Yield: N/A
• Average Volume (3M): 47.97K
• Price to Earnings (P/E): ―
• Beta (1Y): -1276.98
• Revenue Growth: 28.29%
• EPS Growth: 23.11%
• Country: US
• Employees: 312
• Sector: Healthcare
• Sector Strength: 74
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -1.27
• Shares Outstanding: 49,497,334
• 10 Day Avg. Volume: 57,282
• 30 Day Avg. Volume: 47,971
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.50
• Price Target Upside: 275.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

MDxHealth's strong revenue growth and positive technical momentum are offset by financial instability and valuation concerns. The optimistic outlook from the earnings call strengthens the score, yet high leverage and negative profitability weigh heavily.

Positive Factors

Financial Performance

Management is confident in its ability to meet or exceed revenue guidance for 2025 and remains on track to flip to AEBITDA positivity.

Product Growth

GPS, MDXH's largest highest margin product, grew 43% in '24 after a 46% growth in 4Q, & broadly MDXH's prostate Dx portfolio continues to have ample growth ahead.

Valuation

The Company's enterprise value is considered low relative to projected revenues, suggesting it may be undervalued.

Negative Factors

Analyst Models

The Company has guided to AEBITDA breakeven in 1H25, which is not reflected in most analyst models, and this turn in AEBITDA is possible using reasonable sales growth estimates.

Market Sentiment

Shares are down 48% year-to-date, driven down by financing overhang, limited market liquidity, and a somewhat negative sentiment toward the broader diagnostics space.

Revenue Challenges

Gross margin of 62.7% declined Y/Y due to timing and test mix, and expanded ~150bp Q/Q.

MDxHealth Business Overview & Revenue Model

Company Description

MDxHealth SA, a commercial-stage precision diagnostics company, provides urologic solutions in the United States, the Netherlands, Belgium, Spain, Poland, Italy, rest of European Union, and internationally. Its novel prostate cancer genomic testing solutions are SelectMDx, a non-invasive urine test; and ConfirmMDx, an epigenetic test, which provide physicians with a clinical pathway to identify clinically prostate cancer while minimizing the use of invasive procedures that are prone to complications. The company was formerly known as OncoMethylome Sciences SA and changed its name to MDxHealth SA in October 2010. MDxHealth SA was incorporated in 2003 and is headquartered in Herstal, Belgium.

How the Company Makes Money

MDxHealth generates revenue primarily through the sale of its proprietary diagnostic tests to healthcare providers and laboratories. The company offers tests such as ConfirmMDx for prostate cancer and SelectMDx, which help in identifying and assessing risks associated with cancer. Revenue is earned from test processing fees and agreements with healthcare institutions. MDxHealth may also engage in partnerships or collaborations with pharmaceutical companies and research institutions, contributing to its earnings through joint development projects and potential licensing agreements.

MDxHealth Financial Statement Overview

Summary

MDxHealth shows strong revenue growth but struggles with profitability and financial stability. High leverage and negative equity trends raise financial risk concerns, while persistent negative cash flow highlights a need for improved operational efficiency. Reliance on financing activities to sustain operations poses a risk if external funding diminishes.

Income Statement

MDxHealth has shown significant revenue growth over the years, particularly between 2020 and 2024, with revenue increasing from $18.37 million to $90.05 million. However, the company remains unprofitable, with negative net income and EBIT margins consistently over the years. This indicates that while the top line is improving, the company struggles with cost management and profitability.

Balance Sheet

The balance sheet reflects high leverage, with a debt-to-equity ratio that has increased over the years, indicating higher financial risk. The equity ratio has decreased considerably, and return on equity is negative due to persistent net losses. Despite an increase in total assets, the company's financial health is weakened by significant debt levels and low equity.

Cash Flow

Cash flow statements show consistent negative free cash flow, although there is an improvement in operating cash flow in 2024 compared to previous years. The company relies heavily on financing activities to support operations due to negative cash flows from operations, pointing to potential sustainability issues if external financing becomes unavailable.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
90.05M	70.19M	37.05M	22.24M	18.37M
	Gross Profit
55.14M	43.93M	19.22M	10.41M	7.85M
	EBIT
-24.72M	-27.33M	-37.90M	-26.84M	-27.12M
	EBITDA
-16.68M	-30.47M	-36.39M	-23.99M	-23.79M
	Net Income Common Stockholders
-38.07M	-43.10M	-50.19M	-30.88M	-30.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.80M	22.38M	15.50M	58.50M	15.95M
	Total Assets
157.33M	129.13M	119.14M	75.07M	31.86M
	Total Debt
60.06M	41.27M	39.79M	15.56M	15.87M
	Net Debt
13.27M	18.89M	24.29M	-42.94M	-82.00K
	Total Liabilities
142.49M	121.92M	109.82M	28.17M	26.01M
	Stockholders Equity
14.84M	7.21M	9.31M	46.90M	5.85M
Cash Flow		Free Cash Flow
-19.72M	-26.52M	-38.28M	-23.44M	-20.78M
	Operating Cash Flow
-18.53M	-21.50M	-34.12M	-22.55M	-20.24M
	Investing Cash Flow
-1.64M	-3.93M	-29.16M	-885.00K	-537.00K
	Financing Cash Flow
44.60M	32.28M	20.84M	66.50M	14.29M

MDxHealth Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.73
• 50DMA: Positive
• 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 MDXH, the sentiment is Positive. The current price of 1.73 is above the 20-day moving average (MA) of 1.60, above the 50-day MA of 1.61, and below the 200-day MA of 2.11, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.18 is Neutral, neither overbought nor oversold. The STOCH value of 58.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MDXH.

MDxHealth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XGN	61 Neutral	$76.25M	―	-93.78%	―	5.89%	38.12%
Sector *	52 Neutral	$5.28B	3.75	-42.72%	2.86%	17.70%	2.03%
MDXH	51 Neutral	$85.63M	―	-345.31%	―	28.29%	23.11%
PRE	44 Neutral	$43.98M	―	-23.82%	―	-68.28%	0.07%
BDSX	42 Neutral	$77.03M	―	-337.30%	―	45.30%	45.67%
SERA	36 Underperform	$110.37M	―	-55.78%	―	-74.84%	14.63%
VNRX	29 Underperform	$48.37M	―	138.92%	―	59.10%	37.59%