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MDxHealth (MDXH)
NASDAQ:MDXH
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MDxHealth
(NASDAQ:MDXH)
Rating:53Neutral
Price Target:
$3.00
▼(-8.81% Downside)
Positive Factors
Financial Performance
Management expressed confidence in reaching adjusted EBITDA break-even in the second quarter.
Revenue Growth
Momentum across the portfolio continues with total revenue growing 20% Y/Y with both liquid and tissue volumes strong.
Strategic Acquisition
The acquisition of the ExoDx Prostate test is seen as strategically fitting well with MDx's offerings and having a better product/market fit.
Negative Factors
Market Valuation
Shares of MDXH trade at just 0.8x our 2026 rev estimate of $128M, below small cap peers at 2.0x, and MDXH is primed to achieve multiple expansion.
Price Target
The price target was adjusted from $7.00 to $5.00, indicating a more conservative outlook.
MDxHealth (MDXH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$143.54M
Dividend YieldN/A
Average Volume (3M)110.05K
Price to Earnings (P/E)―
Beta (1Y)1.16
Revenue Growth22.56%
EPS Growth41.62%
CountryUS
Employees312
SectorHealthcare
Sector Strength48
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.15
Shares Outstanding49,497,334
10 Day Avg. Volume134,883
30 Day Avg. Volume110,051
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue2.30
Enterprise Value/Gross Profit3.73
Enterprise Value/Ebitda-14.58
Forecast
1Y Price Target
$5.25Price Target Upside59.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
MDxHealth Business Overview & Revenue Model
Company DescriptionMDxHealth (MDXH) is a molecular diagnostics company focused on developing and commercializing innovative tests that help in the diagnosis and management of cancer. The company primarily operates in the healthcare sector, specializing in genomic tests that provide critical information for prostate cancer, bladder cancer, and other conditions. MDxHealth's core products include the ConfirmMDx test for prostate cancer and the UroMark test for bladder cancer, aimed at improving patient outcomes through personalized medicine.
How the Company Makes MoneyMDxHealth generates revenue primarily through the sales of its diagnostic tests to healthcare providers and institutions. The company operates a laboratory that processes these tests and bills insurance companies, healthcare systems, or patients directly for the services rendered. Key revenue streams include payments from insurance reimbursements and direct sales of its assays. Additionally, MDxHealth engages in partnerships and collaborations with pharmaceutical companies and research institutions to enhance its product offerings and expand its market reach, which can also contribute to its earnings through licensing agreements and joint ventures.
MDxHealth Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q1-2025)
| % Change Since: 32.13%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call for MDxHealth reflected strong revenue growth and operational performance, particularly in the tissue-based test segment, with the company maintaining a strong financial position. However, there was an increase in net loss due to non-cash adjustments, and growth in the liquid-based tests segment was less impressive. Overall, the company demonstrated significant positive trends, particularly in revenue and profitability outlooks.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
MDxHealth reported a 22% increase in revenues for the first quarter of 2025, reaching $24.3 million compared to $19.8 million in the same quarter of 2024.
Sustained Revenue Growth Record
This quarter marks the 16th consecutive quarter of 20% or greater revenue growth for MDxHealth.
Improved Gross Profit and Margin
Gross profit for the quarter was $15.5 million, a 29% increase from the prior year period, with gross margins improving to 63.8% from 60.8%.
Significant Growth in Tissue-Based Tests
Tissue-based test volume grew 41% in Q1, with the Confirm mdx and GPS tests contributing significantly to this growth.
Positive Adjusted EBITDA Outlook
MDxHealth expects to achieve positive adjusted EBITDA in the second quarter of 2025.
Financial Stability
Cash and cash equivalents were $65.7 million as of March 31, 2025, with a pro forma cash balance of $37.7 million after a $28 million earn-out payment.
Negative Updates
Increased Net Loss
Net loss increased by 8% to $9.2 million compared to $8.5 million in the prior year period, driven by non-cash fair value adjustments of $2.5 million.
Flat Growth in Liquid-Based Tests
Liquid-based test volumes increased by only 9%, indicating slower growth compared to the tissue-based segment.
Company Guidance
During the MDxHealth First Quarter 2025 earnings call, the company provided guidance underscoring a robust outlook, targeting 20% or greater revenue growth for 2025 and beyond. The quarter marked the 16th consecutive period of achieving this growth benchmark, with Q1 revenue increasing by 22% and tissue-based test volumes rising by 41%. The company reported Q1 total billable volumes of approximately 24,000 tests, including 12,600 tissue-based tests and nearly 12,000 liquid-based tests. These results contributed to a Q1 revenue of $24.3 million, up from $19.8 million in the previous year, and a gross profit of $15.5 million, resulting in a 63.8% gross margin. MDxHealth reiterated its revenue guidance for 2025 at $108 million to $110 million and projected achieving positive adjusted EBITDA in Q2 2025.MDxHealth Financial Statement Overview
Summary
MDxHealth shows strong revenue growth but struggles with profitability, high leverage, and negative cash flow. The financial instability is a significant concern despite the growth potential.Income Statement
MDxHealth's revenue has shown a strong upward trend with significant growth in recent years. However, the company continues to face challenges with profitability, as indicated by negative EBIT and net income. Despite the increase in gross profit, the net profit margin remains negative, reflecting ongoing financial pressure.42
Neutral
Balance Sheet
The balance sheet indicates a high level of debt relative to equity, leading to a concerning debt-to-equity ratio. The equity ratio is low, showing limited shareholder equity in comparison to total assets. These factors suggest a leveraged position, which can pose financial risks if not managed carefully.35
Negative
Cash Flow
While MDxHealth's free cash flow remains negative, there is an improvement in cash flow from financing activities. The operating cash flow continues to be negative, indicating challenges in generating cash from operations. The company shows some resilience through financing activities, but sustained negative free cash flow is a concern.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 69.77M | 90.05M | 70.19M | 37.05M | 22.24M | 18.37M |
| Gross Profit | 43.06M | 55.14M | 43.93M | 19.22M | 10.41M | 7.85M |
| EBITDA | -11.02M | -21.70M | -30.47M | -36.39M | -23.99M | -23.79M |
| Net Income | -31.93M | -38.07M | -43.10M | -50.19M | -30.88M | -30.01M |
Balance Sheet | ||||||
| Total Assets | 174.83M | 157.33M | 129.13M | 119.14M | 75.07M | 31.86M |
| Cash, Cash Equivalents and Short-Term Investments | 65.67M | 46.80M | 22.38M | 15.50M | 58.50M | 15.95M |
| Total Debt | 83.98M | 60.06M | 41.27M | 39.79M | 15.56M | 15.87M |
| Total Liabilities | 168.87M | 142.49M | 121.92M | 109.82M | 28.17M | 26.01M |
| Stockholders Equity | 5.97M | 14.84M | 7.21M | 9.31M | 46.90M | 5.85M |
Cash Flow | ||||||
| Free Cash Flow | -15.68M | -19.72M | -26.52M | -38.28M | -23.44M | -20.78M |
| Operating Cash Flow | -14.00M | -18.53M | -21.50M | -34.12M | -22.55M | -20.24M |
| Investing Cash Flow | -1.26M | -1.64M | -3.93M | -29.16M | -885.00K | -537.00K |
| Financing Cash Flow | 68.91M | 44.60M | 32.28M | 20.84M | 66.50M | 14.29M |
MDxHealth Technical Analysis
Positive
3.29
Price Trends
2.42
Positive
2.12
Positive
2.01
Positive
Market Momentum
0.20
Negative
76.11
Negative
88.86
Negative
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 3.29 is above the 20-day moving average (MA) of 2.73, above the 50-day MA of 2.42, and above the 200-day MA of 2.01, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 76.11 is Negative, neither overbought nor oversold. The STOCH value of 88.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MDXH.
MDxHealth Risk Analysis
MDxHealth disclosed 57 risk factors in its most recent earnings report. MDxHealth 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
MDxHealth Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $212.34M | ― | -87.94% | ― | 3.89% | 7.92% | |
57 Neutral | £5.54B | 4.96 | -44.55% | 2.27% | 28.02% | -9.61% | |
54 Neutral | $100.62M | ― | -26.74% | ― | 85.33% | 30.70% | |
53 Neutral | $143.54M | ― | -1552.23% | ― | 22.56% | 41.62% | |
49 Neutral | $59.64M | ― | -219.68% | ― | 25.70% | 39.23% | |
47 Neutral | $73.27M | ― | 138.92% | ― | 35.10% | 39.15% | |
42 Neutral | $90.59M | ― | -44.24% | ― | 0.93% | 13.99% |
* Healthcare Sector Average
Performance Comparison
MDXH
MDxHealth
3.29
0.42
14.63%
VNRX
VolitionRX
0.69
0.09
15.00%
XGN
Exagen
10.10
6.98
223.72%
BDSX
Biodesix
0.45
-1.36
-75.14%
PRE
Prenetics Group
7.25
2.09
40.50%
SERA
Sera Prognostics
2.38
-5.05
-67.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.