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Tactile Systems Technology (TCMD)
NASDAQ:TCMD
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Tactile Systems Technology
(NASDAQ:TCMD)
65Neutral
Positive Factors
Financial Performance
Fourth-quarter results for Tactile Medical exceeded expectations.
Product Launch
Tactile Systems Technology launched Nimbl, a portable and user-friendly device for lymphedema, expanding access for many patients.
Negative Factors
Earnings
The AEBITDA guidance for 2025 is significantly lower than expectations, implying a -3% year-over-year growth compared to the previous years of 62% and 25% growth.
Growth Challenges
Nagging documentation requirements are hampering productivity gains within the sales force and impacting growth in other payer channels.
Guidance
The company provided lower guidance for 2025.
Tactile Systems Technology (TCMD) vs. S&P 500 (SPY)
Market Cap
$328.31M
Dividend YieldN/A
Average Volume (3M)336.65K
Price to Earnings (P/E)19.1
Beta (1Y)1.32
Revenue Growth6.76%
EPS Growth-41.38%
CountryUS
Employees1,037
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)0.69
Shares Outstanding23,585,175
10 Day Avg. Volume267,666
30 Day Avg. Volume336,655
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.12
Price to Cash Flow (P/CF)5.00
P/FCF Ratio5.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.50Price Target Upside64.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Tactile Systems Technology Business Overview & Revenue Model
Company DescriptionTactile Systems Technology, Inc. is a medical technology company. It develops and provides innovative medical devices for the treatment of chronic diseases at home. The company focus on advancing the standard of care in treating chronic diseases in the home setting to improve patient outcomes and quality of life and help control rising healthcare expenditures. It possesses a platform to deliver at-home healthcare solutions throughout the United States. Tactile Systems Technology was founded on January 30, 1995 and is headquartered in Minneapolis, MN.
How the Company Makes MoneyTactile Systems Technology generates revenue primarily through the sale of its medical devices, particularly the Flexitouch System, to patients, healthcare providers, and institutions. The company also earns income by working with insurance providers to secure reimbursement for its devices, which makes its products more accessible to patients. Furthermore, Tactile Medical invests in clinical research to demonstrate the efficacy and cost-effectiveness of its treatments, thus enhancing its marketability and adoption by healthcare professionals. Significant partnerships with healthcare providers and insurance companies help expand its reach and customer base, contributing to its earnings.
Tactile Systems Technology Financial Statement Overview
Summary
Tactile Systems Technology shows strong revenue growth and improved operational performance with a solid balance sheet, decreased debt, and increasing equity. However, cash flow volatility and recent profitability challenges suggest areas needing attention.Income Statement
Tactile Systems Technology has shown consistent revenue growth over the past years, with a notable increase from $187.1M in 2020 to $292.98M in 2024. The gross profit margin has remained robust, reflecting effective cost management. The company has turned around its EBIT and EBITDA from negative figures in earlier years to positive, indicating improved operational efficiency. However, the net profit margin has seen fluctuations, with a decrease in net income from 2023 to 2024, indicating potential challenges in maintaining profitability.78
Positive
Balance Sheet
The balance sheet of Tactile Systems Technology reflects a strong equity base, with stockholders' equity increasing over the years, reaching $216.6M in 2024. The debt-to-equity ratio has improved significantly due to reduced total debt, enhancing financial stability. The company has maintained a positive equity ratio, showcasing its ability to leverage assets effectively. However, a high cash balance relative to total debt suggests underutilized capital, which could be optimized for growth.82
Very Positive
Cash Flow
Cash flow analysis indicates a volatile free cash flow pattern, with the latest year showing zero free cash flow due to zero operating cash flow and capital expenditures. Despite this, previous years had positive free cash flow, suggesting the company can generate cash under stable conditions. The operating cash flow to net income ratio has been inconsistent, highlighting challenges in converting profits into cash. The company should focus on enhancing cash flow stability to support future growth.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 292.98M | 274.42M | 246.78M | 208.06M | 187.13M | Gross Profit |
| 191.20M | 195.13M | 175.98M | 148.21M | 132.81M | EBIT |
| 22.18M | 18.04M | -4.59M | -1.76M | -3.63M | EBITDA |
| 32.37M | 24.54M | -9.21M | 1.92M | -834.00K | Net Income Common Stockholders |
| 16.96M | 28.52M | -17.87M | -11.81M | -620.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 108.91M | 61.03M | 38.06M | 40.71M | 58.56M | Total Assets |
| 297.92M | 281.44M | 255.00M | 244.27M | 174.09M | Total Debt |
| 18.93M | 50.38M | 72.23M | 83.86M | 21.39M | Net Debt |
| -75.43M | -10.66M | 50.30M | 55.63M | -26.46M | Total Liabilities |
| 81.33M | 87.80M | 133.60M | 116.04M | 49.34M | Stockholders Equity |
| 216.60M | 193.64M | 121.40M | 128.23M | 124.75M |
| Cash Flow | Free Cash Flow | |||
| 38.15M | 33.37M | 3.29M | 276.00K | 503.00K | Operating Cash Flow |
| 40.66M | 35.85M | 5.21M | 2.63M | 2.79M | Investing Cash Flow |
| -2.50M | -2.48M | -1.91M | -82.18M | 20.18M | Financing Cash Flow |
| -4.82M | 5.73M | -9.60M | 59.93M | 2.11M |
Tactile Systems Technology Technical Analysis
Negative
13.07
Price Trends
16.35
Negative
16.41
Negative
14.64
Negative
Market Momentum
-0.90
Positive
22.73
Positive
9.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCMD, the sentiment is Negative. The current price of 13.07 is below the 20-day moving average (MA) of 14.76, below the 50-day MA of 16.35, and below the 200-day MA of 14.64, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 22.73 is Positive, neither overbought nor oversold. The STOCH value of 9.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TCMD.
Tactile Systems Technology Risk Analysis
Tactile Systems Technology disclosed 71 risk factors in its most recent earnings report. Tactile Systems Technology reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tactile Systems Technology Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $10.29B | 757.65 | 1.20% | ― | 12.86% | -84.18% | |
73 Outperform | $215.38M | 33.38 | 16.11% | ― | 15.35% | 71.35% | |
72 Outperform | $21.37B | 24.22 | 7.24% | 0.89% | 3.84% | -9.29% | |
65 Neutral | $328.31M | 19.09 | 8.27% | ― | 6.76% | -41.38% | |
61 Neutral | $221.79M | ― | -43.28% | ― | -3.92% | -18.67% | |
52 Neutral | $1.85B | ― | -0.44% | ― | 4.47% | -110.70% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% |
* Healthcare Sector Average
Performance Comparison
TCMD
Tactile Systems Technology
13.07
-3.24
-19.87%
ELMD
Electromed
24.60
8.08
48.91%
IART
Integra Lifesciences
22.24
-12.61
-36.18%
ZBH
Zimmer Biomet Holdings
107.57
-17.09
-13.71%
NVRO
Nevro Corp
5.79
-8.11
-58.35%
PEN
Penumbra
260.63
31.09
13.54%
Tactile Systems Technology Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -26.82% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with strong revenue growth and strategic initiatives in place for 2025. However, there are challenges related to Medicare policy and increased operating expenses. The overall sentiment leans towards optimism with sustainable growth plans, but mindful of the challenges ahead.Highlights
Strong Revenue Growth
Total revenue for 2024 was $293 million, representing a 6.8% growth year-over-year. Q4 revenue grew 10.2% year-over-year to $85.6 million.
Lymphedema Business Line Success
Sales grew 11% year-over-year in Q4 and were up 18.1% on a sequential basis. The launch of Nimbl for upper and lower extremity symptoms showed strong adoption.
Improved Gross Margins
Q4 gross margins increased 310 basis points year-over-year, driven by lower manufacturing and warranty costs.
Cash and Cash Equivalents Increase
Cash and cash equivalents increased sequentially by $12.2 million, closing the year with a $94.4 million cash balance.
Positive Adjusted EBITDA Growth
Adjusted EBITDA grew 5.5% year-over-year, reflecting another consecutive quarter of improvement.
Anticipated Revenue Growth in 2025
Projected full year 2025 revenue is in the range of $316 million to $322 million, representing an 8% to 10% year-over-year growth.
Lowlights
Challenges with Medicare Policy
The year-long headwind was posed by changes in the Medicare policy environment, requiring increased documentation and administrative burdens.
Increased Operating Expenses
Operating expenses increased by 17.3% to $51.9 million in Q4, driven by strategic technology investments and increased sales and marketing expenses.
Flat Adjusted EBITDA Guidance for 2025
The guidance for adjusted EBITDA in 2025 is flat to slightly down compared to previous years, indicating significant reinvestment in the business.
Company Guidance
During the fourth quarter and fiscal year 2024 earnings call for Tactile Medical, several key metrics and guidance for 2025 were outlined. The company reported total revenue of $293 million for 2024, representing a 6.8% growth year-over-year, with Q4 revenue specifically growing 10.2% to $85.6 million. The Lymphedema business line saw a 11% year-over-year increase in Q4, while Airway Clearance sales of AffloVest grew 3.8%. Gross margins improved by 310 basis points year-over-year, and adjusted EBITDA rose by 5.5%. The company anticipates 2025 revenue to range between $316 million and $322 million, marking an 8% to 10% growth. Tactile Medical plans to focus on three strategic initiatives aimed at improving market access, driving product innovation, and enhancing patient support throughout their care pathway. The company ended 2024 with $94.4 million in cash, reflecting a $12.2 million sequential increase.Tactile Systems Technology Corporate Events
Executive/Board Changes
Tactile Systems Technology Appoints Laura King to Board
Positive
Jan 13, 2025
Tactile Systems Technology, Inc. has appointed Laura G. King to its Board of Directors, effective January 13, 2025. Ms. King, a seasoned healthcare executive with extensive leadership experience, is expected to bring valuable insights to Tactile Medical as it continues to expand its impact in providing innovative at-home therapies for chronic conditions. Her appointment is seen as a strategic move to leverage her expertise in developing technologies that enhance patient care, potentially strengthening the company’s market position and benefiting stakeholders by improving patient outcomes and healthcare efficiencies.
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.