Tactile Systems Technology (TCMD) AI Stock Analysis

• Market Cap: $299.83M
• Dividend Yield: N/A
• Average Volume (3M): 241.94K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.21
• Revenue Growth: 6.15%
• EPS Growth: -54.24%
• Country: US
• Employees: 1,037
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Devices
• EPS (TTM): 0.14
• Shares Outstanding: 22,292,145
• 10 Day Avg. Volume: 189,446
• 30 Day Avg. Volume: 241,945
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 0.91
• Enterprise Value/Ebitda: 6.96
• 1Y Price Target: $13.00
• Price Target Upside: -1.81% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 79 Outperform
• Price Target: $14.50 ▲(9.52% Upside)

Tactile Systems Technology receives a strong overall score driven by robust financial performance and positive earnings call sentiment. Technical analysis supports a bullish outlook, although valuation is fair. The company's strategic execution and revenue growth are significant strengths, outweighing concerns over adjusted EBITDA decline.

Positive Factors

Earnings

Fourth-quarter results for Tactile Medical exceeded expectations.

Financial Performance

Momentum from recent investments helps a beat and increased guidance, indicating improvements in the company's operations.

Market Position

With over $83.6 million in cash on its books and a durable gross margin profile, this is one of the rare profitable assets in small-cap medtech, likely providing support for the stock.

Negative Factors

Guidance

The company provided lower guidance for 2025.

Operational Issues

The miss stemmed from weaker lymphedema sales due to higher-than-expected sales rep turnover and productivity headwinds associated with implementing a new CRM system.

Sales Challenges

The assumption for total lymphedema revenue growth has been reduced, indicating some challenges in this area.

Tactile Systems Technology Business Overview & Revenue Model

Company Description

Tactile Systems Technology, Inc., a medical technology company, engages in the development and provision of medical devices for chronic diseases in the United States. The company offers Flexitouch Plus system, a pneumatic compression device for the treatment of lymphedema; Entre system, a portable pneumatic compression device that is used for the at-home treatment of venous disorders, such as lymphedema and chronic venous insufficiency, including venous leg ulcers; and AffloVest, a portable high frequency chest wall oscillation test for the treatment of retained pulmonary secretions such as bronchiectasis, cystic fibrosis, and various neuromuscular disorders. The company was incorporated in 1995 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

TCMD generates revenue primarily through the sale of its medical devices and related products. The company’s revenue model includes direct sales to healthcare facilities, reimbursement from insurance providers for its devices, and rental agreements for patients who may not be able to purchase the equipment outright. Key revenue streams include the ongoing sales of the Flexitouch and Entre systems, as well as consumables related to these devices. Additionally, TCMD benefits from strategic partnerships with healthcare providers and distributors, which help expand its market reach and enhance product accessibility. The company also invests in research and development to innovate and expand its product line, which can lead to increased sales and market share over time.

Tactile Systems Technology Financial Statement Overview

Summary

Tactile Systems Technology demonstrates strong financial health with consistent revenue growth and solid profitability margins, despite a slight decline in net profit margin. The balance sheet is robust with low leverage, and cash flow generation is strong, supporting the company's operations and growth initiatives.

Income Statement

Tactile Systems Technology shows a solid revenue growth trajectory with a TTM revenue growth rate of 1.94% and a strong historical trend. The gross profit margin remains robust at over 70%, indicating efficient cost management. However, the net profit margin has slightly decreased in the TTM period to 5.06% from 5.79% in the previous annual report, suggesting some pressure on profitability. The EBIT and EBITDA margins have also seen a decline, which could indicate rising operational costs or other challenges.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.09 in the TTM period, reflecting prudent financial management and low leverage. The return on equity is healthy at 7.33%, although it has slightly decreased from the previous year. The equity ratio is stable, indicating a solid capital structure. Overall, the balance sheet suggests financial stability and low risk.

Cash Flow

Cash flow performance is positive, with a free cash flow growth rate of 4.72% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is slightly above 1, showing that the company is converting its earnings into cash effectively. The free cash flow to net income ratio is high at 0.95, suggesting strong cash flow relative to earnings. Overall, the cash flow statement reflects healthy liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	298.85M	292.98M	274.42M	246.78M	208.06M	187.13M
Gross Profit	215.89M	216.69M	195.13M	175.98M	148.21M	132.81M
EBITDA	28.20M	32.37M	24.54M	-9.21M	1.92M	-834.00K
Net Income	15.11M	16.96M	28.52M	-17.87M	-11.81M	-620.00K
Balance Sheet
Total Assets	273.05M	297.92M	281.44M	255.00M	244.27M	174.09M
Cash, Cash Equivalents and Short-Term Investments	95.98M	108.91M	61.03M	38.06M	40.71M	58.56M
Total Debt	42.17M	45.11M	50.38M	72.23M	83.86M	21.39M
Total Liabilities	78.12M	81.33M	87.80M	133.60M	116.04M	49.34M
Stockholders Equity	194.93M	216.60M	193.64M	121.40M	128.23M	124.75M
Cash Flow
Free Cash Flow	39.55M	38.15M	33.37M	3.29M	276.00K	503.00K
Operating Cash Flow	41.76M	40.66M	35.85M	5.21M	2.63M	2.79M
Investing Cash Flow	-2.27M	-2.50M	-2.48M	-1.91M	-82.18M	20.18M
Financing Cash Flow	-31.58M	-4.82M	5.73M	-9.60M	59.93M	2.11M

Tactile Systems Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TCMD, the sentiment is Positive. The current price of 13.24 is above the 20-day moving average (MA) of 12.86, above the 50-day MA of 11.28, and below the 200-day MA of 13.69, indicating a neutral trend. The MACD of 0.61 indicates Positive momentum. The RSI at 66.32 is Neutral, neither overbought nor oversold. The STOCH value of 71.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TCMD.

Tactile Systems Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCMD	79 Outperform	$299.83M	21.27	7.64%	―	6.15%	-54.24%
VMD	74 Outperform	$264.13M	20.06	10.79%	―	17.11%	45.34%
CLPT	61 Neutral	$296.50M	―	-85.68%	―	19.68%	-13.17%
VREX	58 Neutral	$481.40M	―	-25.57%	―	-1.36%	-479.49%
Sector *	51 Neutral	$7.90B	-0.33	-41.70%	2.23%	23.45%	-1.99%
TLSI	47 Neutral	$257.32M	―	271.41%	―	45.50%	53.07%
NPCE	47 Neutral	$302.36M	―	-176.94%	―	23.32%	23.29%

Tactile Systems Technology Corporate Events

Tactile Systems Technology Holds 2025 Annual Stockholders Meeting

On May 7, 2025, Tactile Systems Technology held its 2025 Annual Meeting of Stockholders, where several key decisions were made. The stockholders elected directors to serve until the 2026 meeting, ratified Grant Thornton LLP as the independent auditor for 2025, approved the compensation of named executive officers, and decided to hold annual advisory votes on executive compensation. Additionally, the 2025 Equity Incentive Plan was approved.