Tactile Systems Technology (TCMD) AI Stock Analysis

• Market Cap: $645.95M
• Dividend Yield: N/A
• Average Volume (3M): 451.73K
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.62
• Revenue Growth: 9.28%
• EPS Growth: 21.00%
• Country: US
• Employees: 1,037
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.36
• Shares Outstanding: 22,335,583
• 10 Day Avg. Volume: 384,440
• 30 Day Avg. Volume: 451,726
• PEG Ratio: -0.56
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 10.73
• Enterprise Value/Market Cap: 0.41
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 1.12
• Enterprise Value/Ebitda: 7.42
• 1Y Price Target: $26.67
• Price Target Upside: -7.78% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.61
• Revenue Forecast (FY): $319.73M

• Rating: 76 Outperform
• Price Target: $31.00 ▲(7.19% Upside)

Tactile Systems Technology's strong earnings call and positive corporate events, including a share buyback program, significantly boost its stock score. The technical analysis indicates strong upward momentum, although the stock may be overbought. Financial performance is solid but shows room for improvement in operational efficiency and cash flow growth. The valuation is relatively high, which slightly tempers the overall score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Product Innovation

Innovative product developments can strengthen competitive positioning and drive future revenue through enhanced product offerings.

Share Buyback Program

The share buyback program reflects confidence in financial health and can enhance shareholder value by reducing share count.

Negative Factors

Operational Efficiency

Declining net profit margins suggest pressure on operational efficiency, which may impact profitability if not addressed.

Free Cash Flow Growth

Reduced free cash flow growth can limit the company's ability to invest in new opportunities and manage financial obligations.

Commercial and VA Channels Decline

Declines in key channels could hinder revenue growth and market penetration if not countered with strategic initiatives.

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

Tactile Systems Technology generates revenue primarily through the sale of its medical devices and related products, which are often reimbursed by insurance providers, including Medicare. The company has established key partnerships with various healthcare systems and distributors, facilitating broader market access for its products. Additionally, TCMD benefits from a recurring revenue model, as patients may require ongoing supplies of disposables for their pneumatic compression devices, leading to repeat purchases. The company's strategic focus on innovation and expanding its product offerings also contributes to its revenue growth, along with efforts to increase awareness and adoption of its therapies among healthcare professionals.

Tactile Systems Technology Financial Statement Overview

Summary

Tactile Systems Technology shows solid financial performance with consistent revenue growth and strong gross profit margins. The balance sheet is stable with low leverage, and cash flow metrics indicate efficient cash generation. However, there are areas for improvement in operational efficiency and free cash flow growth.

Income Statement

Tactile Systems Technology has shown consistent revenue growth, with a TTM revenue increase of 4.24% and a strong gross profit margin of 72.24%. However, the net profit margin has slightly decreased to 5.06% from 5.79% in the previous year. The EBIT and EBITDA margins have also seen a decline, indicating some pressure on operational efficiency. Overall, the company demonstrates solid revenue growth and profitability, but there are areas for improvement in operational margins.

Balance Sheet

The company's balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.22, indicating prudent leverage management. The return on equity has decreased to 7.33% from 7.83%, suggesting a slight decline in profitability relative to equity. The equity ratio remains strong, showcasing a solid capital structure. While the company maintains a healthy balance sheet, the slight dip in ROE indicates room for enhancing shareholder returns.

Cash Flow

The cash flow statement reveals a decrease in free cash flow growth by 14.9% in the TTM period, which could be a concern for future investments. However, the operating cash flow to net income ratio is strong at 1.03, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio remains robust at 0.95, suggesting good cash conversion. Despite the decline in free cash flow growth, the company maintains strong cash flow metrics, supporting its operational needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	311.51M	292.98M	274.42M	246.78M	208.06M	187.13M
Gross Profit	233.51M	216.69M	195.13M	175.98M	148.21M	132.81M
EBITDA	35.38M	32.37M	26.42M	1.75M	1.92M	-834.00K
Net Income	18.17M	16.96M	28.52M	-17.87M	-11.81M	-620.00K
Balance Sheet
Total Assets	259.18M	297.92M	281.44M	255.00M	244.27M	174.09M
Cash, Cash Equivalents and Short-Term Investments	65.97M	108.91M	75.23M	38.06M	40.71M	58.56M
Total Debt	16.73M	45.11M	50.38M	72.23M	80.61M	21.39M
Total Liabilities	54.23M	81.33M	87.80M	133.60M	116.04M	49.34M
Stockholders Equity	204.95M	216.60M	193.64M	121.40M	128.23M	124.75M
Cash Flow
Free Cash Flow	39.46M	38.15M	33.37M	3.29M	276.00K	503.00K
Operating Cash Flow	41.85M	40.66M	35.85M	5.21M	2.63M	2.79M
Investing Cash Flow	-2.45M	-2.50M	-2.48M	-1.91M	-82.18M	20.18M
Financing Cash Flow	-55.58M	-4.82M	5.73M	-9.60M	59.93M	2.11M

Tactile Systems Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 28.92 is above the 20-day moving average (MA) of 27.37, above the 50-day MA of 22.25, and above the 200-day MA of 14.61, indicating a bullish trend. The MACD of 1.88 indicates Positive momentum. The RSI at 69.41 is Neutral, neither overbought nor oversold. The STOCH value of 71.28 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	76 Outperform	$645.95M	37.34	8.80%	―	9.28%	21.00%
VMD	72 Outperform	$282.09M	22.44	10.53%	―	18.90%	29.22%
CBLL	61 Neutral	$786.43M	-14.63	-59.78%	―	―	―
TLSI	54 Neutral	$370.74M	-3.68	―	―	49.52%	19.34%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OM	43 Neutral	$67.09M	-0.28	-92.33%	―	4.65%	68.71%
SNWV	42 Neutral	$276.58M	-19.12	―	―	40.89%	-749.65%

Tactile Systems Technology Corporate Events

Tactile Systems Announces $25M Share Buyback Program

On November 3, 2025, Tactile Systems Technology announced a new share repurchase program, authorizing the buyback of up to $25 million of its common stock by November 3, 2027. This initiative is expected to be funded through existing cash and future cash flows, reflecting the company’s confidence in its financial health and market position. The announcement coincided with the release of the company’s third-quarter financial results, which showed a 17% increase in total revenue to $85.8 million and a net income rise to $8.2 million. The company also highlighted the successful repayment of a $24 million term loan and an increase in its revolving credit facility capacity. These developments underscore Tactile Medical’s strategic focus on financial and operational growth, positioning it strongly for the remainder of 2025 and beyond.