TELA Bio (TELA) AI Stock Analysis

• Market Cap: $37.96M
• Dividend Yield: N/A
• Average Volume (3M): 386.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: 18.56%
• EPS Growth: 32.65%
• Country: US
• Employees: 209
• Sector: Healthcare
• Sector Strength: 69
• Industry: Medical - Devices
• EPS (TTM): -1.39
• Shares Outstanding: 39,554,770
• 10 Day Avg. Volume: 96,658
• 30 Day Avg. Volume: 386,499
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.84
• Price to Cash Flow (P/CF): -1.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.50
• Price Target Upside: 467.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

TELA Bio's stock score reflects strong revenue growth and a stable financial structure, but is weighed down by ongoing profitability challenges and bearish technical indicators. Positive projections from the earnings call offer some optimism, but the company must address operational and sales force issues to improve its market position.

Positive Factors

Market Position

TELA's products are considered best-in-class, supported by strong clinical data and trends in robotic adoption.

Market Potential

The product portfolio and growth rate support the potential for multiple expansion, making the current valuation appear too low.

Product Innovation

New products like inguinal hernia and Liquifix have been successful since their launch, providing TELA opportunities in high-volume procedures.

Negative Factors

Financial Performance

TELA reported Q4 results, which were well below estimates, with a significant sales force turnover impacting the company's performance.

Financial Stability

The company may need another round of financing to fund operations, which could negatively impact the stock.

Sales Force Challenges

The departure of 11 of 69 high-performing territory managers led to a significant drop in sales.

TELA Bio Business Overview & Revenue Model

Company Description

TELA Bio is a medical technology company focused on the design, development, and commercialization of innovative soft tissue reconstruction solutions. Operating primarily within the healthcare and biomedical sectors, TELA Bio offers a portfolio of products that utilize its proprietary tissue reinforcement technology, OviTex, designed for a range of applications including hernia repair and abdominal wall reconstruction.

How the Company Makes Money

TELA Bio generates revenue primarily through the sale of its OviTex products to hospitals, surgical centers, and healthcare providers. The company operates within the medical device industry, where it benefits from the growing demand for advanced tissue reinforcement and reconstruction solutions. Key revenue streams include direct sales to healthcare facilities and strategic partnerships with medical distributors that expand the reach of their products. TELA Bio's earnings are also influenced by factors such as the adoption rate of innovative surgical technologies, ongoing research and development efforts, and the company's ability to navigate regulatory requirements in various markets.

TELA Bio Financial Statement Overview

Summary

TELA Bio shows strong revenue growth with an 18.55% increase from 2023 to 2024. However, profitability is a concern due to negative EBIT and net profit margins. The balance sheet is solid with no debt and a stable equity ratio, though cash flow from operations is challenging. Overall, the company has a robust financial structure but needs to improve profitability and cash flow generation.

Income Statement

TELA Bio has shown consistent revenue growth over the years, with a notable increase of 18.55% from 2023 to 2024. However, profitability remains a concern, as evidenced by negative EBIT and net profit margins, indicating ongoing operational challenges. The gross profit margin is relatively healthy, suggesting some efficiency in production or service delivery. Overall, the company is growing but still struggling to turn a profit.

Balance Sheet

The company's balance sheet is solid, with no debt as of 2024, indicating a strong equity position. The equity ratio of 32.86% reflects a stable financial base. Return on equity is negative due to net losses, but the absence of debt reduces financial risk. Overall, TELA Bio maintains a stable financial position but needs to improve profitability to enhance shareholder returns.

Cash Flow

Cash flow from operations remains challenging, with zero operating cash flow in 2024, indicating difficulties in generating cash from core activities. However, financing activities have significantly bolstered cash reserves. The lack of free cash flow growth highlights the need for the company to improve operational efficiency to sustain long-term growth. Cash flow management remains a critical area for improvement.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
69.30M	58.45M	41.42M	29.46M	18.21M
	Gross Profit
46.49M	40.11M	27.04M	18.81M	11.23M
	EBIT
-34.12M	-44.08M	-39.01M	-29.45M	-25.27M
	EBITDA
-31.68M	-40.63M	-39.06M	-29.14M	-24.70M
	Net Income Common Stockholders
-37.84M	-46.66M	-44.34M	-36.11M	-31.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
52.67M	46.73M	42.02M	43.93M	74.39M
	Total Assets
86.57M	78.05M	67.86M	62.54M	86.46M
	Total Debt
41.67M	41.08M	39.92M	31.49M	30.83M
	Net Debt
-11.00M	-5.65M	-2.10M	-12.44M	-43.57M
	Total Liabilities
58.11M	59.17M	53.55M	42.45M	37.43M
	Stockholders Equity
28.46M	18.88M	14.30M	20.10M	49.03M
Cash Flow		Free Cash Flow
-42.58M	-41.47M	-42.62M	-31.06M	-24.62M
	Operating Cash Flow
-41.59M	-40.86M	-40.75M	-30.43M	-24.46M
	Investing Cash Flow
4.45M	-599.00K	-1.87M	-627.00K	9.12M
	Financing Cash Flow
43.06M	46.27M	40.85M	585.00K	44.41M

TELA Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.97
• 50DMA: Negative
• 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 TELA, the sentiment is Negative. The current price of 0.97 is below the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.82, and below the 200-day MA of 2.75, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 31.45 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TELA.

TELA Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICAD	60 Neutral	$90.31M	―	-18.09%	―	-4.15%	3.49%
ECOR	58 Neutral	$54.31M	―	-158.63%	―	57.09%	52.18%
TELA	52 Neutral	$37.96M	―	-159.87%	―	18.56%	32.65%
Sector *	51 Neutral	$5.32B	3.32	-40.25%	2.90%	17.93%	2.14%
APYX	45 Neutral	$33.66M	―	-114.70%	―	-8.11%	-23.04%
NVNO	32 Underperform	$47.87M	―	-49.39%	―	―	34.21%

TELA Bio Corporate Events

TELA Bio Projects Strong Revenue Growth for 2025

On March 20, 2025, TELA Bio reported its financial results for the fourth quarter and full year of 2024, showing a 19% revenue growth for the year, driven by increased demand for its OviTex and OviTex PRS products. Despite some disruptions affecting the fourth quarter, the company remains optimistic about capturing additional market share and restoring growth. TELA Bio also provided a revenue guidance for 2025, projecting growth of 23% to 27% over 2024, while maintaining operating expenses at the same level as the previous year.