TELA Bio (TELA) AI Stock Analysis

• Market Cap: $67.24M
• Dividend Yield: N/A
• Average Volume (3M): 59.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 12.78%
• EPS Growth: 15.53%
• Country: US
• Employees: 209
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Devices
• EPS (TTM): -0.25
• Shares Outstanding: 39,554,990
• 10 Day Avg. Volume: 57,756
• 30 Day Avg. Volume: 59,525
• PEG Ratio: 1.49
• Price to Book (P/B): 5.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.16
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 1.65
• Enterprise Value/Ebitda: -0.56
• 1Y Price Target: $4.00
• Price Target Upside: 135.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: $2.00 ▲(17.65%Upside)

TELA Bio's strong revenue growth and strategic changes are promising, particularly in international markets. However, profitability challenges, high leverage, and negative cash flows offset these strengths. The technical indicators suggest caution, and the valuation is unattractive due to ongoing losses.

Positive Factors

Market Position

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

New Product Launches

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

Product Performance

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

Negative Factors

Financial Performance

TELA reported results significantly below estimates, with a significant sales force turnover impacting the company's performance.

Funding Needs

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

Sales Force Turnover

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, Inc., a commercial-stage medical technology company, focuses on providing soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's anatomy. It provides a portfolio of OviTex Reinforced Tissue Matrix (OviTex) products for hernia repair and abdominal wall reconstruction; and OviTex PRS Reinforced Tissue Matrix products to address the unmet needs in plastic and reconstructive surgery, as well as OviTex for Laparoscopic and Robotic Procedures, a sterile reinforced tissue matrix derived from ovine rumen with polypropylene fiber intended to be used in laparoscopic and robotic-assisted hernia surgical repairs. The company markets its products through a single direct sales force, principally in the United States. TELA Bio, Inc. was incorporated in 2012 and is headquartered in Malvern, Pennsylvania.

How the Company Makes Money

TELA Bio generates revenue primarily through the sale of its proprietary surgical solutions, particularly the OviTex product line. The company sells these products directly to hospitals and surgical centers, as well as through distributors. TELA Bio's revenue model is based on the adoption and utilization of its products by surgeons performing hernia repair and plastic and reconstructive surgery. Significant partnerships with healthcare providers and positive clinical outcomes support the company's sales and market penetration. Additionally, TELA Bio may engage in research collaborations and licensing agreements that contribute to its revenue streams.

TELA Bio Financial Statement Overview

Summary

TELA Bio's revenue growth is a positive indicator, with notable improvements in the last year. However, the company remains unprofitable, facing operational losses and high financial leverage, which are concerning for financial stability. Negative cash flows further exacerbate these risks.

Income Statement

TELA Bio has shown consistent revenue growth over recent years, with a TTM revenue growth rate of 2.77% and a significant annual increase from 2022 to 2023 at 40%. However, the company remains unprofitable, with negative EBIT and EBITDA margins indicating ongoing operational losses. The gross profit margin is relatively stable at around 67%, which is a positive aspect, but the persistent net losses highlight the challenge in achieving profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, indicating high financial leverage which poses a risk. The equity ratio is low at 23.46%, suggesting limited shareholder equity relative to total assets. Although cash reserves are substantial, the continuous losses are eroding equity. The company's return on equity is negative due to its negative net income.

Cash Flow

Cash flow analysis shows negative operating cash flow, which is concerning, yet offset by positive financing cash flows, mainly through debt. The free cash flow remains negative, despite a slight improvement in TTM compared to the previous year. The operating cash flow to net income ratio is below 1, indicating cash flow issues tied to profitability concerns.

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
EBITDA	-31.68M	-40.63M	-39.06M	-29.14M	-24.70M
Net Income	-37.84M	-46.66M	-44.34M	-36.11M	-31.88M
Balance Sheet
Total Assets	86.57M	78.05M	67.86M	62.54M	86.46M
Cash, Cash Equivalents and Short-Term Investments	52.67M	46.73M	42.02M	43.93M	74.39M
Total Debt	41.67M	41.08M	39.92M	31.49M	30.83M
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: 1.70
• 50DMA: Negative
• 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 TELA, the sentiment is Negative. The current price of 1.7 is below the 20-day moving average (MA) of 1.97, below the 50-day MA of 1.80, and below the 200-day MA of 2.16, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 39.84 is Neutral, neither overbought nor oversold. The STOCH value of 47.00 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
ECOR	63 Neutral	$51.67M	―	-276.15%	―	41.54%	42.59%
TELA	60 Neutral	$67.24M	―	-267.29%	―	12.78%	15.53%
ICAD	60 Neutral	$106.31M	―	-16.53%	―	-4.15%	3.49%
NVNO	58 Neutral	$85.75M	―	-52.88%	―	―	29.64%
APYX	52 Neutral	$72.19M	―	-130.26%	―	-6.27%	16.76%
Sector *	51 Neutral	$7.30B	0.27	-62.71%	2.44%	15.02%	0.60%
MODD	―	$39.00M	―	-131.58%	―	―	―

TELA Bio Corporate Events

TELA Bio Announces Leadership Change with New President

On May 30, 2025, TELA Bio announced the resignation of Jeffrey Blizard from its Board of Directors, effective June 2, 2025, as he transitions to the role of President. This strategic leadership change is expected to enhance TELA Bio’s growth trajectory, with Blizard bringing extensive industry experience from his previous role at Abiomed, a Johnson & Johnson company. The appointment is seen as a significant step in strengthening the company’s executive team to drive commercial performance and value delivery to stakeholders.

The most recent analyst rating on (TELA) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on TELA Bio stock, see the TELA Stock Forecast page.

TELA Bio Approves Key Proposals at Annual Meeting

On May 28, 2025, TELA Bio, Inc. held its Annual Meeting of Stockholders where several key proposals were approved. The stockholders voted to amend the 2019 Equity Incentive Plan by increasing the authorized shares by 3,500,000 and removing the ‘evergreen’ provision. Additionally, the election of Class III directors, the ratification of KPMG LLP as the independent public accountant, and the approval of executive compensation were confirmed. The amendment to the company’s Certificate of Incorporation to limit officer liability was also approved, reflecting strategic governance adjustments.

The most recent analyst rating on (TELA) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on TELA Bio stock, see the TELA Stock Forecast page.

TELA Bio Reports Q1 2025 Revenue Growth Amid Losses

On May 8, 2025, TELA Bio reported its financial results for the first quarter of 2025, showing a revenue increase to $18.5 million, up 12% from the previous year. The growth was driven by increased demand for their OviTex products and the full U.S. commercial launch of larger-sized OviTex PRS. Despite the revenue growth, the company reported a net loss of $11.3 million, attributed to decreased gross margins and increased operating expenses. TELA Bio reiterated its full-year revenue guidance, expecting a 23% to 27% growth over 2024, and highlighted the optimization of its sales organization as a key factor in achieving new account wins and market penetration.