Treace Medical Concepts (TMCI) AI Stock Analysis

• Market Cap: $383.09M
• Dividend Yield: N/A
• Average Volume (3M): 339.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• Revenue Growth: 7.54%
• EPS Growth: 4.28%
• Country: US
• Employees: 477
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): -0.25
• Shares Outstanding: 62,904,953
• 10 Day Avg. Volume: 359,346
• 30 Day Avg. Volume: 339,881
• PEG Ratio: -1.01
• Price to Book (P/B): 4.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.57
• 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: $10.35
• Price Target Upside: 69.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 41 Neutral
• Price Target: $5.50 ▼(-9.69%Downside)

The score reflects significant financial challenges due to persistent losses and cash flow issues, compounded by bearish technical indicators and valuation concerns. Earnings call showed some operational improvements, but overall growth remains modest.

Positive Factors

Financial Management

The company's cash burn is expected to decrease by roughly 50% YoY for FY25, indicating improved financial management.

Growth Potential

Treace Medical Concepts is considered a rarer asset likely to attract M&A and investor attention.

Product Feedback

Management highlighted positive feedback from the limited market release of new products, with revenue contribution expected to become noticeable in the third quarter.

Negative Factors

Growth Concerns

Lapiplasty growth has stalled, raising concerns about the company's growth profile in this area.

Market Challenges

Investors have experienced multiple significant drawdowns related to softness in bunion procedures and competitive concerns, causing many to move to the sidelines.

Treace Medical Concepts Business Overview & Revenue Model

Company Description

Treace Medical Concepts, Inc., an orthopedic medical device company, engages in the design, manufacture, and marketing of medical devices for foot and ankle surgeons in the United States. It offers Lapiplasty procedure that allows podiatric surgeons to treat all three dimensions of the bunion, providing patients with a cosmetic and medical improvement. The company also provides Lapiplasty Mini-Incision precision system. In addition, it offers products to address ancillary surgical procedures, including akin osteotomies, weil osteotomies, intercuneiform stabilization, lesser tarsometatarsal joint fusions, and autograft bone harvesting, as well as for MTP fusion. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra Beach, Florida.

How the Company Makes Money

Treace Medical Concepts generates revenue primarily through the sale of its proprietary medical devices and surgical instruments, notably the Lapiplasty 3D Bunion Correction System, to hospitals and surgical centers. The company also earns income from training and supporting physicians in the use of its products, thereby facilitating broader adoption of its surgical solutions. Additionally, Treace may engage in strategic partnerships and collaborations with healthcare providers and medical institutions to expand its market reach and enhance its product offerings.

Treace Medical Concepts Financial Statement Overview

Summary

Treace Medical Concepts demonstrates solid revenue growth, but persistent operating losses and negative profit margins highlight significant challenges in cost management. The balance sheet reflects manageable leverage, but declining equity and liquidity issues from negative cash flow raise concerns about financial stability and the need for strategic improvement.

Income Statement

Treace Medical Concepts shows solid revenue growth with a 11.9% increase from 2023 to 2024, and a consistent upward trajectory over the years. However, the company is currently operating at a loss with a negative net income, resulting in negative profit margins: Gross Profit Margin at 80.4% and Net Profit Margin at -26.6% for 2024. This indicates strong revenue generation capability but challenges in cost management and profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.61, suggesting manageable leverage. However, the company has been experiencing declining equity, from $93 million in 2021 to $113 million in 2024, highlighting potential concerns about financial stability. The equity ratio stands at 52%, indicating a fair balance between equity and assets, but the company must improve its net income to enhance shareholder value.

Cash Flow

The cash flow statement reveals challenges, with an operating cash flow of $0 in 2024 and consistent negative free cash flow in previous years. The absence of free cash flow growth and the negative operating cash flow to net income ratio indicate liquidity issues and a need for improved cash management practices.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	209.36M	187.12M	141.84M	94.42M	57.37M
Gross Profit	168.26M	151.94M	114.31M	76.59M	44.90M
EBITDA	-42.07M	-39.01M	-34.84M	-15.81M	2.06M
Net Income	-55.74M	-49.53M	-47.30M	-24.61M	-6.45M
Balance Sheet
Total Assets	217.09M	251.91M	159.02M	140.82M	41.81M
Cash, Cash Equivalents and Short-Term Investments	75.68M	123.20M	81.25M	105.83M	18.08M
Total Debt	69.65M	70.30M	68.59M	29.36M	30.98M
Total Liabilities	104.20M	113.97M	98.50M	47.75M	41.03M
Stockholders Equity	112.89M	137.94M	60.53M	93.07M	776.00K
Cash Flow
Free Cash Flow	-48.76M	-46.03M	-45.49M	-19.90M	-5.56M
Operating Cash Flow	-37.17M	-34.58M	-30.65M	-17.19M	-4.49M
Investing Cash Flow	35.38M	-81.30M	-76.52M	-2.71M	-1.07M
Financing Cash Flow	160.00K	109.38M	20.81M	107.65M	11.50M

Treace Medical Concepts Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.09
• 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 TMCI, the sentiment is Negative. The current price of 6.09 is above the 20-day moving average (MA) of 5.81, below the 50-day MA of 6.31, and below the 200-day MA of 7.24, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 52.93 is Neutral, neither overbought nor oversold. The STOCH value of 74.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMCI.

Treace Medical Concepts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRC	70 Outperform	$376.87M	16.05	72.68%	2.90%	-4.15%	-17.17%
VREX	66 Neutral	$355.65M	―	-7.46%	―	-3.31%	-199.23%
SIBN	65 Neutral	$785.39M	―	-15.96%	―	22.60%	41.26%
KIDS	64 Neutral	$548.39M	―	-11.33%	―	31.28%	-81.86%
Sector *	51 Neutral	$7.50B	0.32	-61.87%	2.27%	17.10%	1.59%
OFIX	49 Neutral	$433.34M	―	-27.82%	―	5.85%	-8.92%
TMCI	41 Neutral	$383.09M	―	-45.73%	―	7.54%	4.28%

Treace Medical Concepts Corporate Events

Treace Medical Elects Directors at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on May 20, 2025, Treace Medical Concepts, Inc. announced the election of Lawrence W. Hamilton and Deepti Jain as Class I directors for a three-year term. Additionally, the stockholders approved the executive compensation on an advisory basis and ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (TMCI) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Treace Medical Concepts stock, see the TMCI Stock Forecast page.

Treace Medical Concepts CEO to Become Board Chairman

On April 2, 2025, James T. Treace announced his retirement from the board of Treace Medical Concepts, effective after the 2025 Annual Meeting. He has served since 2014 and his decision was not due to any disagreements with the company. Following his retirement, John T. Treace, the company’s CEO and founder, will assume the role of Chairman of the Board while continuing his CEO duties. This transition aims to guide the company through its next phase of growth and innovation in the bunion treatment market.