Treace Medical Concepts (TMCI) AI Stock Analysis

• Market Cap: $189.88M
• Dividend Yield: N/A
• Average Volume (3M): 861.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.03
• Revenue Growth: 7.90%
• EPS Growth: 19.92%
• Country: US
• Employees: 477
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.26
• Shares Outstanding: 63,718,075
• 10 Day Avg. Volume: 973,716
• 30 Day Avg. Volume: 861,487
• PEG Ratio: -0.75
• Price to Book (P/B): 4.09
• Price to Sales (P/S): 2.21
• P/FCF Ratio: -9.48
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 2.01
• Enterprise Value/Gross Profit: 2.51
• Enterprise Value/Ebitda: -12.63
• 1Y Price Target: $5.47
• Price Target Upside: 83.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.83
• Revenue Forecast (FY): $222.12M

• Rating: 42 Neutral
• Price Target: $2.50 ▼(-16.11% Downside)

Treace Medical Concepts faces significant challenges with profitability and cash flow, reflected in a low financial performance score. Technical analysis indicates strong bearish momentum, and valuation metrics are poor due to negative earnings. While the earnings call showed some positive strategic shifts, the overall outlook remains cautious.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for TMCI's products, suggesting a robust market position and potential for future expansion.

Product Portfolio Expansion

Expanding the product portfolio enhances TMCI's competitive edge, catering to diverse surgeon preferences and potentially increasing market share.

Improved Leverage Management

Better leverage management strengthens the balance sheet, providing financial stability and flexibility for future investments and growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder TMCI's ability to reinvest in growth and innovation, impacting long-term financial health.

Cash Flow Management

Negative cash flows limit TMCI's capacity to fund operations and strategic initiatives, posing risks to sustainability and expansion efforts.

Revised Revenue Outlook

A modest revenue outlook revision suggests potential market challenges or competitive pressures, impacting growth expectations and investor confidence.

Treace Medical Concepts Business Overview & Revenue Model

Company Description

Treace Medical Concepts, Inc. (TMCI) is a medical device company focused on developing innovative solutions for the orthopedic sector, particularly in the field of bunion correction. The company specializes in advanced surgical technologies and products that enhance surgical outcomes and patient recovery, with a primary emphasis on its proprietary Lapiplasty® procedure, which addresses the underlying causes of bunions. TMCI operates primarily within the orthopedic device market, offering a range of products designed to improve the efficiency and effectiveness of surgical interventions.

How the Company Makes Money

TMCI generates revenue primarily through the sale of its orthopedic surgical products, particularly those related to the Lapiplasty® procedure. The company's revenue model is based on direct sales to hospitals and surgical centers, along with distribution through medical device wholesalers. Key revenue streams include product sales from its proprietary devices, instrumentation, and surgical kits. Additionally, TMCI may benefit from strategic partnerships with healthcare providers and distributors to expand its market reach. The company also invests in ongoing research and development to innovate and diversify its product offerings, which can lead to new revenue opportunities.

Treace Medical Concepts Financial Statement Overview

Summary

Treace Medical Concepts shows consistent revenue growth but struggles with profitability and cash flow. The company has improved its debt-to-equity ratio, but ongoing losses and negative cash flows remain significant concerns.

Income Statement

Treace Medical Concepts shows a consistent revenue growth trend, with a TTM growth rate of 2.4%. However, profitability remains a challenge, as indicated by negative net profit and EBIT margins. The gross profit margin is strong at approximately 80%, suggesting efficient production processes, but high operating expenses are impacting overall profitability.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.14 in the TTM period, indicating better leverage management. However, the return on equity remains negative, reflecting ongoing losses. The equity ratio is stable, suggesting a balanced asset structure, but the company needs to improve profitability to enhance shareholder returns.

Cash Flow

Treace Medical Concepts faces challenges in cash flow management, with negative operating and free cash flows. The free cash flow to net income ratio is positive, indicating some efficiency in converting net income to cash, but overall cash flow growth is negative, highlighting the need for improved cash generation strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	218.88M	209.36M	187.12M	141.84M	94.42M	57.37M
Gross Profit	174.83M	168.26M	151.94M	114.31M	77.53M	44.90M
EBITDA	-34.77M	-42.07M	-39.01M	-36.28M	-15.81M	2.06M
Net Income	-50.11M	-55.74M	-49.53M	-42.81M	-20.55M	-3.67M
Balance Sheet
Total Assets	196.59M	217.09M	251.91M	159.02M	140.82M	41.81M
Cash, Cash Equivalents and Short-Term Investments	57.42M	75.68M	123.20M	81.25M	105.83M	18.08M
Total Debt	12.93M	69.65M	70.30M	68.59M	29.36M	30.98M
Total Liabilities	107.40M	104.20M	113.97M	98.50M	47.75M	41.03M
Stockholders Equity	89.19M	112.89M	137.94M	60.53M	93.07M	776.00K
Cash Flow
Free Cash Flow	-26.34M	-48.76M	-46.03M	-45.49M	-19.90M	-5.56M
Operating Cash Flow	-12.15M	-37.17M	-34.58M	-30.65M	-17.19M	-4.49M
Investing Cash Flow	7.01M	35.38M	-81.30M	-76.52M	-2.71M	-1.07M
Financing Cash Flow	721.00K	160.00K	109.38M	20.81M	107.65M	11.50M

Treace Medical Concepts Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 2.98 is below the 20-day moving average (MA) of 3.94, below the 50-day MA of 5.48, and below the 200-day MA of 6.62, indicating a bearish trend. The MACD of -0.87 indicates Negative momentum. The RSI at 24.66 is Positive, neither overbought nor oversold. The STOCH value of 72.31 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
TCMD	75 Outperform	$574.25M	33.19	8.80%	―	9.28%	21.00%
BVS	64 Neutral	$628.17M	67.59	4.97%	―	1.58%	―
SIBN	57 Neutral	$844.39M	―	-12.91%	―	23.27%	43.90%
KIDS	53 Neutral	$463.68M	―	-12.67%	―	19.90%	-57.90%
OFIX	52 Neutral	$637.16M	-5.30	-24.60%	―	4.31%	3.26%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TMCI	42 Neutral	$189.88M	―	-51.63%	―	7.90%	19.92%

Treace Medical Concepts Corporate Events

Treace Medical’s Earnings Call: Growth Amid Challenges

The recent earnings call for Treace Medical Concepts, Inc. presented a mixed sentiment, highlighting both achievements and challenges. The company reported notable revenue growth and improved adjusted EBITDA, yet faced hurdles such as a revised revenue outlook, pressure on Lapiplasty volumes, and economic impacts on elective procedures.

Treace Medical Concepts Reports Q3 2025 Financial Results

Treace Medical Concepts, Inc. is a medical technology company specializing in innovative surgical solutions for bunion and midfoot deformities, with a focus on minimally invasive procedures and advanced digital solutions.

Treace Medical’s Innovative Foot Correction Study: A Potential Game-Changer?

Treace Medical Concepts, Inc. is conducting a study titled ‘Radiographic and Patient Reported Outcomes Following Combined Adductoplasty™ and Lapiplasty® Procedures for Correction of Metatarsus Adductus and Hallux Valgus (MTA3D)’. The study aims to evaluate the effectiveness of combining Adductoplasty™ and Lapiplasty® procedures in correcting metatarsus adductus and hallux valgus, conditions affecting foot alignment. This research is significant as it could offer improved treatment options for patients suffering from these conditions.