Treace Medical Concepts (TMCI) AI Stock Analysis

• Market Cap: $393.57M
• Dividend Yield: N/A
• Average Volume (3M): 258.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.07
• 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: 63,173,126
• 10 Day Avg. Volume: 252,819
• 30 Day Avg. Volume: 258,452
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $6.07
• Price Target Upside: 36.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.83
• Revenue Forecast (FY): $222.12M

• Rating: 44 Neutral
• Price Target: $4.50 ▲(0.90% Upside)

Treace Medical Concepts faces significant challenges with profitability and cash flow, reflected in a low financial performance score. Technical indicators suggest bearish momentum, and valuation metrics are unfavorable due to ongoing losses. While the earnings call showed some positive strategic initiatives, the overall outlook remains cautious due to economic pressures and revised revenue guidance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates successful market penetration and product adoption, strengthening the company's market position.

Product Portfolio Expansion

Expanding the product portfolio enhances the company's ability to meet diverse surgeon preferences, potentially increasing market share.

Management Strength

Strengthening the sales team with experienced leaders can drive strategic growth and improve market execution.

Negative Factors

Negative Cash Flows

Persistent negative cash flows threaten financial sustainability, limiting the company's ability to invest in growth and innovation.

Revised Revenue Outlook

Lowered revenue guidance reflects challenges in maintaining growth momentum, potentially impacting long-term financial performance.

Pressure on Lapiplasty Volumes

Shifts in surgeon preferences towards minimally invasive procedures could reduce demand for core products, affecting revenue.

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

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 steady revenue growth but struggles with profitability and cash flow. The company has improved leverage management, but ongoing losses and negative cash flows pose significant risks.

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	76.59M	44.90M
EBITDA	-38.28M	-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: 4.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 4.46 is below the 20-day moving average (MA) of 6.42, below the 50-day MA of 6.65, and below the 200-day MA of 7.11, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 20.43 is Positive, neither overbought nor oversold. The STOCH value of 27.10 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	70 Outperform	$495.40M	28.63	8.80%	―	9.28%	21.00%
BVS	66 Neutral	$624.23M	-1,020.27	4.97%	―	1.58%	―
SIBN	57 Neutral	$655.31M	―	-14.18%	―	22.93%	43.83%
OFIX	52 Neutral	$592.41M	-4.92	-24.60%	―	4.31%	3.26%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
KIDS	47 Neutral	$426.57M	―	-12.67%	―	19.90%	-57.90%
TMCI	44 Neutral	$393.57M	―	-51.63%	―	7.90%	19.92%

Treace Medical Concepts Corporate Events

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.

Treace Medical Concepts: Positive Q2 Earnings Call Highlights

Treace Medical Concepts, Inc. recently held its second-quarter earnings call, revealing a generally positive sentiment driven by strong revenue growth and successful product portfolio expansion. The company showcased significant improvements in profitability metrics, although it faced some financial challenges, including a slight decline in gross margin and a decrease in cash reserves. Strategic initiatives and new product launches are anticipated to sustain the company’s growth trajectory.

Treace Medical Concepts Reports Q2 2025 Financial Results

Treace Medical Concepts, Inc. is a medical technology company specializing in innovative surgical solutions for bunion and midfoot deformities, aiming to advance the standard of care in this sector. In its second quarter of 2025, Treace Medical Concepts reported a 7% increase in revenue to $47.4 million compared to the same period in 2024, alongside a notable improvement in net loss and adjusted EBITDA. The company also announced the full market release of three new bunion technologies, expanding its portfolio and reinforcing its position in the market. Key financial metrics showed a reduction in net loss by 18% and a 58% improvement in adjusted EBITDA, reflecting the company’s strategic focus on financial efficiency and growth. Looking ahead, Treace Medical Concepts remains optimistic about its growth trajectory, reaffirming its revenue guidance for 2025 and expecting to achieve breakeven adjusted EBITDA for the full year.