Treace Medical Concepts (TMCI) AI Stock Analysis

• Market Cap: $420.73M
• Dividend Yield: N/A
• Average Volume (3M): 337.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• Revenue Growth: 7.67%
• EPS Growth: 23.79%
• Country: US
• Employees: 477
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.28
• Shares Outstanding: 63,173,126
• 10 Day Avg. Volume: 295,901
• 30 Day Avg. Volume: 337,079
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 2.17
• Enterprise Value/Ebitda: -10.76
• 1Y Price Target: $8.29
• Price Target Upside: 24.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 44 Neutral
• Price Target: $6.50 ▼(-2.40% Downside)

Treace Medical Concepts' overall stock score is primarily impacted by its financial performance, which is hindered by ongoing losses and negative cash flows. While the company shows strong revenue growth and some positive technical indicators, the negative valuation metrics and profitability challenges are significant concerns. The earnings call provided some optimism for future growth, but the current financial and valuation issues weigh heavily on the stock score.

Positive Factors

Product Portfolio Expansion

The expansion of TMCI's product portfolio with new systems like Nanoplasty and SpeedMTP enhances its market position and addresses a broader range of surgical needs, potentially driving long-term revenue growth and strengthening its competitive edge in the orthopedic device market.

Revenue Growth

Consistent revenue growth indicates successful market penetration and product adoption, which can lead to increased market share and financial stability over the long term. This trend supports the company's strategic initiatives and future expansion plans.

Strong Cash Management

Effective cash management reduces financial risk and enhances operational flexibility, allowing TMCI to invest in growth opportunities and innovation. This strengthens the company's ability to sustain operations and pursue strategic initiatives without excessive reliance on external financing.

Negative Factors

Ongoing Net Loss

Persistent net losses indicate challenges in achieving profitability, which can strain resources and limit the company's ability to reinvest in growth. Addressing these losses is crucial for long-term financial health and investor confidence.

Negative Cash Flows

Negative cash flows can hinder TMCI's ability to fund operations and growth initiatives, potentially leading to liquidity issues. Resolving these challenges is essential for ensuring the company's financial sustainability and reducing reliance on external funding.

Slight Decline in Gross Margin

A decline in gross margin, even if slight, can impact profitability and indicates potential cost pressures. Maintaining or improving margins is crucial for sustaining competitive advantage and ensuring long-term financial performance.

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 strong revenue growth but struggles with profitability, as indicated by negative margins and cash flow challenges. The high Debt-to-Equity Ratio and ongoing net losses highlight potential financial instability.

Income Statement

Treace Medical Concepts has demonstrated consistent revenue growth over the years, with a Revenue Growth Rate of 11.9% from 2023 to 2024. However, the company struggles with profitability, reflected in negative margins across Gross Profit Margin, Net Profit Margin, EBIT Margin, and EBITDA Margin. This indicates continuous operating and net losses despite revenue increases.

Balance Sheet

The company's balance sheet shows a moderate equity position with an Equity Ratio of 51.2% as of TTM. The Debt-to-Equity Ratio is relatively high at 0.66, indicating reliance on debt financing, which could pose risks if not managed well. The Return on Equity is negative, reflecting the ongoing net losses impacting shareholder value.

Cash Flow

Treace Medical Concepts exhibits negative Free Cash Flow and Operating Cash Flow, with a notable decline in Free Cash Flow. The Operating Cash Flow to Net Income Ratio is negative, further highlighting cash flow challenges. The company needs to address its cash burn to improve financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	213.75M	209.36M	187.12M	141.84M	94.42M	57.37M
Gross Profit	171.25M	168.26M	151.94M	114.31M	76.59M	44.90M
EBITDA	-34.49M	-42.07M	-39.01M	-36.28M	-15.81M	2.06M
Net Income	-49.18M	-55.74M	-49.53M	-42.81M	-20.55M	-3.67M
Balance Sheet
Total Assets	206.44M	217.09M	251.91M	159.02M	140.82M	41.81M
Cash, Cash Equivalents and Short-Term Investments	69.29M	75.68M	123.20M	81.25M	105.83M	18.08M
Total Debt	70.09M	69.65M	70.30M	68.59M	29.36M	30.98M
Total Liabilities	108.83M	104.20M	113.97M	98.50M	47.75M	41.03M
Stockholders Equity	97.61M	112.89M	137.94M	60.53M	93.07M	776.00K
Cash Flow
Free Cash Flow	-29.15M	-48.76M	-46.03M	-45.49M	-19.90M	-5.56M
Operating Cash Flow	-14.90M	-37.17M	-34.58M	-30.65M	-17.19M	-4.49M
Investing Cash Flow	4.03M	35.38M	-81.30M	-76.52M	-2.71M	-1.07M
Financing Cash Flow	739.00K	160.00K	109.38M	20.81M	107.65M	11.50M

Treace Medical Concepts Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6.66 is below the 20-day moving average (MA) of 7.08, above the 50-day MA of 6.64, and below the 200-day MA of 7.32, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.86 is Neutral, neither overbought nor oversold. The STOCH value of 15.61 is Positive, 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	79 Outperform	307.19M	22.14	7.75%	―	6.15%	-54.24%
SIBN	63 Neutral	606.13M	-24.96	-18.51%	―	22.93%	43.83%
OFIX	54 Neutral	564.37M	-4.50	-26.99%	―	4.84%	0.85%
BVS	53 Neutral	550.64M	-900.00	-0.10%	―	5.08%	99.38%
KIDS	52 Neutral	458.35M	-10.17	-11.75%	―	26.08%	-63.67%
TMCI	44 Neutral	$420.73M	―	-46.89%	―	7.67%	23.79%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.