Treace Medical Concepts (TMCI) AI Stock Analysis

• Market Cap: $452.95M
• Dividend Yield: N/A
• Average Volume (3M): 375.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.99
• Revenue Growth: 7.67%
• EPS Growth: 23.79%
• Country: US
• Employees: 477
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Devices
• EPS (TTM): -0.28
• Shares Outstanding: 63,173,126
• 10 Day Avg. Volume: 335,020
• 30 Day Avg. Volume: 375,606
• 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: 0.82
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 2.17
• Enterprise Value/Ebitda: -10.76
• 1Y Price Target: $8.58
• Price Target Upside: 19.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 57 Neutral
• Price Target: $8.00 ▲(11.58% Upside)

Treace Medical Concepts' stock score is primarily influenced by its strong technical momentum and positive earnings call outlook, despite ongoing financial challenges. The company's robust revenue growth and strategic initiatives are promising, but profitability and cash flow issues weigh on the overall score. Valuation remains a concern due to negative earnings, but the market's bullish sentiment provides a supportive backdrop.

Positive Factors

Market Expansion

The company's expansion into a broader range of bunion-corrective technologies allows it to penetrate the remaining 70% of the market it previously couldn't access.

Product Portfolio

Physicians at the event spoke about the key features and advantages of TMCI's product portfolio and the ability to address a broader segment of the bunion market.

Negative Factors

Competitive Pressure

There is a concern that TMCI’s growth may stall if competitors launch similar products.

Growth Rate Comparison

TMCI is expected to grow at an 8% 3-year CAGR, which is below the 18% 3-year CAGR growth rate of its peers, leading to a valuation discount.

Treace Medical Concepts Business Overview & Revenue Model

Company Description

Treace Medical Concepts (TMCI) is a medical device company that specializes in the design, development, and commercialization of innovative surgical solutions for foot and ankle orthopedic procedures. The company is primarily focused on addressing unmet clinical needs in the treatment of bunions, leveraging its proprietary Lapiplasty 3D Bunion Correction System, which aims to improve surgical outcomes and patient recovery times.

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 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: Positive
• Last Price: 7.17
• 50DMA: Positive
• 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 TMCI, the sentiment is Positive. The current price of 7.17 is above the 20-day moving average (MA) of 7.10, above the 50-day MA of 6.33, and below the 200-day MA of 7.40, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 59.79 is Neutral, neither overbought nor oversold. The STOCH value of 32.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$299.16M	21.62	7.64%	―	6.15%	-54.24%
SIBN	62 Neutral	$705.35M	―	-14.18%	―	22.93%	43.83%
TMCI	57 Neutral	$452.95M	―	-46.89%	―	7.67%	23.79%
BVS	56 Neutral	$587.02M	―	-0.10%	―	5.08%	99.38%
OFIX	54 Neutral	$580.57M	―	-24.63%	―	4.84%	0.85%
KIDS	52 Neutral	$519.27M	―	-11.49%	―	26.08%	-63.67%
Sector *	51 Neutral	$7.95B	-0.40	-41.67%	2.21%	22.29%	-1.85%

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.