Education
About Us
Working with TipRanks
Follow Us
Treace Medical Concepts (TMCI)
NASDAQ:TMCI
Top Page
Treace Medical Concepts
(NASDAQ:TMCI)
Rating:48Neutral
Price Target:
$7.00
▲( 14.75% Upside)
Positive Factors
Financial Performance
Expense management initiatives resulted in a reduction in operating expenses, contributing to a positive performance below the topline.
Growth Potential
The foot and ankle orthopedics market is a $5B+ global market growing at a 7%-8% CAGR, offering significant opportunities for attention.
Product Innovation
Early feedback on Treace’s Nanoplasty and Percuplasty solutions is universally positive, attracting previously reluctant surgeons.
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 (TMCI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$383.72M
Dividend YieldN/A
Average Volume (3M)490.32K
Price to Earnings (P/E)―
Beta (1Y)1.86
Revenue Growth7.54%
EPS Growth4.28%
CountryUS
Employees477
SectorHealthcare
Sector Strength42
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.25
Shares Outstanding62,904,953
10 Day Avg. Volume677,468
30 Day Avg. Volume490,325
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.35Price Target Upside69.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Treace Medical Concepts Business Overview & Revenue Model
Company DescriptionTreace 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 MoneyTreace Medical Concepts primarily generates revenue through the sale of its proprietary medical devices, particularly the Lapiplasty 3D Bunion Correction System. The company sells these devices directly to hospitals, surgical centers, and healthcare providers. Revenue is driven by the adoption of their products by surgeons and healthcare facilities, which are looking for effective solutions to treat bunion deformities with improved patient outcomes. Treace also invests in educational programs and training for surgeons to increase the adoption of their techniques. The company may benefit from partnerships with healthcare providers and distributors that expand the reach and awareness of its products in the medical community.
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.65
Positive
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.55
Neutral
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.40
Negative
| 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 | EBIT |
| -55.69M | -51.43M | -34.84M | -16.51M | -891.00K | EBITDA |
| -42.07M | -39.01M | -34.84M | -15.81M | 2.06M | Net Income Common Stockholders |
| -55.74M | -49.53M | -47.30M | -24.61M | -6.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 75.68M | 123.20M | 81.25M | 105.83M | 18.08M | Total Assets |
| 217.09M | 251.91M | 159.02M | 140.82M | 41.81M | Total Debt |
| 69.65M | 70.30M | 68.59M | 29.36M | 30.98M | Net Debt |
| 58.30M | 57.32M | 49.12M | -76.47M | 12.90M | 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
Negative
6.10
Price Trends
7.29
Negative
8.18
Negative
7.26
Negative
Market Momentum
-0.29
Positive
29.90
Positive
8.82
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 6.1 is below the 20-day moving average (MA) of 6.90, below the 50-day MA of 7.29, and below the 200-day MA of 7.26, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 29.90 is Positive, neither overbought nor oversold. The STOCH value of 8.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMCI.
Treace Medical Concepts Risk Analysis
Treace Medical Concepts disclosed 66 risk factors in its most recent earnings report. Treace Medical Concepts reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
If larger competitors utilize dominant market positions in unrelated service lines to induce customers to buy their bunion correction systems instead of our products through rebate payments and/or volume-based pricing agreements, our sales may be adversely affected. Q4, 2024
2.
If we are unable to successfully market and sell our existing and new products, our revenues and market growth may not increase or may otherwise be adversely affected. We may be unable to grow our revenue or earnings as anticipated, which may have a material adverse effect on our results of operations. Q4, 2024
Treace Medical Concepts Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $784.96M | ― | -15.96% | ― | 22.60% | 41.26% | |
69 Neutral | $314.21M | 13.38 | 72.68% | 3.58% | -4.15% | -17.17% | |
66 Neutral | $515.94M | ― | -11.33% | ― | 31.28% | -81.86% | |
56 Neutral | $312.08M | ― | -7.46% | ― | -3.31% | -199.23% | |
53 Neutral | $5.14B | 3.03 | -43.89% | 2.83% | 16.75% | -0.06% | |
48 Neutral | $383.72M | ― | -45.73% | ― | 7.54% | 4.28% | |
47 Neutral | $440.00M | ― | -27.82% | ― | 5.85% | -8.92% |
* Healthcare Sector Average
Performance Comparison
TMCI
Treace Medical Concepts
5.88
0.72
13.95%
OFIX
Orthofix
11.10
-3.79
-25.45%
NRC
National Research
13.59
-15.97
-54.03%
VREX
Varex Imaging
7.52
-7.27
-49.15%
KIDS
OrthoPediatrics
20.83
-11.71
-35.99%
SIBN
SI-Bone
18.38
4.83
35.65%
Treace Medical Concepts Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -19.10%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced view with both positive advancements in product development and market leadership, alongside continuous financial losses and modest growth expectations. While the company is expanding its portfolio and improving EBITDA, challenges persist in achieving profitability and maintaining high gross margins.Q1-2025 Updates
Positive Updates
Revenue Growth Achieved
Treace Medical Concepts reported first-quarter revenue of $52.6 million, marking a 3% increase over the same period in 2024. Adjusting for one fewer selling day, the growth was 4.5%.
Positive Feedback on New Systems
The company received positive feedback from surgeons for their three new bunion systems, which are expected to significantly impact business in the latter half of the year.
Successful Adjusted EBITDA Improvement
Adjusted EBITDA loss improved by 54%, from $8.3 million in Q1 2024 to $3.8 million in Q1 2025, marking the third consecutive quarter of improvement.
Strong Customer Base and Market Leadership
Treace Medical Concepts has established a strong customer base of over 3,100 surgeons and is the dollar share leader in the U.S. bunion market.
R&D and Product Pipeline Expansion
The company is expanding its portfolio with new technologies, including the IntelliGuide PSI and SpeedPlate MicroQuad implant, and is planning to release the next-generation lapoplasty platform.
Negative Updates
Gross Margin Slight Decrease
Gross margin saw a slight decrease to 79.7% in Q1 2025 from 80.2% in Q1 2024.
Continued Net Loss
Net loss for Q1 2025 was $15.9 million, or $0.25 per share, compared to a net loss of $18.7 million, or $0.30 per share, in Q1 2024.
Revenue Guidance Reflects Modest Growth
The full-year 2025 revenue guidance of $224 million to $230 million represents growth of only 7% to 10% over 2024, indicating moderate expectations.
Cash and Equivalents Decrease
Cash, equivalents, and marketable securities were $70.1 million as of March 31, 2025, down from $75.7 million as of December 31, 2024.
Company Guidance
During the first quarter 2025 earnings conference call, Treace Medical Concepts, Inc. reiterated its revenue guidance for the year, expecting between $224 million and $230 million, reflecting a 7% to 10% growth over the previous year. The company's first quarter revenue was $52.6 million, showing a 3% increase compared to the same quarter in 2024, or 4.5% when adjusted for one less selling day. The gross margin slightly decreased to 79.7% from 80.2% in the prior year. The net loss was reduced to $15.9 million, or $0.25 per share, from $18.7 million, or $0.30 per share, in 2024. The company also reported an adjusted EBITDA loss of $3.8 million, a 54% improvement from last year's $8.3 million. Total liquidity stood at $98.6 million, with cash, equivalents, and marketable securities at $70.1 million as of March 31, 2025. The company anticipates its most significant growth to occur in the fourth quarter, driven by the timing of new product launches and seasonal deductibles.Treace Medical Concepts Corporate Events
Executive/Board ChangesShareholder Meetings
Treace Medical Elects Directors at Annual Meeting
Neutral
May 21, 2025
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.
Executive/Board ChangesShareholder Meetings
Treace Medical Concepts CEO to Become Board Chairman
Neutral
Apr 7, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.