TransMedics Group (TMDX) AI Stock Analysis

• Market Cap: $4.37B
• Dividend Yield: N/A
• Average Volume (3M): 768.63K
• Price to Earnings (P/E): 95.0
• Beta (1Y): 1.47
• Revenue Growth: 64.43%
• EPS Growth: N/A
• Country: US
• Employees: 728
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Devices
• EPS (TTM): 0.70
• Shares Outstanding: 33,833,790
• 10 Day Avg. Volume: 722,875
• 30 Day Avg. Volume: 768,625
• PEG Ratio: 2.18
• Price to Book (P/B): 9.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.60
• Enterprise Value/Market Cap: 0.39
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 5.82
• Enterprise Value/Ebitda: 7.43
• 1Y Price Target: $135.17
• Price Target Upside: 8.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: $136.00 ▲(8.66%Upside)

The overall score reflects strong financial performance and positive momentum from recent earnings, offset by valuation concerns due to a high P/E ratio. Key strengths include robust revenue growth and strategic advancements, while financial risks from high debt levels and negative free cash flow require attention.

Positive Factors

Operational Expansion

The recent rise in TMDX job postings, especially for pilots, is seen as a positive sign.

Revenue Growth

Solid growth trends in liver and lung transplants positively impact TransMedics Group's revenue performance.

Negative Factors

Market Competition

OrganOx had priced its device at a discount to TMDX; whether this price differential continues given the new approval remains to be seen.

Revenue Streams

Heart transplants have experienced a decline, which could negatively impact certain revenue streams for TransMedics Group.

TransMedics Group Business Overview & Revenue Model

Company Description

TransMedics Group, Inc. is a medical technology company that specializes in developing advanced organ transplant systems. The company is renowned for its Organ Care System (OCS), which is designed to improve outcomes for organ transplant patients by enabling enhanced preservation, assessment, and transportation of donor organs. Operating primarily within the healthcare and medical technology sectors, TransMedics aims to address the limitations of traditional cold storage methods and expand the availability of viable organs for transplantation.

How the Company Makes Money

TransMedics makes money primarily through the sale and leasing of its Organ Care System (OCS) devices and the associated single-use disposable products required for each organ transplant procedure. The company generates revenue from hospitals and transplant centers that purchase or lease the OCS for heart, lung, and liver transplants. Additionally, TransMedics may benefit from partnerships with healthcare institutions and research organizations that utilize its technology for clinical studies and trials. The company also engages in strategic collaborations to expand the adoption and application of its systems in various markets, thereby contributing to its revenue growth.

TransMedics Group Financial Statement Overview

Summary

TransMedics Group demonstrates impressive revenue growth and improving margins, positioning it favorably in the medical devices industry. However, high debt levels and negative free cash flow necessitate careful management and strategic focus on cash generation.

Income Statement

The company shows strong revenue growth from $25.6M in 2020 to $488.2M in TTM (Trailing-Twelve-Months), indicating a robust growth trajectory. Gross profit margin improved significantly, demonstrating operational efficiency. EBIT and EBITDA margins have turned positive, reflecting improved profitability. However, net profit margins remain modest, highlighting room for further profitability improvements.

Balance Sheet

The balance sheet is strengthened by increasing stockholders' equity, reaching $266.3M in TTM from $103.9M in 2020. The debt-to-equity ratio indicates a moderate leverage level, but the company has maintained a healthy equity ratio. However, the high total debt of $518.4M could pose a risk if earnings do not continue to grow.

Cash Flow

Free cash flow remains negative despite improvements in operating cash flow, indicating cash generation challenges. The operating cash flow to net income ratio suggests adequate cash conversion, but high capital expenditures impact free cash flow. Continued growth in operating cash flow is essential to support investments and reduce reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	488.23M	441.54M	241.62M	93.46M	30.26M	25.64M
Gross Profit	290.25M	262.08M	154.09M	65.27M	21.16M	16.64M
EBITDA	82.66M	69.95M	-7.60M	-28.96M	-38.49M	-23.15M
Net Income	48.95M	35.46M	-25.03M	-36.23M	-44.22M	-28.75M
Balance Sheet
Total Assets	837.53M	804.08M	706.05M	277.15M	134.89M	152.03M
Cash, Cash Equivalents and Short-Term Investments	310.14M	336.65M	394.81M	201.18M	92.45M	125.64M
Total Debt	518.41M	518.29M	515.95M	67.56M	8.60M	34.66M
Total Liabilities	571.22M	575.47M	568.85M	89.77M	67.04M	48.13M
Stockholders Equity	266.31M	228.60M	137.20M	187.38M	67.85M	103.89M
Cash Flow
Free Cash Flow	-63.23M	-80.94M	-192.09M	-57.72M	-32.38M	-30.72M
Operating Cash Flow	49.38M	48.80M	-13.03M	-45.82M	-28.86M	-30.27M
Investing Cash Flow	-112.17M	-129.30M	-193.95M	54.51M	29.27M	-41.60M
Financing Cash Flow	22.72M	22.87M	400.42M	167.93M	1.39M	75.55M

TransMedics Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 125.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMDX, the sentiment is Neutral. The current price of 125.16 is below the 20-day moving average (MA) of 133.51, above the 50-day MA of 121.03, and above the 200-day MA of 94.86, indicating a neutral trend. The MACD of 1.42 indicates Positive momentum. The RSI at 46.00 is Neutral, neither overbought nor oversold. The STOCH value of 37.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TMDX.

TransMedics Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPT	73 Outperform	$1.92B	30.57	19.36%	―	34.43%	31.90%
UFPT	73 Outperform	$1.92B	30.57	19.36%	―	34.43%	31.90%
TMDX	69 Neutral	$4.37B	94.95	22.99%	―	64.43%	―
AORT	56 Neutral	$1.31B	―	-7.25%	―	5.94%	-115.82%
AORT	56 Neutral	$1.31B	―	-7.25%	―	5.94%	-115.82%
LIVN	55 Neutral	$2.52B	30.62	-19.69%	―	7.97%	-592.40%
LIVN	55 Neutral	$2.52B	30.62	-19.69%	―	7.97%	-592.40%
PRCT	54 Neutral	$3.15B	―	-27.62%	―	59.36%	19.87%
PRCT	54 Neutral	$3.15B	―	-27.62%	―	59.36%	19.87%
Sector *	52 Neutral	$7.53B	0.32	-61.76%	2.28%	16.60%	1.56%
IART	42 Neutral	$1.05B	―	-1.85%	―	6.19%	-174.69%
IART	42 Neutral	$1.05B	―	-1.85%	―	6.19%	-174.69%

TransMedics Group Corporate Events

TransMedics Group Holds 2025 Annual Shareholders Meeting

On May 22, 2025, TransMedics Group, Inc. held its 2025 Annual Meeting of Shareholders, where several key proposals were voted on. The shareholders elected eight directors to serve on the Board until the 2026 Annual Meeting, approved the compensation for the company’s executive officers, and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are expected to impact the company’s governance and financial oversight positively.

The most recent analyst rating on (TMDX) stock is a Buy with a $109.00 price target. To see the full list of analyst forecasts on TransMedics Group stock, see the TMDX Stock Forecast page.