TransMedics Group (TMDX) AI Stock Analysis

• Market Cap: $4.61B
• Dividend Yield: N/A
• Average Volume (3M): 935.31K
• Price to Earnings (P/E): 53.0
• Beta (1Y): 1.06
• Revenue Growth: 41.20%
• EPS Growth: 173.53%
• Country: US
• Employees: 728
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.66
• Shares Outstanding: 34,174,324
• 10 Day Avg. Volume: 661,755
• 30 Day Avg. Volume: 935,313
• PEG Ratio: -0.24
• Price to Book (P/B): 9.06
• Price to Sales (P/S): 4.69
• P/FCF Ratio: -25.60
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 8.17
• Enterprise Value/Gross Profit: 13.55
• Enterprise Value/Ebitda: 34.97
• 1Y Price Target: $147.00
• Price Target Upside: 12.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 2.59
• Revenue Forecast (FY): $601.02M

• Rating: 77 Outperform
• Price Target: $155.00 ▲(18.13% Upside)

TransMedics Group's overall stock score reflects strong financial performance and positive earnings call sentiment, supported by robust revenue growth and strategic initiatives. The technical analysis indicates a bullish trend, although the high P/E ratio suggests the stock may be overvalued. The absence of a dividend yield is a minor drawback. The company's strategic acquisition for organ transport further supports its growth trajectory.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for TransMedics' Organ Care Systems, supporting long-term business expansion and market penetration.

Cash Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and cushioning against market volatility.

International Expansion

International expansion into Europe positions TransMedics to capture new markets, driving future revenue growth and global presence.

Negative Factors

Debt Levels

Although leverage management has improved, high debt levels could constrain financial flexibility and increase risk during downturns.

Seasonal Slowdown

Seasonal slowdowns in transplant volumes can lead to revenue fluctuations, impacting predictability and planning capabilities.

Gross Margin Fluctuations

Fluctuating gross margins can affect profitability and indicate potential cost management challenges, impacting long-term financial health.

TransMedics Group Business Overview & Revenue Model

Company Description

TransMedics Group, Inc., a commercial-stage medical technology company, engages in transforming organ transplant therapy for end-stage organ failure patients in the United States and internationally. The company offers Organ Care System (OCS), a portable organ perfusion, optimization, and monitoring system that utilizes its proprietary and customized technology to replicate near-physiologic conditions for donor organs outside of the human body. Its Organ Care System includes OCS LUNG for the preservation of standard criteria donor lungs for double-lung transplantation; OCS Heart, a technology for extracorporeal perfusion and preservation of donor hearts; and OCS Liver for the preservation of donor livers. The company was founded in 1998 and is headquartered in Andover, Massachusetts.

How the Company Makes Money

TransMedics generates revenue primarily through the sale and rental of its Organ Care Systems and related services. The company earns money through the direct sale of OCS devices to hospitals and transplant centers, as well as through leasing agreements that allow medical facilities to utilize the technology on a per-case basis. Additionally, TMDX may derive revenue from the sale of consumables and accessories used in conjunction with its devices. Significant partnerships with transplant centers, hospitals, and healthcare organizations enhance its reach and capability, contributing to its revenue streams by facilitating more organ transplants and expanding the adoption of its technology.

TransMedics Group Financial Statement Overview

Summary

TransMedics Group exhibits strong financial health with significant improvements in revenue growth, profitability, and cash flow generation. The company has demonstrated strong revenue growth with a 6.6% increase in the TTM period, supported by a solid gross profit margin of 59.8%. The net profit margin improved significantly to 13.5% from 8.0% in the previous year. Cash flow performance is robust, with a remarkable 595.3% growth in free cash flow. However, leverage remains a consideration with a relatively high debt-to-equity ratio.

Income Statement

TransMedics Group has demonstrated strong revenue growth with a 6.6% increase in the TTM period, supported by a solid gross profit margin of 59.8%. The net profit margin improved significantly to 13.5% from 8.0% in the previous year, indicating enhanced profitability. EBIT and EBITDA margins also showed positive trends, reflecting operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved from 2.27 to 1.63, indicating better leverage management, though it remains relatively high. Return on equity has increased to 28.0%, showcasing strong profitability relative to equity. However, the equity ratio remains moderate, suggesting a balanced asset structure.

Cash Flow

TransMedics Group's cash flow performance is robust, with a remarkable 595.3% growth in free cash flow. The operating cash flow to net income ratio of 2.04 indicates strong cash generation relative to earnings. The free cash flow to net income ratio has improved, reflecting better cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	566.35M	441.54M	241.62M	93.46M	30.26M	25.64M
Gross Profit	341.40M	262.08M	154.09M	65.27M	21.16M	16.64M
EBITDA	132.27M	69.95M	-7.70M	-28.96M	-38.49M	-23.15M
Net Income	91.77M	35.46M	-25.03M	-36.23M	-44.22M	-28.75M
Balance Sheet
Total Assets	946.03M	804.08M	706.05M	277.15M	134.89M	152.03M
Cash, Cash Equivalents and Short-Term Investments	466.17M	336.65M	394.81M	201.18M	92.45M	125.64M
Total Debt	519.35M	518.29M	515.95M	67.56M	43.80M	34.66M
Total Liabilities	590.83M	575.47M	568.85M	89.77M	67.04M	48.13M
Stockholders Equity	355.20M	228.60M	137.20M	187.38M	67.85M	103.89M
Cash Flow
Free Cash Flow	120.65M	-80.94M	-192.09M	-57.72M	-32.38M	-30.72M
Operating Cash Flow	177.99M	48.80M	-13.03M	-45.82M	-28.86M	-30.27M
Investing Cash Flow	-57.34M	-129.30M	-193.95M	54.51M	29.27M	-41.60M
Financing Cash Flow	14.94M	22.87M	400.42M	167.93M	1.39M	75.55M

TransMedics Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 131.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 131.21 is below the 20-day moving average (MA) of 133.26, above the 50-day MA of 125.91, and above the 200-day MA of 111.47, indicating a neutral trend. The MACD of 2.52 indicates Positive momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 6.30 is Positive, 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
TMDX	77 Outperform	$4.61B	53.00	32.48%	―	41.20%	173.53%
INSP	72 Outperform	$4.08B	96.07	6.54%	―	16.81%	34.90%
ITGR	65 Neutral	$2.52B	30.29	5.18%	―	7.81%	-26.32%
LIVN	63 Neutral	$3.39B	―	-17.63%	―	8.97%	-1024.86%
GKOS	61 Neutral	$6.14B	―	-12.19%	―	30.38%	47.64%
ATEC	57 Neutral	$3.07B	―	-540.40%	―	27.11%	17.66%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

TransMedics Group Corporate Events

TransMedics Group Acquires Aircraft for Organ Transport

On October 3, 2025, TransMedics, Inc., a subsidiary of TransMedics Group, acquired a fixed-wing aircraft from Teaghlach Aviation, LLC for approximately $14.5 million. This acquisition is part of a series of transactions to build a fleet of 22 aircraft, aimed at enhancing the company’s capabilities in transporting donor organs for its National OCS Program.