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TransMedics Group Inc (TMDX)
NASDAQ:TMDX
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TransMedics Group
(NASDAQ:TMDX)
Rating:74Outperform
Price Target:
$131.00
▲(14.35% Upside)
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong market demand for TransMedics' products, supporting long-term business expansion and financial stability.
Cash Generation
Robust cash reserves enhance TransMedics' ability to invest in R&D, expand operations, and weather economic fluctuations, ensuring long-term sustainability.
FDA Approval
FDA approval for new products can drive future revenue growth and strengthen competitive positioning in the medical device market.
Negative Factors
Rising Liabilities
Increasing liabilities could strain financial resources and limit flexibility, impacting long-term operational capabilities and growth potential.
Seasonality Impact
Seasonal fluctuations can disrupt revenue consistency, affecting short-term financial performance and potentially complicating long-term strategic planning.
Competitive Market Noise
Competitive pressures and market noise can challenge market share and customer perception, potentially impacting growth and profitability over time.
TransMedics Group (TMDX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.99B
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)59.2
Beta (1Y)1.22
Revenue Growth48.09%
EPS Growth2410.18%
CountryUS
Employees728
SectorHealthcare
Sector Strength47
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.92
Shares Outstanding34,090,355
10 Day Avg. Volume1,187,054
30 Day Avg. Volume1,172,846
Financial Highlights & Ratios
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 Cap1.39
Enterprise Value/Revenue10.45
Enterprise Value/Gross Profit17.48
Enterprise Value/Ebitda49.61
Forecast
1Y Price Target
$141.00Price Target Upside23.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
TransMedics Group Business Overview & Revenue Model
Company DescriptionTransMedics 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 MoneyTransMedics generates revenue primarily through the sale of its Organ Care Systems and related disposable products used in the organ preservation and transplantation process. The company earns revenue by leasing the OCS devices to hospitals and transplant centers, which includes a fee for each organ transported using the system. Additionally, TMDX benefits from recurring revenues through the sale of disposables that accompany the use of the OCS, such as perfusion kits and other single-use components. Strategic partnerships with hospitals, transplant programs, and organ procurement organizations also contribute to the company’s growth and revenue, as they expand the network of facilities adopting TransMedics' innovative technology.
TransMedics Group Key Performance Indicators (KPIs)
Any
Revenue by Organ
Details revenue generated from different organ transplant solutions, indicating which areas are most lucrative and where there might be potential for expansion or increased market share.
Details revenue generated from different organ transplant solutions, indicating which areas are most lucrative and where there might be potential for expansion or increased market share.
Data provided by:
Main Street Data
Main Street DataTransMedics Group Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant revenue and profit growth, successful FDA approvals, and raised guidance. However, there were challenges including a decline in OUS revenue and anticipated seasonality impacts, alongside addressing competitive noise. Overall, the positive highlights significantly outweighed the lowlights.Q2-2025 Updates
Positive Updates
Record Revenue Growth
Total revenue for 2Q 2025 was $157.4 million, representing approximately 38% growth year-over-year and approximately 10% sequential growth from 1Q 2025.
Strong Operating Profit and Cash Generation
Operating profit of approximately $36.6 million in 2Q, representing more than 23% of total revenue, and strong cash generation with over $400 million in cash at the end of 2Q.
Growth in Transplant Logistics Revenue
Transplant logistics service revenue for 2Q was $29.8 million, representing 56% year-over-year and 14% sequential growth.
FDA Conditional Approval for OCS Lung IDE
Received FDA conditional approval for the OCS Lung IDE in July, with plans to begin trial initiation activities soon.
Raised Full Year 2025 Revenue Guidance
Raised full year 2025 revenue guidance to between $585 million and $605 million, representing approximately 35% growth over full year 2024.
Negative Updates
Decline in OUS Revenue
OUS revenue was $4 million, down 12% from Q2 of 2024, though up 2% sequentially.
Seasonality Impact on Performance
Expected minor and transient seasonality in Q3 performance, similar to the previous year, which could impact sequential growth.
Challenges with Competitive Commentary and Market Noise
Addressed recent market confusion and noise from competitive commentary, particularly concerning lung transplantation in the U.S.
Company Guidance
During the TransMedics second quarter 2025 earnings call, the company provided a robust set of financial and operational metrics that underscored their strong performance and future growth strategies. The company reported total revenue of $157.4 million for the quarter, representing approximately 38% growth year-over-year and about 10% sequential growth from the first quarter of 2025. Gross margin remained steady at 61.4%, similar to the previous quarter, while operating profit increased to $36.6 million, up from $27.4 million in the prior quarter. The company also highlighted a significant addition of approximately $90 million to its balance sheet, ending the quarter with over $400 million in cash. TransMedics raised its full-year 2025 revenue guidance to between $585 million and $605 million, reflecting approximately 35% growth over 2024 at the midpoint. The company also discussed its strategic initiatives, including achieving 10,000 U.S. NOP transplants by 2028, exploring international expansion, and advancing clinical programs for its next-gen OCS Heart and Lung platforms. Despite expected minor seasonal fluctuations in the third quarter, TransMedics remains focused on sustaining its upward momentum and expanding its market presence.TransMedics Group Financial Statement Overview
Summary
TransMedics Group demonstrates strong financial performance with impressive revenue growth and improved operational profitability in the TTM period. The balance sheet is stable with manageable leverage, although liabilities have increased. Cash flow management has significantly improved, reflecting efficient capital use. The company is well-positioned for potential growth but should monitor its leverage levels.Income Statement
TransMedics Group has demonstrated a strong revenue growth trajectory with a significant increase in total revenue from $93.46M in 2022 to $531.29M in the TTM (Trailing-Twelve-Months) period. Gross profit margin improved to 59.8% in TTM, indicating efficient cost management. Net profit margin stands at 13.5% in TTM, reflecting enhanced profitability. However, the company faced a negative EBIT margin in past years, indicating volatility, which is mitigated in the latest TTM results.85
Very Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 1.44 in TTM, suggesting a balanced approach to leverage. The return on equity (ROE) improved significantly to 22.5% in TTM, driven by profitability gains. The equity ratio is 35.7%, showcasing a solid equity base. The company has maintained sufficient cash reserves, yet the total liabilities have increased, posing potential risks.78
Positive
Cash Flow
TransMedics Group has shown a positive shift in operating cash flow to $115.27M in TTM from a negative position in previous years. Free cash flow turned positive, marking a substantial improvement in cash flow management. The operating cash flow to net income ratio is 1.61, indicating strong cash conversion efficiency. Although capital expenditures are significant, the overall cash flow profile is robust.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 531.29M | 441.54M | 241.62M | 93.46M | 30.26M | 25.64M |
| Gross Profit | 317.68M | 262.08M | 154.09M | 65.27M | 21.16M | 16.64M |
| EBITDA | 111.94M | 69.95M | -7.60M | -28.96M | -38.49M | -23.15M |
| Net Income | 71.66M | 35.46M | -25.03M | -36.23M | -44.22M | -28.75M |
Balance Sheet | ||||||
| Total Assets | 890.52M | 804.08M | 706.05M | 277.15M | 134.89M | 152.03M |
| Cash, Cash Equivalents and Short-Term Investments | 400.57M | 336.65M | 394.81M | 201.18M | 92.45M | 125.64M |
| Total Debt | 518.82M | 518.29M | 515.95M | 67.56M | 8.60M | 34.66M |
| Total Liabilities | 572.42M | 575.47M | 568.85M | 89.77M | 67.04M | 48.13M |
| Stockholders Equity | 318.10M | 228.60M | 137.20M | 187.38M | 67.85M | 103.89M |
Cash Flow | ||||||
| Free Cash Flow | 17.35M | -80.94M | -192.09M | -57.72M | -32.38M | -30.72M |
| Operating Cash Flow | 115.27M | 48.80M | -13.03M | -45.82M | -28.86M | -30.27M |
| Investing Cash Flow | -97.48M | -129.30M | -193.95M | 54.51M | 29.27M | -41.60M |
| Financing Cash Flow | 19.16M | 22.87M | 400.42M | 167.93M | 1.39M | 75.55M |
TransMedics Group Technical Analysis
Positive
114.56
Price Trends
116.43
Negative
118.02
Negative
94.03
Positive
Market Momentum
-2.48
Negative
49.97
Neutral
66.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMDX, the sentiment is Positive. The current price of 114.56 is below the 20-day moving average (MA) of 114.77, below the 50-day MA of 116.43, and above the 200-day MA of 94.03, indicating a neutral trend. The MACD of -2.48 indicates Negative momentum. The RSI at 49.97 is Neutral, neither overbought nor oversold. The STOCH value of 66.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TMDX.
TransMedics Group Risk Analysis
TransMedics Group disclosed 71 risk factors in its most recent earnings report. TransMedics Group reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TransMedics Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.99B | 59.24 | 28.21% | ― | 48.09% | 2410.18% | |
65 Neutral | $3.65B | 44.75 | 5.15% | ― | 7.21% | -23.29% | |
61 Neutral | $3.07B | 30.62 | -17.87% | ― | 8.57% | -1154.64% | |
58 Neutral | $2.45B | 46.37 | 8.07% | ― | 22.05% | 785.52% | |
58 Neutral | $2.31B | ― | -376.89% | ― | 26.27% | 15.58% | |
52 Neutral | $5.02B | ― | -12.98% | ― | 26.70% | 48.19% | |
51 Neutral | $7.92B | -0.36 | -43.38% | 2.24% | 22.38% | -2.16% |
* Healthcare Sector Average
Performance Comparison
TMDX
TransMedics Group
114.56
-36.65
-24.24%
ATEC
Alphatec Holdings
15.26
9.35
158.21%
ITGR
Integer Holdings
101.34
-26.53
-20.75%
GKOS
Glaukos
82.76
-41.51
-33.40%
LIVN
LivaNova
56.22
7.43
15.23%
INSP
Inspire Medical Systems
80.05
-127.88
-61.50%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.