TransMedics Group (TMDX) AI Stock Analysis

• Market Cap: $4.45B
• Dividend Yield: N/A
• Average Volume (3M): 883.34K
• Price to Earnings (P/E): 67.5
• Beta (1Y): 1.28
• Revenue Growth: 48.09%
• EPS Growth: 2410.18%
• Country: US
• Employees: 728
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.92
• Shares Outstanding: 34,090,355
• 10 Day Avg. Volume: 896,749
• 30 Day Avg. Volume: 883,344
• 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: 1.25
• Enterprise Value/Revenue: 10.45
• Enterprise Value/Gross Profit: 17.48
• Enterprise Value/Ebitda: 49.61
• 1Y Price Target: $144.50
• Price Target Upside: 10.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 78 Outperform
• Price Target: $149.00 ▲(14.16% Upside)

TransMedics Group's strong financial performance and positive earnings call are the primary drivers of its high score. The company's robust revenue growth, profitability, and strategic initiatives underscore its potential for sustained growth. However, high valuation and technical indicators suggesting overbought conditions present risks. Investors should monitor leverage levels and market dynamics closely.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand for TransMedics' products, enhancing its market position and supporting long-term financial stability.

Cash Generation

Strong cash generation and a healthy cash reserve provide financial flexibility for future investments and strategic initiatives, reinforcing business resilience.

FDA Approval

FDA approval for new products can drive future growth by expanding the product portfolio and enhancing the company's competitive edge in the medical device sector.

Negative Factors

Increasing Liabilities

Rising liabilities could pressure the company's financial health, limiting its ability to invest in growth opportunities and manage economic downturns effectively.

Seasonality Impact

Seasonal fluctuations may lead to inconsistent financial performance, complicating long-term planning and potentially affecting investor confidence.

Competitive Market Noise

Competitive pressures and market noise can hinder market share growth and create challenges in maintaining a strong brand image, affecting long-term strategic positioning.

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 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 Financial Statement Overview

Summary

TransMedics Group shows strong financial performance with impressive revenue growth and operational profitability, especially in the TTM period. The balance sheet is stable with manageable leverage, although liabilities have increased. Cash flow management has improved significantly, 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.

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.

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.

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	-7.70M	-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

• Technical Analysis Sentiment: Positive
• Last Price: 130.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 130.52 is above the 20-day moving average (MA) of 116.34, above the 50-day MA of 116.19, and above the 200-day MA of 101.19, indicating a bullish trend. The MACD of 2.45 indicates Negative momentum. The RSI at 68.89 is Neutral, neither overbought nor oversold. The STOCH value of 84.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TMDX.

TransMedics Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMDX	―	$4.45B	67.49	28.21%	―	48.09%	2410.18%
INSP	―	$2.29B	45.30	8.07%	―	22.05%	785.52%
ITGR	―	$2.55B	29.39	5.18%	―	7.81%	-26.32%
LIVN	―	$3.00B	-13.94	-17.87%	―	8.57%	-1154.64%
ATEC	―	$2.38B	-14.61	-376.89%	―	26.27%	15.58%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GKOS	―	$4.28B	-45.67	-12.98%	―	26.70%	48.19%

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.

The most recent analyst rating on (TMDX) stock is a Buy with a $150.00 price target. To see the full list of analyst forecasts on TransMedics Group stock, see the TMDX Stock Forecast page.

TransMedics Group Q2 2025 Earnings Call Highlights

TransMedics Group’s recent earnings call for Q2 2025 exuded a predominantly positive sentiment, underscored by impressive financial performance and strategic advancements. The company reported record revenue growth and a robust cash position, signaling strong operational health. Despite facing challenges in the lung perfusion market and anticipating some seasonal impacts in the upcoming quarter, the overall outlook remains optimistic, with strengths and positive developments outweighing the hurdles.

TransMedics Reports Strong Q2 2025 Financial Results

TransMedics Group, Inc., headquartered in Andover, Massachusetts, is a leading medical technology company specializing in portable extracorporeal warm perfusion and assessment of donor organs for transplantation, aiming to improve organ quality and increase donor organ utilization for end-stage heart, lung, and liver failure treatments.