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Tenon Medical, Inc. (TNON)
NASDAQ:TNON
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Tenon Medical, Inc.
(NASDAQ:TNON)
44Neutral
Positive Factors
Growth Strategy
The company’s focus on physician training and expanding surgeon adoption should support long-term procedural growth.
Market Potential
With a significant market opportunity and superior technology, TNON is considered undervalued, supporting a Buy rating.
Product Innovation
The anticipated mid-2025 commercial launch of the new Catamaran SE device could serve as a meaningful growth driver.
Negative Factors
Market Outlook
Unforeseen headwinds in receiving reimbursement from payors have caused a tempering of the 12-month outlook and a lowered price target.
Reimbursement Challenges
Reimbursement uncertainty remains a key risk, leading to lower revenue estimates and a reduced price target.
Revenue Performance
The company's 3Q24 revenue was below expectations due to unforeseen reimbursement headwinds.
Tenon Medical, Inc. (TNON) vs. S&P 500 (SPY)
Market Cap
$7.25M
Dividend YieldN/A
Average Volume (3M)13.02M
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth11.92%
EPS Growth87.83%
CountryUS
Employees27
SectorHealthcare
Sector Strength58
IndustryMedical - Devices
Share Statistics
EPS (TTM)-22.80
Shares Outstanding6,199,965
10 Day Avg. Volume347,433
30 Day Avg. Volume13,016,707
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.49
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.07
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.00Price Target Upside156.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Tenon Medical, Inc. Business Overview & Revenue Model
Company DescriptionTenon Medical, Inc. (TNON) is a medical device company operating in the healthcare sector, primarily focused on developing and commercializing innovative solutions for sacroiliac joint fusion surgery. The company aims to address unmet clinical needs in the treatment of lower back pain caused by sacroiliac joint dysfunction. Its core product, the Catamaran System, is designed to offer a minimally invasive surgical option that enhances patient outcomes and recovery times.
How the Company Makes MoneyTenon Medical, Inc. generates revenue primarily through the sale of its proprietary Catamaran System to hospitals, surgical centers, and healthcare providers. The company capitalizes on its unique product offering by targeting orthopedic and neurosurgeons who specialize in spinal procedures. Revenue is driven by the demand for improved surgical outcomes and the growing awareness of sacroiliac joint dysfunction as a significant contributor to lower back pain. Additionally, Tenon Medical may engage in partnerships or collaborations with healthcare institutions to expand its market reach and increase adoption of its surgical solution. The company's earnings are influenced by its ability to effectively market its products, navigate the regulatory landscape, and maintain relationships with key stakeholders in the medical community.
Tenon Medical, Inc. Financial Statement Overview
Summary
Tenon Medical, Inc. shows strong revenue growth potential but struggles with profitability. While the company benefits from low leverage and a healthy equity ratio, its operations are heavily reliant on external funding due to negative cash flows and income. Improved cost management and achieving operational profitability are crucial for future financial health.Income Statement
Tenon Medical, Inc. has shown significant revenue growth over the years, with a 11.91% increase in 2024. However, the company is still experiencing negative net income, leading to a negative net profit margin. The gross profit margin is 52.23%, indicating potential for profitability if cost control can be improved. The EBIT and EBITDA margins are negative due to high operating expenses relative to revenue.45
Neutral
Balance Sheet
The company's debt-to-equity ratio is low at 0.07, which is favorable and suggests low financial leverage. However, the return on equity is negative due to consistent net losses. The equity ratio is 60.67%, indicating a strong equity position relative to total assets, but the overall financial stability is impacted by recurring losses.40
Negative
Cash Flow
Tenon Medical, Inc.'s operating cash flow remains negative, though there has been an improvement over the previous year. The free cash flow is also negative, but financing cash flow is positive, indicating reliance on external financing to sustain operations. The operating cash flow to net income ratio is not optimal due to ongoing losses.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.28M | 2.93M | 691.00K | 159.80K | 43.82K | Gross Profit |
| 1.71M | 1.24M | -641.00K | 105.03K | 25.56K | EBIT |
| -13.77M | -15.73M | -18.73M | -6.46M | -536.29K | EBITDA |
| -13.77M | -15.53M | -18.27M | -6.35M | -537.52K | Net Income Common Stockholders |
| -13.67M | -15.58M | -19.11M | -7.67M | -753.02K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.54M | 2.43M | 8.57M | 7.32M | 245.63K | Total Assets |
| 9.84M | 6.34M | 11.09M | 9.27M | 390.90K | Total Debt |
| 428.00K | 1.86M | 911.00K | 14.62M | 574.98K | Net Debt |
| -6.11M | -571.00K | -1.22M | 11.70M | 329.34K | Total Liabilities |
| 3.87M | 5.57M | 4.84M | 29.82M | 3.10M | Stockholders Equity |
| 5.97M | 778.00K | 6.25M | -20.55M | -4.42M |
| Cash Flow | Free Cash Flow | |||
| -10.06M | -12.54M | -12.87M | -4.39M | -167.36K | Operating Cash Flow |
| -9.88M | -12.18M | -12.03M | -4.29M | -167.36K | Investing Cash Flow |
| -186.00K | 6.14M | -2.88M | -4.50M | 0.00 | Financing Cash Flow |
| 14.13M | 6.30M | 14.11M | 11.47M | 254.80K |
Tenon Medical, Inc. Technical Analysis
Negative
1.17
Price Trends
1.36
Negative
1.56
Negative
2.77
Negative
Market Momentum
-0.08
Negative
46.28
Neutral
62.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNON, the sentiment is Negative. The current price of 1.17 is above the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.36, and below the 200-day MA of 2.77, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 46.28 is Neutral, neither overbought nor oversold. The STOCH value of 62.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TNON.
Tenon Medical, Inc. Risk Analysis
Tenon Medical, Inc. disclosed 61 risk factors in its most recent earnings report. Tenon Medical, Inc. 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 0 New Risks
Tenon Medical, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $5.36B | 3.88 | -42.93% | 2.87% | 17.85% | 1.45% | |
45 Neutral | $9.81M | ― | -72.70% | ― | 5.05% | 26.13% | |
44 Neutral | $7.25M | ― | -405.19% | ― | 11.92% | 87.83% | |
42 Neutral | $6.97M | ― | -174.07% | ― | 9.90% | 94.56% | |
40 Underperform | $5.64M | ― | -662.74% | ― | ― | -10.29% | |
38 Underperform | $6.43M | ― | -160.04% | ― | -100.00% | 68.26% | |
36 Underperform | $3.40M | ― | -496.27% | ― | -15.09% | -2.50% |
* Healthcare Sector Average
Performance Comparison
TNON
Tenon Medical, Inc.
1.17
-5.63
-82.79%
SINT
Sintx Technologies
2.77
-6.61
-70.47%
BMRA
Biomerica
3.61
-0.87
-19.42%
AEMD
Aethlon Medical
0.40
-0.99
-71.22%
VERO
Venus Concept
2.46
-5.05
-67.24%
AMIX
Autonomix Medical, Inc.
2.00
-59.40
-96.74%
Tenon Medical, Inc. Earnings Call Summary
Earnings Call Date:Mar 20, 2025
(Q4-2024)
| % Change Since: 5.41%|
Next Earnings Date:May 13, 2025
Earnings Call Sentiment Neutral
Tenon Medical demonstrated significant improvements in revenue growth and gross margin for the full year 2024, alongside promising clinical outcomes and a strong cash position. However, challenges in the fourth quarter, including a revenue decline and ongoing reimbursement issues, suggest areas needing attention. Overall, the sentiment is cautiously optimistic with a focus on future growth and overcoming current challenges.Q4-2024 Updates
Positive Updates
Revenue Growth for Full Year 2024
Tenon Medical reported a 12% increase in revenue for the full year 2024, reaching $3.3 million compared to $2.9 million in the prior year.
Improved Gross Margin
Gross margin improved by 10 percentage points to 52% for the full year of 2024, up from 42% in the previous year, driven by increases in revenue per surgical procedure.
Launch of Catamaran SE Platform
The company completed the alpha clinical review of the Catamaran SE platform, a second-generation implant with a smaller profile, with a full commercial launch planned for midyear 2025.
Expansion of Intellectual Property Portfolio
Tenon Medical received three U.S. patents related to the Catamaran portfolio, enhancing their competitive position with innovations in bone in-growth and revision procedures.
Positive Clinical Outcomes from MAINSAIL Study
Interim analysis of the MAINSAIL study showed statistically significant reductions in SI Joint pain, a robust safety profile, and high patient satisfaction, supporting the effectiveness of the Catamaran System.
Strong Cash Position
The company reported cash and cash equivalents of $6.5 million at the end of 2024, up from $2.4 million at the end of 2023, bolstered by a recent $3 million capital raise.
Negative Updates
Revenue Decline in Q4 2024
Tenon Medical experienced a 4.7% revenue decline in the fourth quarter of 2024 compared to the same quarter in the previous year, primarily due to reimbursement preauthorization delays.
Flat Net Loss
The net loss for the fourth quarter of 2024 remained flat at $3.1 million compared to the same period in 2023, with an annual net loss of $13.7 million for 2024.
Challenges with Reimbursement Processes
The company faced headwinds related to reimbursement preauthorization, impacting the number of surgeries performed and leading to delays in the approval process.
Company Guidance
During the Tenon Medical Fourth Quarter and Full Year 2024 Financial Results and Corporate Update Conference Call, the company reported a revenue growth of 12% for the full year, reaching $3.3 million, despite a 4.7% decline in fourth-quarter revenue to $770,000 due to reimbursement preauthorization issues. Gross margin improved by 10 percentage points to 52% over the year. Operating expenses decreased slightly to $3.5 million in Q4, contributing to a net loss that remained flat at $3.1 million for the quarter. The company's cash position strengthened, with $6.5 million in cash and cash equivalents as of December 31, 2024, bolstered by a recent $3 million capital raise. The company also highlighted the development of its second-generation Catamaran SE platform and the ongoing MAINSAIL clinical study, which demonstrated positive interim results in reducing SI Joint pain and disability. Looking forward, Tenon plans to focus on expanding its commercial infrastructure and completing the MAINSAIL study.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.