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Tenon Medical, Inc. (TNON)
:TNON
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Tenon Medical, Inc.
(NASDAQ:TNON)
Rating:47Neutral
Price Target:
$1.00
▼(-0.99%Downside)
Positive Factors
Market Opportunity
The new indication significantly increases the company’s total addressable market (TAM), and could potentially accelerate adoption due to the expanded versatility of the device.
Regulatory Approval
TNON's Catamaran SI Joint Fusion System received an expanded indication from the FDA for use in augmenting thoracolumbar fusion.
Valuation
With a significant market opportunity and superior technology, TNON is considered undervalued, supporting a Buy rating.
Negative Factors
Reimbursement Challenges
Revenue fell slightly short of expectations due to ongoing reimbursement preapproval challenges for Sacroiliac Joint fusion surgery.
Reimbursement Uncertainty
Reimbursement uncertainty remains a key risk, leading to lower revenue estimates and a reduced price target.
Revenue Growth
TNON’s revenue growth was relatively flat year-over-year due to continued reimbursement related headwinds.
Tenon Medical, Inc. (TNON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.74M
Dividend YieldN/A
Average Volume (3M)166.44K
Price to Earnings (P/E)―
Beta (1Y)1.69
Revenue Growth2.18%
EPS Growth91.55%
CountryUS
Employees27
SectorHealthcare
Sector Strength40
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.01
Shares Outstanding7,589,970
10 Day Avg. Volume173,348
30 Day Avg. Volume166,443
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.42
Price to Sales (P/S)0.00
P/FCF Ratio-0.82
Enterprise Value/Market Cap-0.22
Enterprise Value/Revenue-7.89
Enterprise Value/Gross Profit-389.13
Enterprise Value/Ebitda0.29
Forecast
1Y Price Target
$2.75Price Target Upside172.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Tenon Medical, Inc. Business Overview & Revenue Model
Company DescriptionTenon Medical, Inc., a medical device company, develops surgical implant systems to optimize sacroiliac joint fixation/fusion surgery and corresponding outcomes. It sells The CATAMARAN SIJ Fusion System that includes instruments and implants designed to prepare and fixate the SI-Joint for fusion in the United States and Puerto Rico. The company was founded in 2012 and is based in Los Gatos, California.
How the Company Makes MoneyTenon Medical, Inc. generates revenue primarily through the sale of its proprietary surgical implant systems to hospitals and surgical centers. The company markets its products to orthopedic surgeons and healthcare providers who perform sacroiliac joint fusion procedures. Revenue is driven by the adoption of their technology in clinical practices, supported by marketing and educational efforts to demonstrate the efficacy and benefits of their systems. Additionally, Tenon Medical may engage in strategic partnerships or collaborations with healthcare institutions to expand their market reach and enhance product distribution, although specific partnerships are not detailed here.
Tenon Medical, Inc. Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -18.55%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant advancements in FDA approvals and intellectual property, alongside positive clinical outcomes and a solid cash position. However, revenue growth was minimal, and the company continues to operate at a loss with a decreased gross profit margin. While there are strong future growth potentials, current financial metrics present challenges.Q1-2025 Updates
Positive Updates
FDA Clearance for New Indication
The FDA cleared the Catamaran SI Joint Fusion System for an extended indication for use in augmenting thoracolumbar fusion. This expands the platform's versatility and opens a previously untapped market, potentially increasing adoption.
Strong Intellectual Property Portfolio
Received two European patents in the first quarter related to the Catamaran SI joint fixation device. The portfolio now includes 12 issued US and foreign patents, along with 31 pending applications.
Positive Clinical Outcomes
Interim analysis from the MAINSAIL study showed statistically significant reduction in SI joint pain and disability at six months, with a robust safety profile and high patient satisfaction.
Significant Cash Infusion
Received $7.1 million in gross proceeds from equity financing, contributing to a cash balance of $10.3 million, providing a strong runway for future growth initiatives.
Negative Updates
Flat Revenue Growth
Revenue increased by only 1% from $719,000 in Q1 2024 to $726,000 in Q1 2025, partially due to reimbursement pre-authorization headwinds.
Decreased Gross Profit Margin
Gross profit decreased to $323,000 or 44% of revenue, compared to $470,000 or 65% of revenue in the comparable year-ago quarter.
Continued Net Loss
Net loss remained at $3.6 million for the first quarter of 2025, the same as in the first quarter of 2024, with expectations of continued losses in the future.
Company Guidance
During the Tenon Medical First Quarter 2025 Financial Results and Corporate Update Conference Call, CEO Steve Foster and CFO Kevin Williamson provided guidance on the company's future prospects. The first quarter of 2025 saw a 1% increase in revenue to $726,000 compared to the same period in 2024, despite facing reimbursement pre-authorization challenges. Gross profit for the quarter was $323,000, representing 44% of revenue, a decline from 65% in the previous year due to variations in gross margin percentages. Operating expenses remained flat at $4 million, while the net loss was consistent with the previous year at $3.6 million. The company reported a cash balance of $10.3 million, bolstered by $7.1 million in gross proceeds from equity financing, with no outstanding debt. Looking forward, Tenon Medical anticipates growth driven by the upcoming commercial launch of the Catamaran SE platform and the second interim analysis of the MAINSAIL study. The company is focusing on commercial expansion, training programs, and completing the MAINSAIL trial, while expecting incremental revenue growth as reimbursement issues resolve and the sales force expands.Tenon Medical, Inc. Financial Statement Overview
Summary
Tenon Medical, Inc. shows strong revenue growth potential in the medical devices industry, but profitability remains a significant challenge. The company benefits from low leverage and a healthy equity ratio, yet operations rely heavily 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 |
| EBITDA | -12.98M | -15.53M | -18.27M | -6.35M | -537.52K |
| Net Income | -13.67M | -15.58M | -19.11M | -7.67M | -753.02K |
Balance Sheet | |||||
| Total Assets | 9.84M | 6.34M | 11.09M | 9.27M | 390.90K |
| Cash, Cash Equivalents and Short-Term Investments | 6.54M | 2.43M | 8.57M | 7.32M | 245.63K |
| Total Debt | 428.00K | 1.86M | 911.00K | 14.62M | 574.98K |
| 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
1.01
Price Trends
1.02
Negative
1.17
Negative
1.71
Negative
Market Momentum
<0.01
Positive
46.93
Neutral
18.02
Positive
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 1.01 is below the 20-day moving average (MA) of 1.06, below the 50-day MA of 1.02, and below the 200-day MA of 1.71, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 18.02 is Positive, 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 3 New Risks
1.
The price of our common stock may be volatile, and you may be unable to resell your shares at or above the price paid. Q4, 2023
2.
If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline. Q4, 2023
3.
We have not paid dividends in the past and do not expect to pay dividends in the future, and any return on investment may be limited to the value of our stock. Q4, 2023
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 | $7.47B | 0.53 | -62.70% | 2.38% | 14.92% | 0.82% | |
49 Neutral | $8.76M | ― | -72.70% | ― | 5.05% | 26.13% | |
48 Neutral | $4.54M | ― | -496.27% | ― | -16.79% | -3.69% | |
47 Neutral | $7.74M | ― | -210.97% | ― | 2.18% | 91.55% | |
42 Neutral | $6.67M | ― | -155.20% | ― | 9.90% | 94.56% | |
40 Underperform | $3.53M | ― | -145.09% | ― | ― | -10.29% | |
38 Underperform | $3.10M | ― | -245.88% | ― | -100.00% | 68.26% |
* Healthcare Sector Average
Performance Comparison
TNON
Tenon Medical, Inc.
1.01
-3.57
-77.95%
SINT
Sintx Technologies
2.50
-2.33
-48.24%
BMRA
Biomerica
3.24
0.84
35.00%
AEMD
Aethlon Medical
1.19
-1.47
-55.26%
VERO
Venus Concept
2.52
-4.94
-66.22%
AMIX
Autonomix Medical, Inc.
1.44
-19.16
-93.01%
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.