TELA Bio (TELA) AI Stock Analysis

• Market Cap: $48.85M
• Dividend Yield: N/A
• Average Volume (3M): 329.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 18.56%
• EPS Growth: 32.65%
• Country: US
• Employees: 209
• Sector: Healthcare
• Sector Strength: 71
• Industry: Medical - Devices
• EPS (TTM): -1.39
• Shares Outstanding: 39,551,098
• 10 Day Avg. Volume: 672,247
• 30 Day Avg. Volume: 329,164
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.84
• Price to Cash Flow (P/CF): -1.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.00
• Price Target Upside: 383.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

TELA Bio's overall stock score reflects strong revenue growth and a solid financial structure, albeit with ongoing profitability and cash flow challenges. The technical analysis indicates bearish momentum with significant oversold conditions, while valuation remains challenging due to negative earnings. The positive guidance from the earnings call provides a hopeful outlook for future growth, offsetting some of the immediate concerns.

Positive Factors

Market Opportunity

TELA Bio is expected to take market share in the $1.5B hernia mesh market, translating to growth and profitability.

Product Differentiation

OviTex's biocompatibility and safety features, strength and handling benefits, and its lower-cost profile versus biologic competitors, has potential to be a disruptive device in both the hernia repair and plastic reconstructive industries.

Product Launch

New products in both PRS and Hernia are anticipated to contribute to growth reacceleration.

Negative Factors

Financial Performance

Despite controlling some costs, the operating loss was higher than anticipated, suggesting financial challenges.

Sales Force Turnover

Sales force turnover has created risks for achieving future sales targets, as new representatives take time to become productive.

Stock Valuation

The company may need another round of financing to fund operations, which could negatively impact the stock.

TELA Bio Business Overview & Revenue Model

Company Description

TELA Bio is a medical technology company focused on the design, development, and commercialization of innovative soft tissue reconstruction solutions. Operating primarily within the healthcare and biomedical sectors, TELA Bio offers a portfolio of products that utilize its proprietary tissue reinforcement technology, OviTex, designed for a range of applications including hernia repair and abdominal wall reconstruction.

How the Company Makes Money

TELA Bio generates revenue primarily through the sale of its OviTex products to hospitals, surgical centers, and healthcare providers. The company operates within the medical device industry, where it benefits from the growing demand for advanced tissue reinforcement and reconstruction solutions. Key revenue streams include direct sales to healthcare facilities and strategic partnerships with medical distributors that expand the reach of their products. TELA Bio's earnings are also influenced by factors such as the adoption rate of innovative surgical technologies, ongoing research and development efforts, and the company's ability to navigate regulatory requirements in various markets.

TELA Bio Financial Statement Overview

Summary

TELA Bio's financial performance is challenged by consistent operating losses and a negative equity position, despite revenue growth. The gross profit margin shows operational efficiency, but high leverage and cash flow deficits remain significant risks.

Income Statement

TELA Bio shows a consistent revenue growth with a significant jump from $18.21M in 2020 to $68.65M in TTM 2024. Despite the revenue growth, the company remains unprofitable with negative EBIT and net income margins across all periods. The gross profit margin stands at 68.31% for TTM 2024, indicating decent operational efficiency, but heavy operating losses continue to weigh down profitability.

Balance Sheet

The balance sheet reveals a negative stockholders' equity of -$6.27M in TTM 2024, reflecting financial instability. The debt-to-equity ratio is inapplicable due to negative equity, but the high leverage is a risk factor. The equity ratio is negative, further highlighting the capital structure challenges. The asset base has contracted since 2020, accompanied by growing liabilities.

Cash Flow

TELA Bio's cash flow situation is concerning, with persistent negative operating and free cash flows, despite some improvement in free cash flow from -$46.04M in TTM 2024 compared to prior periods. The operating cash flow to net income ratio is close to 1, reflecting strong correlation but indicating operational cash burn. Financing activities have been a key source of cash, highlighting reliance on external financing.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
68.65M	58.45M	41.42M	29.46M	18.21M	15.45M
	Gross Profit
46.89M	40.11M	27.04M	18.81M	11.23M	9.27M
	EBIT
-45.62M	-44.08M	-39.01M	-29.45M	-25.27M	-19.16M
	EBITDA
-35.26M	-40.63M	-39.06M	-29.14M	-24.70M	-18.23M
	Net Income Common Stockholders
-41.52M	-46.66M	-44.34M	-36.11M	-31.88M	-25.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
17.28M	46.73M	42.02M	43.93M	74.39M	54.59M
	Total Assets
27.23M	78.05M	67.86M	62.54M	86.46M	67.92M
	Total Debt
29.73M	41.08M	39.92M	31.49M	30.83M	30.24M
	Net Debt
12.46M	-5.65M	-2.10M	-12.44M	-43.57M	-15.06M
	Total Liabilities
165.09M	59.17M	53.55M	42.45M	37.43M	36.96M
	Stockholders Equity
-137.86M	18.88M	14.30M	20.10M	49.03M	30.96M
Cash Flow		Free Cash Flow
-46.05M	-41.47M	-42.62M	-31.06M	-24.62M	-28.22M
	Operating Cash Flow
-45.12M	-40.86M	-40.75M	-30.43M	-24.46M	-25.52M
	Investing Cash Flow
4.45M	-599.00K	-1.87M	-627.00K	9.12M	-11.98M
	Financing Cash Flow
171.00K	46.27M	40.85M	585.00K	44.41M	65.53M

TELA Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TELA, the sentiment is Negative. The current price of 1.24 is below the 20-day moving average (MA) of 2.05, below the 50-day MA of 2.42, and below the 200-day MA of 3.11, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 20.81 is Positive, neither overbought nor oversold. The STOCH value of 10.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TELA.

TELA Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TELA	54 Neutral	$48.85M	―	-159.87%	―	18.56%	32.65%
OFIX	51 Neutral	$626.70M	―	-22.87%	―	7.08%	20.45%
ANIK	49 Neutral	$214.20M	―	-20.21%	―	-8.92%	31.98%
IRIX	49 Neutral	$16.62M	―	-153.37%	―	-6.17%	8.27%
Sector *	49 Neutral	$6.85B	0.81	-52.91%	2.50%	19.94%	1.20%
ATEC	46 Neutral	$1.28B	―	-291.71%	―	26.81%	26.47%
SRDX	43 Neutral	$439.60M	―	-12.32%	―	-9.23%	-359.07%

TELA Bio Corporate Events

TELA Bio Projects Strong Revenue Growth for 2025

On March 20, 2025, TELA Bio reported its financial results for the fourth quarter and full year of 2024, showing a 19% revenue growth for the year, driven by increased demand for its OviTex and OviTex PRS products. Despite some disruptions affecting the fourth quarter, the company remains optimistic about capturing additional market share and restoring growth. TELA Bio also provided a revenue guidance for 2025, projecting growth of 23% to 27% over 2024, while maintaining operating expenses at the same level as the previous year.