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Treace Medical Concepts, Inc. (TMCI)
:TMCI
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Treace Medical Concepts
(NASDAQ:TMCI)
54Neutral
Positive Factors
Earnings
Treace reported Q4 results slightly higher than estimates and consensus, indicating strong performance.
Innovation
Early feedback on Treace’s Nanoplasty and Percuplasty solutions is universally positive, attracting previously reluctant surgeons.
Negative Factors
Growth Concerns
Lapiplasty growth has stalled, raising concerns about the company's growth profile in this area.
Treace Medical Concepts (TMCI) vs. S&P 500 (SPY)
Market Cap
$519.11M
Dividend YieldN/A
Average Volume (3M)442.43K
Price to Earnings (P/E)―
Beta (1Y)2.21
Revenue Growth11.89%
EPS Growth-10.22%
CountryUS
Employees516
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-0.90
Shares Outstanding62,618,725
10 Day Avg. Volume500,805
30 Day Avg. Volume442,426
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.48
Price to Cash Flow (P/CF)-30.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.58Price Target Upside39.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Treace Medical Concepts Business Overview & Revenue Model
Company DescriptionTreace Medical Concepts Inc is a commercial-stage orthopaedic medical device company. It is focused on advancing the standard of care for the surgical management of bunion deformities. The company's patented Lapiplasty 3D Bunion Correction procedure is designed to reproducibly correct all planes of the bunion deformity and address the root cause of the bunion, while allowing patients to return to their active lives quickly.
How the Company Makes MoneyTreace Medical Concepts primarily generates revenue through the sale of its proprietary medical devices, particularly the Lapiplasty 3D Bunion Correction System. The company sells these devices directly to hospitals, surgical centers, and healthcare providers. Revenue is driven by the adoption of their products by surgeons and healthcare facilities, which are looking for effective solutions to treat bunion deformities with improved patient outcomes. Treace also invests in educational programs and training for surgeons to increase the adoption of their techniques. The company may benefit from partnerships with healthcare providers and distributors that expand the reach and awareness of its products in the medical community.
Treace Medical Concepts Financial Statement Overview
Summary
Treace Medical Concepts demonstrates solid revenue growth, but persistent operating losses and negative profit margins highlight significant challenges in cost management. The balance sheet reflects manageable leverage, but declining equity and liquidity issues from negative cash flow raise concerns about financial stability and the need for strategic improvement.Income Statement
Treace Medical Concepts shows solid revenue growth with a 11.9% increase from 2023 to 2024, and a consistent upward trajectory over the years. However, the company is currently operating at a loss with a negative net income, resulting in negative profit margins: Gross Profit Margin at 80.4% and Net Profit Margin at -26.6% for 2024. This indicates strong revenue generation capability but challenges in cost management and profitability.65
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 0.61, suggesting manageable leverage. However, the company has been experiencing declining equity, from $93 million in 2021 to $113 million in 2024, highlighting potential concerns about financial stability. The equity ratio stands at 52%, indicating a fair balance between equity and assets, but the company must improve its net income to enhance shareholder value.55
Neutral
Cash Flow
The cash flow statement reveals challenges, with an operating cash flow of $0 in 2024 and consistent negative free cash flow in previous years. The absence of free cash flow growth and the negative operating cash flow to net income ratio indicate liquidity issues and a need for improved cash management practices.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 209.36M | 187.12M | 141.84M | 94.42M | 57.37M | Gross Profit |
| 168.26M | 151.94M | 114.31M | 76.59M | 44.90M | EBIT |
| -55.69M | -51.43M | -34.84M | -16.51M | -891.00K | EBITDA |
| -42.07M | -39.01M | -34.84M | -15.81M | 2.06M | Net Income Common Stockholders |
| -55.74M | -49.53M | -47.30M | -24.61M | -6.45M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 75.68M | 123.20M | 81.25M | 105.83M | 18.08M | Total Assets |
| 217.09M | 251.91M | 159.02M | 140.82M | 41.81M | Total Debt |
| 69.65M | 70.30M | 68.59M | 29.36M | 30.98M | Net Debt |
| 58.30M | 57.32M | 49.12M | -76.47M | 12.90M | Total Liabilities |
| 104.20M | 113.97M | 98.50M | 47.75M | 41.03M | Stockholders Equity |
| 112.89M | 137.94M | 60.53M | 93.07M | 776.00K |
| Cash Flow | Free Cash Flow | |||
| -48.76M | -46.03M | -45.49M | -19.90M | -5.56M | Operating Cash Flow |
| -37.17M | -34.58M | -30.65M | -17.19M | -4.49M | Investing Cash Flow |
| 35.38M | -81.30M | -76.52M | -2.71M | -1.07M | Financing Cash Flow |
| 160.00K | 109.38M | 20.81M | 107.65M | 11.50M |
Treace Medical Concepts Technical Analysis
Negative
8.29
Price Trends
9.05
Negative
8.02
Positive
7.08
Positive
Market Momentum
-0.29
Positive
34.74
Neutral
7.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMCI, the sentiment is Negative. The current price of 8.29 is below the 20-day moving average (MA) of 9.25, below the 50-day MA of 9.05, and above the 200-day MA of 7.08, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 34.74 is Neutral, neither overbought nor oversold. The STOCH value of 7.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMCI.
Treace Medical Concepts Risk Analysis
Treace Medical Concepts disclosed 67 risk factors in its most recent earnings report. Treace Medical Concepts 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
Treace Medical Concepts Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $17.23B | 42.39 | 43.03% | ― | 22.07% | 101.95% | |
68 Neutral | $11.76B | 95.78 | 2.52% | ― | 60.62% | -35.88% | |
56 Neutral | $1.19B | ― | -33.30% | ― | 25.74% | 57.18% | |
54 Neutral | $519.11M | ― | -44.45% | ― | 11.89% | -10.22% | |
52 Neutral | $1.85B | ― | -0.44% | ― | 4.47% | -110.70% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% |
* Healthcare Sector Average
Performance Comparison
TMCI
Treace Medical Concepts
8.18
-4.12
-33.50%
PODD
Insulet
248.38
72.84
41.49%
IART
Integra Lifesciences
22.24
-13.54
-37.84%
GMED
Globus Medical
71.30
15.95
28.82%
TNDM
Tandem Diabetes Care
18.77
-9.86
-34.44%
Treace Medical Concepts Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -9.20% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for Treace Medical, with strong revenue growth and successful product launches being key highlights. Although there were some financial lowlights such as a decrease in gross margin and a net loss for the year, the company's strategic initiatives and improvements in adjusted EBITDA suggest a promising trajectory.Highlights
Fourth Quarter Revenue Growth
Treace Medical reported fourth quarter revenue of $68.7 million, a 10.4% increase over the same period in 2023, reaching the top-end of their preliminary results.
Full-Year Revenue Increase
The company reported full-year 2024 revenue of $209.4 million, a 12% increase compared to 2023, achieving the top-end of their guidance.
Successful New Product Launches
Treace Medical successfully introduced new technologies such as Nanoplasty, MicroQuad SpeedPlate, Percuplasty, and IntelliGuide PSI, with positive early feedback from both new and existing surgeon customers.
Significant Adjusted EBITDA Improvement
The company reported a 322% improvement in adjusted EBITDA for the fourth quarter 2024, achieving $11.1 million compared to $2.6 million in 2023.
Expansion of Product Portfolio
Treace Medical expanded its product portfolio with innovative solutions targeting all four classes of bunions, including less invasive options for procedures and the addition of SpeedMTP for arthritic great toe joints.
Lowlights
Gross Margin Decrease
Gross margin for the fourth quarter 2024 decreased to 80.7% from 81.6% in the same period in 2023, driven by a product mix shift and increased inventory provisions.
Net Loss for the Year
Treace Medical reported a net loss of $55.7 million for the full year 2024, compared to a net loss of $49.5 million in 2023.
Company Guidance
During the fourth quarter 2024 earnings call, Treace Medical Concepts provided guidance for the upcoming year, projecting full-year 2025 revenue in the range of $224 million to $230 million, reflecting an expected growth of 7% to 10% over 2024 revenue. The company anticipates achieving break-even adjusted EBITDA for the year. Fourth quarter 2024 revenue was reported at $68.7 million, a 10.4% increase from the previous year, and full-year 2024 revenue reached $209.4 million, marking a 12% increase over 2023. The gross margin for the fourth quarter was 80.7%, slightly down from 81.6% in the same period of 2023. The company also highlighted the expansion of its product portfolio, including new minimally invasive osteotomy systems, expected to contribute to growth primarily in the latter half of 2025. Treace Medical emphasized its strategy to penetrate the broader market of 4.4 million Americans seeking medical attention for bunions, leveraging its comprehensive suite of specialized solutions.Treace Medical Concepts Corporate Events
Business Operations and StrategyFinancial Disclosures
Treace Medical Concepts Reports Strong 2024 Revenue Growth
Positive
Jan 13, 2025
Treace Medical Concepts reported preliminary, unaudited revenue results for the fourth quarter and full year 2024, showing a 10% increase in fourth-quarter revenue and a 12% annual growth. The company added approximately 280 new active surgeons in 2024, expanding its surgeon base by 10%. These results position Treace for continued growth in 2025, supported by new product launches and enhanced market penetration.
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.