Tactile Systems Technology, Inc.
Tactile Systems Technology, Inc. Fundamental Analysis
Tactile Systems Technology, Inc. (TCMD) shows weak financial fundamentals with a PE ratio of 33.48, profit margin of 5.79%, and ROE of 9.26%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 6.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TCMD's fundamental strength across five key dimensions:
Efficiency Score
WeakTCMD struggles to generate sufficient returns from assets.
Valuation Score
WeakTCMD trades at a premium to fair value.
Growth Score
ModerateTCMD shows steady but slowing expansion.
Financial Health Score
ExcellentTCMD maintains a strong and stable balance sheet.
Profitability Score
WeakTCMD struggles to sustain strong margins.
Key Financial Metrics
Is TCMD Expensive or Cheap?
P/E Ratio
TCMD trades at 33.48 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TCMD's PEG of 3.73 indicates potential overvaluation.
Price to Book
The market values Tactile Systems Technology, Inc. at 2.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.62 times EBITDA. This signals the market has high growth expectations.
How Well Does TCMD Make Money?
Net Profit Margin
For every $100 in sales, Tactile Systems Technology, Inc. keeps $5.79 as profit after all expenses.
Operating Margin
Core operations generate 8.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.26 in profit for every $100 of shareholder equity.
ROA
Tactile Systems Technology, Inc. generates $6.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tactile Systems Technology, Inc. produces operating cash flow of $42.71M, showing steady but balanced cash generation.
Free Cash Flow
Tactile Systems Technology, Inc. generates strong free cash flow of $40.30M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.80 in free cash annually.
FCF Yield
TCMD converts 6.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.73
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How TCMD Stacks Against Its Sector Peers
| Metric | TCMD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.48 | 29.43 | Worse (Expensive) |
| ROE | 9.26% | 800.00% | Weak |
| Net Margin | 5.79% | -20145.00% (disorted) | Weak |
| Debt/Equity | 0.07 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 4.03 | 4.64 | Strong Liquidity |
| ROA | 6.97% | -17936.00% (disorted) | Weak |
TCMD outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tactile Systems Technology, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.47%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
22.45%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
1183.01%
Industry Style: Defensive, Growth, Innovation
High Growth