TransMedics Group, Inc.
TransMedics Group, Inc. Fundamental Analysis
TransMedics Group, Inc. (TMDX) shows moderate financial fundamentals with a PE ratio of 50.09, profit margin of 16.20%, and ROE of 31.42%. The company generates $0.6B in annual revenue with strong year-over-year growth of 82.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze TMDX's fundamental strength across five key dimensions:
Efficiency Score
WeakTMDX struggles to generate sufficient returns from assets.
Valuation Score
ModerateTMDX shows balanced valuation metrics.
Growth Score
ModerateTMDX shows steady but slowing expansion.
Financial Health Score
ModerateTMDX shows balanced financial health with some risks.
Profitability Score
ExcellentTMDX achieves industry-leading margins.
Key Financial Metrics
Is TMDX Expensive or Cheap?
P/E Ratio
TMDX trades at 50.09 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TMDX's PEG of 1.83 indicates fair valuation.
Price to Book
The market values TransMedics Group, Inc. at 12.94 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.41 times EBITDA. This signals the market has high growth expectations.
How Well Does TMDX Make Money?
Net Profit Margin
For every $100 in sales, TransMedics Group, Inc. keeps $16.20 as profit after all expenses.
Operating Margin
Core operations generate 16.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.42 in profit for every $100 of shareholder equity.
ROA
TransMedics Group, Inc. generates $9.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TransMedics Group, Inc. generates strong operating cash flow of $178.31M, reflecting robust business health.
Free Cash Flow
TransMedics Group, Inc. generates strong free cash flow of $120.87M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.54 in free cash annually.
FCF Yield
TMDX converts 2.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
50.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
12.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How TMDX Stacks Against Its Sector Peers
| Metric | TMDX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 50.09 | 29.43 | Worse (Expensive) |
| ROE | 31.42% | 800.00% | Weak |
| Net Margin | 16.20% | -20145.00% (disorted) | Strong |
| Debt/Equity | 1.46 | 0.30 | Weak (High Leverage) |
| Current Ratio | 7.69 | 4.64 | Strong Liquidity |
| ROA | 9.70% | -17936.00% (disorted) | Weak |
TMDX outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TransMedics Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
699.63%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
145.19%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
164.62%
Industry Style: Defensive, Growth, Innovation
High Growth