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MiMedx Group
(NASDAQ:MDXG)
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Rating:67Neutral
Price Target:
$4.00
▼(-7.83% Downside)
Action:Downgraded
Date:10/17/26
MDXG scores as moderately attractive primarily due to strong financial footing (very low leverage and positive cash generation), which provides resilience. The score is held back by expensive valuation (high P/E), only neutral technical momentum, and mixed near-term outlook from the latest call—particularly the sharp Wound franchise decline and reimbursement/collections uncertainty despite management’s expectations for sequential improvement and longer-term strategic upside from the Sanara deal.
Positive Factors
Conservative balance sheet
Very low leverage gives MiMedx financial resilience while it manages operating volatility and pursues growth initiatives. A largely unlevered balance sheet reduces financing pressure, preserves flexibility for investment, and improves the company’s ability to absorb reimbursement or execution challenges.
Negative Factors
Severe wound franchise weakness
The sharp Wound revenue decline demonstrates that reimbursement changes are materially affecting a core business franchise rather than merely creating a brief reporting fluctuation. Persistently lower utilization or pricing could weigh on revenue, customer relationships, and the resources available to fund growth elsewhere.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage gives MiMedx financial resilience while it manages operating volatility and pursues growth initiatives. A largely unlevered balance sheet reduces financing pressure, preserves flexibility for investment, and improves the company’s ability to absorb reimbursement or execution challenges.
Read all positive factors
MiMedx Group (MDXG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$561.18M
Dividend YieldN/A
Average Volume (3M)1.34M
Price to Earnings (P/E)96.3
Beta (1Y)0.39
Revenue Growth-2.36%
EPS Growth-80.69%
CountryUS
Employees808
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)0.04
Shares Outstanding145,760,470
10 Day Avg. Volume1,705,516
30 Day Avg. Volume1,335,450
Financial Highlights & Ratios
PEG Ratio1.49
Price to Book (P/B)3.90
Price to Sales (P/S)2.39
P/FCF Ratio13.71
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue1.27
Enterprise Value/Gross Profit1.61
Enterprise Value/Ebitda19.01
Forecast
1Y Price Target
$7.50Price Target Upside72.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.08
Revenue Forecast (FY)$266.99M
MiMedx Group Business Overview & Revenue Model
Company Description
MiMedx Group, Inc. specializes in creating and supplying allografts derived from placental tissue, serving a diverse range of medical fields. The company employs its unique, patented PURION process to treat human placental tissues, a method crucia...
How the Company Makes Money
MiMedx makes money primarily by selling its biologic wound-care and surgical allograft products to U.S. healthcare customers. The core revenue stream is product revenue generated when clinics, hospitals, physician offices, and other care sites pur...
MiMedx Group Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 03, 2027
Earnings Call Sentiment Neutral
The call balanced clear near-term operational and market challenges—primarily driven by a sharp year-over-year decline in the Wound franchise and reimbursement-driven collection issues—with several sizable strategic positives: a transformational acquisition expected to materially expand addressable market and margins, strong surgical growth, sequential recovery signs, a solid cash position and cost reduction progress. Management emphasized stabilization of wound volumes, improving sequential trends, and an attractive pro forma financial profile for 2027, while acknowledging significant industry-level reimbursement uncertainty and short-term earnings pressure.Positive Updates
Transformational Sanara MedTech Acquisition
Definitive agreement to acquire Sanara MedTech for $35.00 per share; Sanara has >$100M LTM revenue (~$80M from CellerateRX). Transaction expected to close by year-end; unlocks an estimated $4B of new addressable market. Financing secured via a $300M term loan (6-year, SOFR + 6.25%). Company expects combined 2027 revenue well in excess of $400M, at least $20M of annual cost synergies and an adjusted EBITDA margin >20%.
Negative Updates
Severe Wound Revenue Decline
Wound net sales were $25M in Q2, down 61% year-over-year due to Medicare reimbursement changes and market disruption, creating substantial near-term headwinds for the wound franchise.
Read all updates
Q2-2026 Updates
Positive
Negative
Transformational Sanara MedTech Acquisition
Definitive agreement to acquire Sanara MedTech for $35.00 per share; Sanara has >$100M LTM revenue (~$80M from CellerateRX). Transaction expected to close by year-end; unlocks an estimated $4B of new addressable market. Financing secured via a $300M term loan (6-year, SOFR + 6.25%). Company expects combined 2027 revenue well in excess of $400M, at least $20M of annual cost synergies and an adjusted EBITDA margin >20%.
Read all positive updates
Company Guidance
MiMedx reiterated standalone 2026 guidance of $260–$290 million in net sales with adjusted EBITDA approaching breakeven, citing Q2 results of $64 million in net sales (‑35% YoY, +9% sequential; Surgical $39M, +15% YoY; Wound $25M, ‑61% YoY; June the highest month at $24M), an adjusted gross profit margin of ~74% (GAAP gross margin ~69%), Q2 adjusted EBITDA loss of $8M (‑13% of sales), GAAP net loss of $15M (‑$0.10/sh) and adjusted net loss of $7M (‑$0.05/sh). Management expects gross margin to improve into the mid‑70s starting in Q3, adjusted EBITDA to improve sequentially and exit Q4 in the high single digits as a percent of revenue, full‑year sales & marketing of 62–64% of sales, R&D run‑rate of ~$3–3.5M per quarter, a long‑term non‑GAAP tax rate of ~25%, and that a $5M incremental Q2 bad‑debt charge is transitory; quarter‑end net cash was $119M after $13M of buybacks. Assuming the Sanara close in 2026, MiMedx projects the combined company to generate well over $400M in 2027 revenue, at least $20M of annual cost synergies, ≥20% adjusted EBITDA margin and net leverage under 3x adjusted EBITDA, with acquisition financing via a $300M term loan at SOFR + 6.25% and ~4.2M shares to be issued (pro forma shares ≈150M).MiMedx Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 355.17M | 418.63M | 348.88M | 321.48M | 267.84M | 242.02M |
| Gross Profit | 280.05M | 345.62M | 288.81M | 266.84M | 219.53M | 202.39M |
| EBITDA | 23.69M | 82.93M | 65.35M | 40.52M | -10.69M | -1.89M |
| Net Income | 6.24M | 48.58M | 42.42M | 67.44M | -30.20M | -12.30M |
Balance Sheet | ||||||
| Total Assets | 281.00M | 342.65M | 263.92M | 239.05M | 171.43M | 187.93M |
| Cash, Cash Equivalents and Short-Term Investments | 135.84M | 166.12M | 104.42M | 82.00M | 65.95M | 87.08M |
| Total Debt | 1.50M | 22.53M | 24.84M | 48.10M | 52.47M | 53.29M |
| Total Liabilities | 65.00M | 86.11M | 70.81M | 96.33M | 96.92M | 95.35M |
| Stockholders Equity | 216.00M | 256.55M | 193.11M | 142.72M | 74.51M | 92.58M |
Cash Flow | ||||||
| Free Cash Flow | 40.58M | 72.97M | 64.52M | 24.79M | -19.41M | -5.20M |
| Operating Cash Flow | 46.15M | 74.00M | 66.20M | 26.77M | -17.89M | -1.98M |
| Investing Cash Flow | -11.87M | -6.89M | -9.58M | -2.15M | -2.66M | -3.40M |
| Financing Cash Flow | -17.31M | -5.41M | -34.20M | -8.57M | -580.00K | -3.35M |
MiMedx Group Technical Analysis
Negative
4.34
Price Trends
4.52
Negative
4.28
Negative
4.31
Negative
Market Momentum
-0.18
Positive
29.19
Positive
18.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDXG, the sentiment is Negative. The current price of 4.34 is below the 20-day moving average (MA) of 4.45, below the 50-day MA of 4.52, and above the 200-day MA of 4.31, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 29.19 is Positive, neither overbought nor oversold. The STOCH value of 18.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MDXG.
MiMedx Group Risk Analysis
MiMedx Group disclosed 42 risk factors in its most recent earnings report. MiMedx Group 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
MiMedx Group Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $561.18M | 96.25 | 2.61% | ― | -2.36% | -80.69% | |
52 Neutral | $323.95M | -36.41 | -280.41% | ― | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $252.12M | -7.11 | -71.14% | ― | 19.87% | 23.17% | |
47 Neutral | $246.46M | -3.80 | -41.69% | ― | 6280.00% | -212.54% | |
45 Neutral | $333.72M | -2.34 | -56.60% | ― | -100.00% | -49.28% | |
41 Neutral | $706.49M | -3.11 | -134.49% | ― | ― | 28.46% |
* Healthcare Sector Average
MDXG
MiMedx Group
3.85
-3.03
-44.04%
LCTX
Lineage Therap
1.00
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-42.43%
CAPR
Capricor Therapeutics
5.74
-0.44
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ABEO
Abeona Therapeutics
4.31
-0.97
-18.37%
SANA
Sana Biotechnology
2.36
-3.23
-57.78%
TTRX
Turn Therapeutics Inc
10.61
5.36
102.10%
MiMedx Group Corporate Events
M&A TransactionsRegulatory Filings and Compliance
MiMedx Group merger delayed amid extended FTC review
Negative
Oct 16, 2026
MiMedx Group, Inc. and Texas-based Sanara MedTech Inc. are pursuing a merger under which Sanara will become a wholly owned subsidiary of MiMedx through the combination with Mustang Merger Sub, Inc. On October 15, 2026, both companies received a Se...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
MiMedx Group to Acquire Sanara MedTech in Merger
Positive
Jul 29, 2026
On July 29, 2026, MiMedx agreed to acquire Sanara MedTech in a cash-and-stock merger valuing Sanara at $35 per share and about $350 million in enterprise value, a 46% premium to its recent trading levels. Sanara shareholders will receive $33 in ca...
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.