EDAP TMS (EDAP) AI Stock Analysis

• Market Cap: $83.01M
• Dividend Yield: N/A
• Average Volume (3M): 217.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: 11.26%
• EPS Growth: -14.21%
• Country: US
• Employees: 310
• Sector: Healthcare
• Sector Strength: 57
• Industry: Medical - Devices
• EPS (TTM): -0.57
• Shares Outstanding: 37,103,780
• 10 Day Avg. Volume: 81,110
• 30 Day Avg. Volume: 217,174
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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: $8.50
• Price Target Upside: 282.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

EDAP TMS demonstrates solid revenue growth potential, particularly in its HIFU segment, supported by positive earnings call sentiment. However, issues such as negative profitability, cash flow challenges, and rising financial leverage present significant risks. The technical analysis shows upward momentum, but long-term indicators remain bearish. Valuation is unattractive due to a negative P/E ratio and absence of dividends.

Positive Factors

Market Expansion

Expansion of indications could lay path for long-term growth.

Revenue Growth

EDAP reported HIFU-related revenue of €4.5M in 3Q24, a 50% YoY increase from €3.0M in 3Q23.

Strategic Focus

EDAP's plan to increase focus on higher-growth and -margin HIFU business should support consolidated sales growth and margin longer-term.

Negative Factors

Competitive and Financial Risks

There is a potential need for capital, risk from intensifying prostate cancer tissue ablation competition, and risk from EU tariffs.

Rating Downgrade

Analyst lowers the rating from Buy to Hold, seeing downside to consensus estimates.

Regulatory Risks

Analyst does not incorporate sales from endometriosis or BPH applications due to regulatory and timeline uncertainty.

EDAP TMS Business Overview & Revenue Model

Company Description

EDAP TMS S.A., together with its subsidiaries, develops, produces, markets, distributes, and maintains a portfolio of minimally invasive medical devices for the treatment of urological diseases in Asia, France, the United States, and internationally. It operates in three segments: High Intensity Focused Ultrasound (HIFU), Extracorporeal ShockWave Lithotripsy (ESWL), and Distribution Services (DIST). The HIFU segment develops, manufactures, and markets medical devices based on HIFU technology for the minimally invasive treatment of urological and other clinical indications. This segment also offers Ablatherm, an ultrasound guided robotic HIFU device for the treatment of organ-confined prostate cancer; Ablatherm Fusion that incorporates the company's proprietary fusion software, which merges MRI and ultrasound images; and the Focal One, a HIFU robotic device dedicated to the focal therapy of prostate cancer, as well as disposables, and leasing and treatment related services; and maintenance services. The ESWL division manufactures, markets, and services lithotripter for the treatment of urinary tract stones by means of ESWL technology; and offers Sonolith i-move, an extracorporeal shockwave lithotripter to small and mid-size hospitals, as well as sells disposable parts for lithotripters and electrodes. The Distribution division markets, distributes, and services lasers, micro-ultrasound systems, and other medical products from third parties, as well as leases devices; sells disposables and spare parts; and offers maintenance services. The company markets and sells its products through its direct marketing, sales organization, and service platform, as well as through third-party distributors and agents. Its customers include hospitals, urology clinics, and research institutions. The company was incorporated in 1979 and is headquartered in Lyon, France.

How the Company Makes Money

EDAP TMS generates revenue through the sale and leasing of its medical devices, particularly those focused on HIFU technology for treating prostate cancer. The company also earns money from providing maintenance services and consumables related to these devices. Additionally, EDAP TMS engages in strategic partnerships and collaborations with hospitals and clinics to expand the adoption of its technologies. Revenue is further bolstered by the company's efforts in expanding its market presence globally, particularly in Europe, Asia, and the United States.

EDAP TMS Financial Statement Overview

Summary

EDAP TMS faces significant financial challenges with ongoing losses and negative cash flows. While there is some revenue growth and a manageable debt level, persistent profitability issues and cash burn present risks that require strategic improvements for long-term sustainability.

Income Statement

EDAP TMS has seen a moderate revenue growth rate of 4.26% TTM (Trailing-Twelve-Months) compared to the previous year-end, yet it continues to face profitability challenges with a negative EBIT and EBITDA margin, and a net profit margin of -34.96%. The consistent negative profitability metrics indicate significant operational challenges.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.14 TTM, indicating limited leverage. However, the return on equity remains negative at -51.65% TTM, reflecting ongoing losses. The equity ratio of 53.94% suggests a fairly balanced capital structure, though profitability issues pose risks.

Cash Flow

EDAP TMS exhibits a negative free cash flow growth rate and high free cash flow to net income ratio of 1.04 TTM, indicating cash burn challenges. The operating cash flow to net income ratio of 0.87 TTM suggests some alignment between cash flow and earnings, but overall cash management remains weak.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
60.42M	55.11M	44.07M	41.66M	44.91M
	Gross Profit
24.41M	24.19M	18.42M	18.38M	21.00M
	EBIT
-19.81M	-4.26M	-1.61M	-477.00K	185.00K
	EBITDA
-18.39M	-323.00K	309.00K	2.37M	2.06M
	Net Income Common Stockholders
-21.18M	-2.93M	700.00K	-1.70M	1.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
43.47M	63.14M	47.18M	24.70M	20.89M
	Total Assets
91.55M	101.12M	77.23M	55.19M	53.07M
	Total Debt
8.42M	6.66M	8.16M	5.43M	8.66M
	Net Debt
-35.05M	-56.48M	-39.02M	-19.26M	-12.22M
	Total Liabilities
34.63M	29.49M	27.17M	28.95M	25.71M
	Stockholders Equity
56.92M	71.63M	50.05M	26.25M	27.36M
Cash Flow		Free Cash Flow
-18.63M	-5.21M	2.89M	107.00K	2.35M
	Operating Cash Flow
-14.68M	-3.02M	4.45M	1.98M	3.80M
	Investing Cash Flow
-4.34M	-2.38M	-1.64M	-2.01M	-1.53M
	Financing Cash Flow
-911.00K	21.74M	20.27M	3.20M	-664.00K

EDAP TMS Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDAP, the sentiment is Positive. The current price of 2.22 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 2.06, and below the 200-day MA of 2.74, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 89.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDAP.

EDAP TMS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICAD	60 Neutral	$96.06M	―	-18.09%	―	-4.15%	3.49%
ECOR	57 Neutral	$49.27M	―	-158.63%	―	57.09%	52.18%
XTNT	53 Neutral	$65.64M	―	-34.88%	―	28.44%	-61600.00%
OWLT	52 Neutral	$66.18M	―	60.56%	―	44.56%	69.12%
Sector *	52 Neutral	$5.35B	3.96	-42.60%	2.86%	17.58%	1.27%
EDAP	50 Neutral	$83.01M	―	-51.63%	―	11.26%	-14.21%
HYPR	45 Neutral	$53.71M	―	-61.03%	―	16.84%	9.43%