EDAP TMS (EDAP) AI Stock Analysis

• Market Cap: $77.40M
• Dividend Yield: N/A
• Average Volume (3M): 90.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 310
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.17
• Shares Outstanding: 37,392,086
• 10 Day Avg. Volume: 33,623
• 30 Day Avg. Volume: 90,274
• PEG Ratio: 0.40
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 1.24
• P/FCF Ratio: -4.50
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 1.99
• Enterprise Value/Ebitda: -2.76
• 1Y Price Target: $14.00
• Price Target Upside: 569.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $2.00 ▼(-4.31% Downside)

EDAP TMS's overall stock score is driven by strong growth in its core HIFU business, as highlighted in the earnings call, despite ongoing profitability and cash flow challenges. Technical indicators suggest a potential upward trend, but valuation remains a concern due to negative earnings. The company's strategic initiatives and positive reimbursement developments provide a positive outlook, but operational challenges need to be addressed for sustained improvement.

Positive Factors

HIFU Revenue Growth

The significant growth in HIFU revenue demonstrates strong market demand and successful adoption of EDAP's technology, reinforcing its competitive position in the medical devices sector.

Positive Reimbursement Developments

Securing reimbursement in France enhances EDAP's market position and accessibility of its HIFU technology, potentially leading to increased adoption and revenue growth in Europe.

Strategic Financing Facility

The strategic financing facility supports EDAP's expansion plans, enabling further development of its HIFU technology and strengthening its financial position for future growth.

Negative Factors

Profitability Challenges

Ongoing profitability challenges indicate inefficiencies in cost management, which could hinder long-term financial stability and investment potential.

Cash Flow Issues

Cash flow challenges may limit EDAP's ability to invest in growth opportunities and manage operational expenses, impacting its financial health over time.

Decline in Non-core Businesses

The decline in non-core businesses could reduce overall revenue diversification, increasing reliance on the core HIFU segment and exposing EDAP to sector-specific risks.

EDAP TMS Business Overview & Revenue Model

Company Description

EDAP TMS is a global leader in the development and commercialization of minimally invasive medical devices, particularly in the field of urology. The company specializes in high-intensity focused ultrasound (HIFU) technology for the treatment of prostate cancer and offers a range of products and services that include equipment for both hospital and outpatient settings. EDAP operates primarily in the healthcare sector, providing innovative solutions that enhance patient outcomes while reducing recovery times.

How the Company Makes Money

EDAP TMS generates revenue through multiple channels, primarily by selling its proprietary HIFU devices and related consumables to hospitals and clinics. The company also earns income from providing services associated with the operation of these devices, including training and support for medical professionals. Additionally, EDAP has established partnerships with various healthcare institutions to facilitate the adoption of its technology, which can lead to long-term revenue through contracts and service agreements. The company may also benefit from reimbursement policies in healthcare systems that cover the use of its technologies, further contributing to its financial performance.

EDAP TMS Financial Statement Overview

Summary

EDAP TMS shows potential in revenue growth but faces challenges with profitability and cash flow generation. The balance sheet remains relatively stable, though increasing leverage is a concern. The company should focus on improving operational efficiencies and managing its debt to enhance overall financial health.

Income Statement

EDAP TMS has shown consistent revenue growth over the years, with a 6% increase from 2023 to 2024. However, the company has struggled with profitability, evidenced by consistently negative net income and EBIT margins. The gross profit margin has been relatively stable, but the company needs to control its operating expenses to move toward profitability.

Balance Sheet

The balance sheet shows a moderate level of financial health with an equity ratio of 47.5% in 2024, indicative of a balanced capital structure. However, the debt-to-equity ratio has slightly increased over the years, suggesting a rising leverage risk, which could be problematic if profitability doesn't improve.

Cash Flow

The cash flow statement highlights challenges in generating positive free cash flow, with negative figures in recent years. Operating cash flow to net income ratio is negative, reflecting operational inefficiencies. The company needs to improve cash flow generation to support its operations and future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	63.02M	64.11M	60.42M	55.11M	44.07M	41.66M
Gross Profit	26.77M	26.56M	24.41M	24.19M	18.42M	18.38M
EBITDA	-19.29M	-15.93M	-18.39M	-2.65M	309.00K	2.37M
Net Income	-21.01M	-19.02M	-21.18M	-2.93M	700.00K	-1.70M
Balance Sheet
Total Assets	68.34M	86.06M	91.55M	101.12M	77.23M	55.19M
Cash, Cash Equivalents and Short-Term Investments	16.27M	29.84M	43.47M	63.14M	47.18M	24.70M
Total Debt	8.96M	13.92M	8.42M	9.38M	10.01M	11.11M
Total Liabilities	40.52M	45.17M	34.63M	29.49M	27.17M	28.95M
Stockholders Equity	27.82M	40.90M	56.92M	71.63M	50.05M	26.25M
Cash Flow
Free Cash Flow	-17.76M	-17.68M	-18.44M	-5.21M	2.89M	107.00K
Operating Cash Flow	-12.84M	-13.58M	-14.68M	-3.02M	4.45M	1.98M
Investing Cash Flow	-4.93M	-4.12M	-4.34M	-2.38M	-1.64M	-2.01M
Financing Cash Flow	4.97M	4.63M	-911.00K	21.74M	20.27M	3.20M

EDAP TMS Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDAP, the sentiment is Neutral. The current price of 2.09 is below the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.03, and above the 200-day MA of 2.01, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.47 is Neutral, neither overbought nor oversold. The STOCH value of 21.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EDAP.

EDAP TMS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FONR	69 Neutral	$98.56M	12.64	4.92%	―	1.43%	-20.12%
XTNT	52 Neutral	$93.25M	―	-9.80%	―	15.16%	-39.18%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
EDAP	51 Neutral	$77.40M	―	-51.63%	―	―	―
NSPR	50 Neutral	$98.04M	―	-123.51%	―	7.60%	-0.78%
APYX	47 Neutral	$113.46M	―	-156.90%	―	-5.14%	44.86%
ICCM	42 Neutral	$59.85M	―	-230.80%	―	-16.46%	4.14%

EDAP TMS Corporate Events

EDAP TMS Focuses on Robotic HIFU Leadership in Prostate Cancer

EDAP TMS S.A. has announced its strategic focus on becoming the global market leader in robotic HIFU focal therapy for prostate cancer, a move supported by compelling clinical evidence and increasing demand. The company’s Focal One technology is highlighted as a superior treatment option, offering better functional outcomes compared to traditional methods like radical prostatectomy, and is positioned to drive a paradigm shift in prostate cancer treatment.

EDAP TMS Secures HIFU Reimbursement for Prostate Cancer in France

On September 8, 2025, EDAP TMS announced that the French Ministry of Health has approved reimbursement for the High Intensity Focused Ultrasound (HIFU) procedure for prostate cancer treatment in France. This reimbursement milestone allows broader patient access to the Focal One Robotic HIFU procedure, marking a significant commercial achievement for EDAP TMS. The decision is expected to enhance the company’s market position in Europe and potentially accelerate similar approvals in other countries, benefiting stakeholders by expanding treatment options for prostate cancer.

EDAP TMS Reports Record Q2 2025 HIFU Growth and Strategic Expansion Plans

EDAP TMS reported a strong performance in the second quarter of 2025, highlighted by a 140% year-over-year growth in net placements of its Focal One Robotic HIFU Systems and a 76.8% increase in HIFU revenue. The company also executed a letter of intent for a 36 million Euro credit facility with the European Investment Bank to support further growth and strategic expansion of its HIFU business. EDAP raised its 2025 HIFU revenue growth guidance to a range of 26% to 34%, reflecting the increasing demand for its Focal One platform. Despite a decline in its non-core business revenue, the company continues to focus on expanding its HIFU operations, supported by significant clinical evidence and growing adoption in the urology community.

EDAP TMS Secures EUR 36 Million Credit Facility for Growth

On August 26, 2025, EDAP TMS announced a letter of intent for a EUR 36 million credit facility with the European Investment Bank. This funding aims to support the expansion of Focal One® Robotic HIFU in prostate cancer treatment and the development of new clinical indications. The credit facility is expected to close by the end of 2025, enhancing EDAP’s financial position and enabling broader access to its innovative technologies.