NasdaqGM:EDAP

Stock Analysis Report

Executive Summary

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 worldwide.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has EDAP TMS's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EDAP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

EDAP

-6.9%

US Medical Equipment

-7.4%

US Market


1 Year Return

40.4%

EDAP

12.7%

US Medical Equipment

10.5%

US Market

Return vs Industry: EDAP exceeded the US Medical Equipment industry which returned 12.7% over the past year.

Return vs Market: EDAP exceeded the US Market which returned 10.5% over the past year.


Shareholder returns

EDAPIndustryMarket
7 Day1.0%-6.9%-7.4%
30 Day-1.5%-5.6%-3.6%
90 Day-20.9%-1.7%-0.6%
1 Year40.4%40.4%13.6%12.7%12.8%10.5%
3 Year38.4%38.4%68.0%63.3%37.4%28.6%
5 Year-0.5%-0.5%103.0%81.6%61.3%43.6%

Price Volatility Vs. Market

How volatile is EDAP TMS's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EDAP TMS undervalued compared to its fair value and its price relative to the market?

30.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate EDAP's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate EDAP's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: EDAP is good value based on its PE Ratio (30.6x) compared to the Medical Equipment industry average (44.9x).

PE vs Market: EDAP is poor value based on its PE Ratio (30.6x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: EDAP is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: EDAP is overvalued based on its PB Ratio (4.3x) compared to the US Medical Equipment industry average (4x).


Next Steps

Future Growth

How is EDAP TMS forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

28.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDAP's forecast earnings growth (28.7% per year) is above the savings rate (1.7%).

Earnings vs Market: EDAP's earnings (28.7% per year) are forecast to grow faster than the US market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EDAP's revenue (9.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: EDAP's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EDAP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has EDAP TMS performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EDAP has a high level of non-cash earnings.

Growing Profit Margin: EDAP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: EDAP has become profitable over the past 5 years, growing earnings by 8.7% per year.

Accelerating Growth: EDAP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EDAP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (1.7%).


Return on Equity

High ROE: EDAP's Return on Equity (14.1%) is considered low.


Next Steps

Financial Health

How is EDAP TMS's financial position?


Financial Position Analysis

Short Term Liabilities: EDAP's short term assets (€40.4M) exceed its short term liabilities (€16.8M).

Long Term Liabilities: EDAP's short term assets (€40.4M) exceed its long term liabilities (€7.0M).


Debt to Equity History and Analysis

Debt Level: EDAP's debt to equity ratio (22.1%) is considered satisfactory.

Reducing Debt: EDAP's debt to equity ratio has reduced from 27.3% to 22.1% over the past 5 years.


Balance Sheet

Inventory Level: EDAP has a high level of physical assets or inventory.

Debt Coverage by Assets: EDAP's debt is covered by short term assets (assets are 7.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EDAP is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if EDAP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is EDAP TMS's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EDAP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EDAP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EDAP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EDAP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EDAP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.7yrs

Average board tenure


CEO

Marc Oczachowski (49yo)

12.9yrs

Tenure

Mr. Marc Oczachowski has been Chief Executive Officer of EDAP TMS SA since March 31, 2007 and its Executive Director since July 1, 2017. Mr. Oczachowski serves as the President of EDAP TMS France SAS and E ...


Board Members

NamePositionTenureCompensationOwnership
Marc Oczachowski
CEO & Executive Director12.9yrsno datano data
Argil Wheelock
Independent Director10.7yrsno datano data
Philippe Chauveau
Independent Chairman of the Board22.8yrsno datano data
Pierre Beysson
Independent Director17.4yrsno datano data
Robrecht L. Michiels
Independent Director10.6yrsno datano data

10.7yrs

Average Tenure

71yo

Average Age

Experienced Board: EDAP's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

EDAP TMS S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EDAP TMS S.A.
  • Ticker: EDAP
  • Exchange: NasdaqGM
  • Founded: 1979
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$115.991m
  • Shares outstanding: 29.00m
  • Website: https://www.edap-tms.com

Number of Employees


Location

  • EDAP TMS S.A.
  • Parc d’Activites la Poudrette-Lamartine
  • 4/6, rue du Dauphiné
  • Lyon
  • Rhône-Alpes
  • 69120
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EDAPNasdaqGM (Nasdaq Global Market)YesADS EACH REPR 1 ORD SHARE FRF0.8USUSDAug 1997
EDADB (Deutsche Boerse AG)YesADS EACH REPR 1 ORD SHARE FRF0.8DEEURAug 1997

Biography

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 worldwide. It operates in two divisions, High Intensity Focused Ultrasound (HIFU) and Urological Devices and Services (UDS). The HIFU division develops, manufactures, and markets medical devices based on HIFU technology for the minimally invasive treatment of urological and other clinical indications. This segment 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. It also provides disposables, and leasing and treatment related services; and maintenance services. The UDS division develops, markets, manufactures, and services medical devices for the minimally invasive diagnosis or treatment of urological disorders primarily urinary stones and other clinical indications. This segment offers Sonolith i-move and the Sonolith i-sys lithotripters for the treatment of urinary tract stones by means of extracorporeal shockwave lithotripsy technology. It also leases lithotripters; and sells disposables, spare parts, and maintenance services. The company markets and sells its products through its direct marketing and sales organization, as well as through third-party distributors and agents. Its customers include public and private hospitals, urology clinics, and research institutions. The company was founded in 1979 and is headquartered in Lyon, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 23:36
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.