NasdaqGM:TCMD

Stock Analysis Report

Tactile Systems Technology

Executive Summary

Tactile Systems Technology, Inc., a medical technology company, develops and provides medical devices for the treatment of chronic diseases in the United States.

Rewards

Earnings are forecast to grow 30.69% per year

Earnings grew by 39.2% over the past year

Risk Analysis

High level of non-cash earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has Tactile Systems Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.5%

TCMD

1.7%

US Medical Equipment

1.7%

US Market


1 Year Return

-3.8%

TCMD

27.4%

US Medical Equipment

23.6%

US Market

Return vs Industry: TCMD underperformed the US Medical Equipment industry which returned 28.4% over the past year.

Return vs Market: TCMD underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

TCMDIndustryMarket
7 Day-3.5%1.7%1.7%
30 Day-12.2%3.6%3.5%
90 Day35.7%11.4%11.7%
1 Year-3.8%-3.8%28.4%27.4%26.2%23.6%
3 Year269.1%269.1%94.9%89.3%53.2%43.3%
5 Yearn/a127.2%102.9%75.5%56.1%

Price Volatility Vs. Market

How volatile is Tactile Systems Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tactile Systems Technology undervalued compared to its fair value and its price relative to the market?

126.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: TCMD is poor value based on its PE Ratio (131.7x) compared to the Medical Equipment industry average (46.3x).

PE vs Market: TCMD is poor value based on its PE Ratio (131.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: TCMD is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: TCMD is overvalued based on its PB Ratio (11.6x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

How is Tactile Systems Technology forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

30.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCMD's forecast earnings growth (30.7% per year) is above the savings rate (1.7%).

Earnings vs Market: TCMD's earnings (30.7% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: TCMD's revenue (17.9% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: TCMD's revenue (17.9% 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 TCMD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tactile Systems Technology performed over the past 5 years?

61.0%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: TCMD's current net profit margins (5.1%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: TCMD's earnings have grown significantly by 61% per year over the past 5 years.

Accelerating Growth: TCMD's earnings growth over the past year (39.2%) is below its 5-year average (61% per year).

Earnings vs Industry: TCMD earnings growth over the past year (39.2%) exceeded the Medical Equipment industry 31%.


Return on Equity

High ROE: TCMD's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tactile Systems Technology's financial position?


Financial Position Analysis

Short Term Liabilities: TCMD's short term assets ($102.7M) exceed its short term liabilities ($24.1M).

Long Term Liabilities: TCMD's short term assets ($102.7M) exceed its long term liabilities ($15.7M).


Debt to Equity History and Analysis

Debt Level: TCMD is debt free.

Reducing Debt: TCMD has no debt compared to 5 years ago when its debt to equity ratio was 0.06%.

Debt Coverage: TCMD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: TCMD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if TCMD's debt is covered by short term assets.


Next Steps

Dividend

What is Tactile Systems Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate TCMD'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 TCMD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TCMD'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 TCMD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Tactile Systems Technology's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Jerry Mattys (59yo)

14.3yrs

Tenure

US$2,049,160

Compensation

Mr. Gerald R. Mattys, also known as Jerry, has been the Chief Executive Officer of Tactile Systems Technology, Inc. since 2005. Mr. Mattys served as the Chief Executive Officer of Medisyn Technologies Inc. ...


CEO Compensation Analysis

Compensation vs Market: Jerry's total compensation ($USD2.05M) is about average for companies of similar size in the US market ($USD2.51M).

Compensation vs Earnings: Jerry's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.7yrs

Average Tenure

57.5yo

Average Age

Experienced Management: TCMD's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

60yo

Average Age

Experienced Board: TCMD's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$492,75411 Sep 19
Richard Nigon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,937
Max PriceUS$49.92
SellUS$95,69006 Sep 19
Richard Nigon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,939
Max PriceUS$49.35
SellUS$254,36526 Aug 19
Kevin Roche
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$50.87
SellUS$245,35203 Jun 19
Kevin Roche
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,907
Max PriceUS$50.00
SellUS$530,35023 May 19
Robert Folkes
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares10,607
Max PriceUS$50.00
SellUS$755,01517 May 19
Richard Nigon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$50.33
SellUS$577,82513 May 19
Kevin Roche
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,093
Max PriceUS$57.25

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Management Team

  • Jerry Mattys (59yo)

    CEO & Director

    • Tenure: 14.3yrs
    • Compensation: US$2.05m
  • Robert Folkes (56yo)

    Chief Operating Officer

    • Tenure: 4.9yrs
    • Compensation: US$887.25k
  • Juleen Krings

    Chief Human Resources Officer

    • Tenure: 1.4yrs
  • Brent Moen (52yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: US$1.16m
  • Thomas O’Donnell

    Chief Medical Officer

    • Tenure: 2.5yrs
  • Bryan Rishe (63yo)

    Senior Vice President of Sales

    • Tenure: 12yrs
    • Compensation: US$989.37k
  • Sunday Hoy

    VP & Compliance Officer

    • Darren Wennen

      Vice President of Marketing & Clinical Affairs

      • Tenure: 6yrs
    • Peter Schaubach

      Chief Information Officer

      • Tenure: 1yrs

    Board Members

    • Dick Nigon (71yo)

      Independent Director

      • Tenure: 7.3yrs
      • Compensation: US$184.44k
    • Ray Huggenberger (60yo)

      Independent Director

      • Tenure: 2.3yrs
      • Compensation: US$173.20k
    • Bill Burke (60yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: US$183.20k
    • Jerry Mattys (59yo)

      CEO & Director

      • Tenure: 14.3yrs
      • Compensation: US$2.05m
    • Peter Soderberg (72yo)

      Independent Chairman

      • Tenure: 7yrs
      • Compensation: US$207.05k
    • Cheryl Pegus (55yo)

      Independent Director

      • Tenure: 2.5yrs
      • Compensation: US$179.20k
    • Kevin Roche (68yo)

      Independent Director

      • Tenure: 15.3yrs
      • Compensation: US$179.20k
    • Anthony Comerota

      Chairman of Scientific Advisory Board

      • Tenure: 2.4yrs
    • Steven Dean

      Member of Scientific Advisory Board

      • Tenure: 7yrs
    • Christopher Pittman

      Member of Scientific Advisory Board

      • Tenure: 2.4yrs

    Company Information

    Tactile Systems Technology, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Tactile Systems Technology, Inc.
    • Ticker: TCMD
    • Exchange: NasdaqGM
    • Founded: 1995
    • Industry: Health Care Equipment
    • Sector: Healthcare
    • Market Cap: US$1.157b
    • Shares outstanding: 19.03m
    • Website: https://www.tactilemedical.com

    Number of Employees


    Location

    • Tactile Systems Technology, Inc.
    • 1331 Tyler Street NE
    • Suite 200
    • Minneapolis
    • Minnesota
    • 55413
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    TCMDNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJul 2016
    3L3DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2016

    Biography

    Tactile Systems Technology, Inc., a medical technology company, develops and provides medical devices for the treatment of chronic diseases in the United States. The company offers Flexitouch system, an at-home solution for lymphedema patients; and ACTitouch system, a home-based solution for chronic venous insufficiency patients. It also provides Entré System, a portable pneumatic compression device that is used for the at-home treatment of venous disorders, such as lymphedema and chronic venous insufficiency, including venous leg ulcers; and Airwear Gradient Compression Wrap management of venous insufficiency, venous hypertension, venous ulcerations and lymphedema under the trade name Aero-Wrap. The company was founded in 1995 and is headquartered in Minneapolis, Minnesota. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 00:39
    End of Day Share Price2020/01/17 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.