NasdaqGM:TMDX

Stock Analysis Report

Executive Summary

Transmedics Group, Inc., a commercial-stage medical technology company, engages in transforming organ transplant therapy for end-stage organ failure patients across multiple disease states.

Rewards

Trading at 40% below its fair value

Revenue is forecast to grow 44.11% per year

Revenue grew by 82.5% over the past year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years



Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has TransMedics Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TMDX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

TMDX

1.6%

US Medical Equipment

2.0%

US Market


1 Year Return

n/a

TMDX

27.4%

US Medical Equipment

23.6%

US Market

Return vs Industry: Insufficient data to determine how TMDX performed against the US Medical Equipment industry.

Return vs Market: Insufficient data to determine how TMDX performed against the US Market.


Shareholder returns

TMDXIndustryMarket
7 Day5.3%1.6%2.0%
30 Day5.9%4.0%3.9%
90 Day11.2%10.6%12.0%
1 Yearn/a28.4%27.4%26.2%23.6%
3 Yearn/a94.8%89.2%53.2%43.3%
5 Yearn/a126.4%102.2%75.7%56.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is TransMedics Group undervalued compared to its fair value and its price relative to the market?

39.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TMDX ($19.43) is trading below our estimate of fair value ($32.39)

Significantly Below Fair Value: TMDX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TMDX is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: TMDX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TMDX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TMDX is overvalued based on its PB Ratio (6.5x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

How is TransMedics Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

24.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TMDX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TMDX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TMDX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TMDX's revenue (44.1% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: TMDX's revenue (44.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TMDX is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has TransMedics Group performed over the past 5 years?

-54.1%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: TMDX is currently unprofitable.

Growing Profit Margin: TMDX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if TMDX's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare TMDX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TMDX is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (31%).


Return on Equity

High ROE: TMDX has a negative Return on Equity (-50.42%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TransMedics Group's financial position?


Financial Position Analysis

Short Term Liabilities: TMDX's short term assets ($107.4M) exceed its short term liabilities ($14.6M).

Long Term Liabilities: TMDX's short term assets ($107.4M) exceed its long term liabilities ($34.5M).


Debt to Equity History and Analysis

Debt Level: TMDX's debt to equity ratio (53.6%) is considered high.

Reducing Debt: Insufficient data to determine if TMDX's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: TMDX has a low level of unsold assets or inventory.

Debt Coverage by Assets: TMDX's debt is covered by short term assets (assets are 3.2x 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: TMDX has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

What is TransMedics Group'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 TMDX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Growing Dividend: Insufficient data to determine if TMDX'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 TMDX'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 TransMedics Group's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Waleed Hassanein (51yo)

21.4yrs

Tenure

US$524,000

Compensation

Dr. Waleed H. Hassanein, M.D. is the Founder of Transmedics Group, Inc. and has been its President, Chief Executive Officer and Director since August 1998. He Founded TransMedics, Inc. in August 1998 and h ...


CEO Compensation Analysis

Compensation vs Market: Waleed's total compensation ($USD524.00K) is below average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Insufficient data to compare Waleed's compensation with company performance.


Management Age and Tenure

3.1yrs

Average Tenure

51yo

Average Age

Experienced Management: TMDX's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

16.0yrs

Average Tenure

61yo

Average Age

Experienced Board: TMDX's board of directors are seasoned and experienced ( 16 years average tenure).


Insider Trading

Insider Buying: TMDX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$9,375,00010 Dec 19
United Therapeutics Corporation
EntityCompany
Shares500,000
Max PriceUS$18.75
BuyUS$170,00013 Nov 19
David Weill
EntityIndividual
Shares10,000
Max PriceUS$17.00
BuyUS$533,32806 May 19
Edwin Kania
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares33,333
Max PriceUS$16.00
BuyUS$136,00006 May 19
Edward Basile
EntityIndividual
Shares8,500
Max PriceUS$16.00

Ownership Breakdown

Dilution of Shares: TMDX only recently listed within the past 12 months, with total shares outstanding growing by 475.3% in the past year..


Management Team

  • Waleed Hassanein (51yo)

    Founder

    • Tenure: 21.4yrs
    • Compensation: US$524.00k
  • John Carey (55yo)

    Vice President of Operations

    • Tenure: 7yrs
  • Tamer Khayal (50yo)

    Chief Commercial Officer

    • Compensation: US$415.80k
  • Stephen Gordon (51yo)

    CFO. Treasurer & Secretary

    • Tenure: 4.8yrs
    • Compensation: US$371.25k
  • Ike Okonkwo (48yo)

    Vice President of Finance & Accounting

    • Tenure: 0.8yrs
  • Brian Thomson (51yo)

    Vice President of Human Resources

    • Tenure: 1.3yrs
  • Mark Anderson

    Senior Director of Technology Development

    • Tenure: 1yrs

Board Members

  • Ed Kania (61yo)

    Independent Director

    • Tenure: 16yrs
  • Jim Tobin (74yo)

    Chairman

    • Tenure: 9yrs
  • Waleed Hassanein (51yo)

    Founder

    • Tenure: 21.4yrs
    • Compensation: US$524.00k
  • Edward Zavala

    Member of Advisory Board

    • Gayle Winters

      Member of Advisory Board

      • Ryszard Smolenski

        Member of Advisory Board

        • Bruce Rosengard

          Member of Advisory Board

          • Scott Solomon

            Member of Advisory Board

            • Bob Kormos

              Member of Advisory Board

              • Valluvan Jeevanandam

                Member of Advisory Board

                Company Information

                TransMedics Group, Inc.'s company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: TransMedics Group, Inc.
                • Ticker: TMDX
                • Exchange: NasdaqGM
                • Founded: 1998
                • Industry: Health Care Equipment
                • Sector: Healthcare
                • Market Cap: US$417.136m
                • Shares outstanding: 21.16m
                • Website: https://www.transmedics.com

                Number of Employees


                Location

                • TransMedics Group, Inc.
                • 200 Minuteman Road
                • Suite 302
                • Andover
                • Massachusetts
                • 1810
                • United States

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                TMDXNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMay 2019

                Biography

                Transmedics Group, Inc., a commercial-stage medical technology company, engages in transforming organ transplant therapy for end-stage organ failure patients across multiple disease states. The company offers Organ Care System (OCS), a portable organ perfusion, optimization, and monitoring system that utilizes its proprietary and customized technology to replicate near-physiologic conditions for donor organs outside of the human body. Its Organ Care System includes OCS LUNG, a portable perfusion, ventilation, and monitoring system that maintains the organ at a near-physiologic state allowing physicians to assess and improve the condition of lungs between the donor and recipient sites; OCS Heart, a portable, warm perfusion, and monitoring system designed to keep a donor heart at a human-like, metabolically active state; and OCS Liver, a system that is evaluated in clinical trials for utilized and unutilized donor livers. The company offers its products in the United States and internationally. Transmedics Group, Inc. was founded in 1998 and is headquartered in Andover, Massachusetts. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/19 00:43
                End of Day Share Price2020/01/17 00:00
                Earnings2019/09/28
                Annual Earnings2018/12/29


                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.