TACTILE SYSTEMS TECHNOLOGY I (TCMD) Stock Fundamental Analysis
NASDAQ:TCMD - Nasdaq - US87357P1003 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to TCMD. TCMD was compared to 187 industry peers in the Health Care Equipment & Supplies industry. TCMD has an excellent financial health rating, but there are some minor concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on TCMD. With these ratings, TCMD could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year TCMD was profitable.
In the past year TCMD had a positive cash flow from operations.
In multiple years TCMD reported negative net income over the last 5 years.
TCMD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TCMD (5.78%) is better than 85.56% of its industry peers.
With an excellent Return On Equity value of 7.88%, TCMD belongs to the best of the industry, outperforming 82.89% of the companies in the same industry.
TCMD has a better Return On Invested Capital (6.08%) than 80.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 7.88% | ||
| ROIC | 6.08% |
ROA(3y)2.94%
ROA(5y)0.73%
ROE(3y)2.6%
ROE(5y)-0.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 5.52%, TCMD is doing good in the industry, outperforming 78.61% of the companies in the same industry.
TCMD's Profit Margin has been stable in the last couple of years.
TCMD's Operating Margin of 7.03% is fine compared to the rest of the industry. TCMD outperforms 75.94% of its industry peers.
In the last couple of years the Operating Margin of TCMD has grown nicely.
The Gross Margin of TCMD (50.78%) is comparable to the rest of the industry.
TCMD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.03% | ||
| PM (TTM) | 5.52% | ||
| GM | 50.78% |
OM growth 3YN/A
OM growth 5Y6.44%
PM growth 3YN/A
PM growth 5Y-0.06%
GM growth 3Y3.35%
GM growth 5Y-0.43%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TCMD is destroying value.
TCMD has more shares outstanding than it did 1 year ago.
TCMD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TCMD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.86 indicates that TCMD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.86, TCMD is in the better half of the industry, outperforming 73.80% of the companies in the same industry.
The Debt to FCF ratio of TCMD is 0.67, which is an excellent value as it means it would take TCMD, only 0.67 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TCMD (0.67) is better than 93.05% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that TCMD is not too dependend on debt financing.
TCMD's Debt to Equity ratio of 0.11 is in line compared to the rest of the industry. TCMD outperforms 58.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 3.86 |
ROIC/WACC0.7
WACC8.69%
2.3 Liquidity
A Current Ratio of 4.52 indicates that TCMD has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.52, TCMD is doing good in the industry, outperforming 71.12% of the companies in the same industry.
TCMD has a Quick Ratio of 3.99. This indicates that TCMD is financially healthy and has no problem in meeting its short term obligations.
TCMD has a Quick ratio of 3.99. This is in the better half of the industry: TCMD outperforms 73.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 3.99 |
3. Growth
3.1 Past
The earnings per share for TCMD have decreased strongly by -45.45% in the last year.
TCMD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.86% yearly.
Looking at the last year, TCMD shows a small growth in Revenue. The Revenue has grown by 5.96% in the last year.
Measured over the past years, TCMD shows a quite strong growth in Revenue. The Revenue has been growing by 9.11% on average per year.
EPS 1Y (TTM)-45.45%
EPS 3YN/A
EPS 5Y4.86%
EPS Q2Q%-62.5%
Revenue 1Y (TTM)5.96%
Revenue growth 3Y12.08%
Revenue growth 5Y9.11%
Sales Q2Q%0.29%
3.2 Future
TCMD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.16% yearly.
TCMD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.67% yearly.
EPS Next Y-19.84%
EPS Next 2Y5.72%
EPS Next 3Y29.16%
EPS Next 5YN/A
Revenue Next Year5.91%
Revenue Next 2Y7.21%
Revenue Next 3Y8.67%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.64, which indicates a correct valuation of TCMD.
TCMD's Price/Earnings ratio is rather cheap when compared to the industry. TCMD is cheaper than 85.03% of the companies in the same industry.
TCMD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.17 indicates a correct valuation of TCMD.
Based on the Price/Forward Earnings ratio, TCMD is valued cheaper than 86.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TCMD to the average of the S&P500 Index (35.58), we can say TCMD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 12.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TCMD is valued cheaply inside the industry as 98.40% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TCMD is valued cheaper than 98.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.95 | ||
| EV/EBITDA | 5.3 |
4.3 Compensation for Growth
TCMD has a very decent profitability rating, which may justify a higher PE ratio.
TCMD's earnings are expected to grow with 29.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)3.01
EPS Next 2Y5.72%
EPS Next 3Y29.16%
5. Dividend
5.1 Amount
No dividends for TCMD!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.66
-0.38 (-3.78%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change0%
Ins Owners2.59%
Ins Owner Change9.34%
Market Cap224.59M
Analysts76.36
Price Target13.26 (37.27%)
Short Float %10.63%
Short Ratio7.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-28.55%
Min EPS beat(2)-82.07%
Max EPS beat(2)24.97%
EPS beat(4)3
Avg EPS beat(4)3.04%
Min EPS beat(4)-82.07%
Max EPS beat(4)53.45%
EPS beat(8)7
Avg EPS beat(8)426.02%
EPS beat(12)9
Avg EPS beat(12)286.31%
EPS beat(16)10
Avg EPS beat(16)190.43%
Revenue beat(2)0
Avg Revenue beat(2)-3.42%
Min Revenue beat(2)-5.08%
Max Revenue beat(2)-1.76%
Revenue beat(4)0
Avg Revenue beat(4)-3.49%
Min Revenue beat(4)-5.72%
Max Revenue beat(4)-1.4%
Revenue beat(8)2
Avg Revenue beat(8)-1.77%
Revenue beat(12)6
Avg Revenue beat(12)0.41%
Revenue beat(16)9
Avg Revenue beat(16)0.23%
PT rev (1m)0%
PT rev (3m)-36.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 12.17 | ||
| P/S | 0.77 | ||
| P/FCF | 5.95 | ||
| P/OCF | 5.59 | ||
| P/B | 1.09 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 5.3 |
EPS(TTM)0.66
EY6.83%
EPS(NY)0.79
Fwd EY8.21%
FCF(TTM)1.62
FCFY16.8%
OCF(TTM)1.73
OCFY17.88%
SpS12.61
BVpS8.84
TBVpS5.71
PEG (NY)N/A
PEG (5Y)3.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 7.88% | ||
| ROCE | 8.41% | ||
| ROIC | 6.08% | ||
| ROICexc | 10.16% | ||
| ROICexgc | 20.26% | ||
| OM | 7.03% | ||
| PM (TTM) | 5.52% | ||
| GM | 50.78% | ||
| FCFM | 12.87% |
ROA(3y)2.94%
ROA(5y)0.73%
ROE(3y)2.6%
ROE(5y)-0.37%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y15.26%
ROICexc growth 3YN/A
ROICexc growth 5Y1.86%
OM growth 3YN/A
OM growth 5Y6.44%
PM growth 3YN/A
PM growth 5Y-0.06%
GM growth 3Y3.35%
GM growth 5Y-0.43%
F-Score8
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.67 | ||
| Debt/EBITDA | 0.82 | ||
| Cap/Depr | 35.07% | ||
| Cap/Sales | 0.82% | ||
| Interest Coverage | 10.47 | ||
| Cash Conversion | 146.06% | ||
| Profit Quality | 233% | ||
| Current Ratio | 4.52 | ||
| Quick Ratio | 3.99 | ||
| Altman-Z | 3.86 |
F-Score8
WACC8.69%
ROIC/WACC0.7
Cap/Depr(3y)35.17%
Cap/Depr(5y)50.34%
Cap/Sales(3y)0.85%
Cap/Sales(5y)0.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-45.45%
EPS 3YN/A
EPS 5Y4.86%
EPS Q2Q%-62.5%
EPS Next Y-19.84%
EPS Next 2Y5.72%
EPS Next 3Y29.16%
EPS Next 5YN/A
Revenue 1Y (TTM)5.96%
Revenue growth 3Y12.08%
Revenue growth 5Y9.11%
Sales Q2Q%0.29%
Revenue Next Year5.91%
Revenue Next 2Y7.21%
Revenue Next 3Y8.67%
Revenue Next 5YN/A
EBIT growth 1Y9.09%
EBIT growth 3YN/A
EBIT growth 5Y16.13%
EBIT Next Year54.41%
EBIT Next 3Y44.27%
EBIT Next 5YN/A
FCF growth 1Y540.65%
FCF growth 3Y420.83%
FCF growth 5YN/A
OCF growth 1Y406.92%
OCF growth 3Y149.11%
OCF growth 5Y74.54%