TACTILE SYSTEMS TECHNOLOGY I (TCMD) Stock Fundamental Analysis
NASDAQ:TCMD - Nasdaq - US87357P1003 - Common Stock - Currency: USD
Overall TCMD gets a fundamental rating of 6 out of 10. We evaluated TCMD against 187 industry peers in the Health Care Equipment & Supplies industry. While TCMD has a great health rating, its profitability is only average at the moment. TCMD is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
The reported net income has been mixed in the past 5 years: TCMD reported negative net income in multiple years.
In the past 5 years TCMD always reported a positive cash flow from operatings.
1.2 Ratios
TCMD has a better Return On Assets (5.78%) than 85.56% of its industry peers.
Looking at the Return On Equity, with a value of 7.88%, TCMD belongs to the top of the industry, outperforming 82.89% of the companies in the same industry.
TCMD's Return On Invested Capital of 6.08% is amongst the best of the industry. TCMD outperforms 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
TCMD's Profit Margin of 5.52% is fine compared to the rest of the industry. TCMD outperforms 78.61% of its industry peers.
TCMD's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 7.03%, TCMD is in the better half of the industry, outperforming 75.94% of the companies in the same industry.
TCMD's Operating Margin has improved in the last couple of years.
TCMD's Gross Margin of 50.78% is in line compared to the rest of the industry. TCMD outperforms 45.45% of its industry peers.
In the last couple of years the Gross Margin of TCMD has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TCMD is destroying value.
Compared to 1 year ago, TCMD has more shares outstanding
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
TCMD has an Altman-Z score of 3.86. This indicates that TCMD is financially healthy and has little risk of bankruptcy at the moment.
TCMD's Altman-Z score of 3.86 is fine compared to the rest of the industry. TCMD outperforms 74.87% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.67, TCMD belongs to the best of the industry, outperforming 93.05% of the companies in the same industry.
TCMD has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of TCMD (0.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.67 | ||
| Altman-Z | 3.86 |
ROIC/WACC0.7
WACC8.71%
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.
With a decent Quick ratio value of 3.99, TCMD is doing good in the industry, outperforming 73.26% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 5.96% in the past 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
The Earnings Per Share is expected to grow by 29.16% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.67% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 14.42 indicates a correct valuation of TCMD.
Compared to the rest of the industry, the Price/Earnings ratio of TCMD indicates a rather cheap valuation: TCMD is cheaper than 85.56% of the companies listed in the same industry.
TCMD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 12.00 indicates a reasonable valuation of TCMD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TCMD indicates a rather cheap valuation: TCMD is cheaper than 86.63% of the companies listed in the same industry.
TCMD is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 12 |
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.
98.93% of the companies in the same industry are more expensive than TCMD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.87 | ||
| EV/EBITDA | 5.27 |
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)2.97
EPS Next 2Y5.72%
EPS Next 3Y29.16%
5. Dividend
5.1 Amount
TCMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.52
-0.49 (-4.9%)
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 Cap221.34M
Analysts76.36
Price Target13.26 (39.29%)
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 | 14.42 | ||
| Fwd PE | 12 | ||
| P/S | 0.76 | ||
| P/FCF | 5.87 | ||
| P/OCF | 5.51 | ||
| P/B | 1.08 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 5.27 |
EPS(TTM)0.66
EY6.93%
EPS(NY)0.79
Fwd EY8.34%
FCF(TTM)1.62
FCFY17.05%
OCF(TTM)1.73
OCFY18.14%
SpS12.61
BVpS8.84
TBVpS5.71
PEG (NY)N/A
PEG (5Y)2.97
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
WACC8.71%
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%