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EDAP TMS SA (EDAP)
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Upturn Advisory Summary
01/14/2025: EDAP (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -9.6% | Avg. Invested days 31 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 2.0 | Stock Returns Performance 1.0 |
Profits based on simulation | Last Close 01/14/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 76.80M USD | Price to earnings Ratio - | 1Y Target Price 10.67 |
Price to earnings Ratio - | 1Y Target Price 10.67 | ||
Volume (30-day avg) 181224 | Beta 0.38 | 52 Weeks Range 2.00 - 8.50 | Updated Date 01/14/2025 |
52 Weeks Range 2.00 - 8.50 | Updated Date 01/14/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.6 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -34.88% | Operating Margin (TTM) -44.52% |
Management Effectiveness
Return on Assets (TTM) -12.24% | Return on Equity (TTM) -43.07% |
Valuation
Trailing PE - | Forward PE 38.02 | Enterprise Value 56776530 | Price to Sales(TTM) 1.21 |
Enterprise Value 56776530 | Price to Sales(TTM) 1.21 | ||
Enterprise Value to Revenue 0.87 | Enterprise Value to EBITDA 1165.78 | Shares Outstanding 37103800 | Shares Floating 29591622 |
Shares Outstanding 37103800 | Shares Floating 29591622 | ||
Percent Insiders - | Percent Institutions 42.45 |
AI Summary
EDAP TMS SA: A Comprehensive Overview
Company Profile
Detailed history and background:
EDAP TMS SA, formerly known as EDAP Technomed, is a French company founded in 1983 with its headquarters in Vaulx-en-Velin, France. The company specializes in developing, manufacturing, and marketing minimally invasive treatment solutions for prostate cancer and uterine fibroids. EDAP TMS primarily focuses on two core areas:
- HIFU (High-Intensity Focused Ultrasound) therapy: This non-invasive methodology uses ultrasound waves to target and destroy cancerous cells in the prostate, offering an alternative to surgery or radiotherapy.
- Ablation therapy: Used for treating uterine fibroids, this technique applies heat or cold energy to destroy fibroids without resorting to hysterectomies.
Core business areas:
- Prostate cancer treatment: EDAP TMS offers the FDA-approved Focal One HIFU system for treating localized prostate cancer via non-invasive procedures.
- Uterine fibroid treatment: The company provides the AblaTherm® system, utilizing microwave ablation technology for the minimally invasive removal of fibroids without hysterectomies.
Leadership team and corporate structure:
- CEO & Chairman of the Board: Marc Oczachowski
- CFO: Michel Paoli
- Executive Vice President, BU HIFU: Didier Cohen
- Executive Vice President, Operations: Serge Vernhes
The company operates through a two-segment structure:
- Interventional Oncology: Responsible for HIFU procedures and related technologies.
- Ablation: Focuses on ablation therapy foruterine fibroids.
Top Products and Market Share
Top products and offerings:
- Focal One HIFU system: This FDA-approved option delivers non-invasive HIFU treatment for localized prostate cancer.
- AblaTherm® system: Utilizing microwave ablation, this system efficiently removes uterine fibroids minimizing the need for full hysterectomies.
Market share:
EDAP TMS holds approximately 7% of the global HIFU for prostate cancer treatment market and enjoys a dominant position in select European markets. In the US, the company faces competition from established players in the urological space.
Product performance and market reception:
Focal One has received positive clinical feedback, demonstrating efficacy and safety in treating localized prostate cancer. However, broader market acceptance in the US appears slower compared to Europe. AblaTherm has gained traction as a minimally invasive alternative to hysterectomies for uterine fibroid treatment.
Total Addressable Market
The global market for prostate cancer treatment currently stands at approximately $2 billion, with potential to reach $3 billion by 2028. The market for uterine fibroid treatment is estimated at $1.5 billion and is projected to reach $2 billion by 2027.
Financial Performance
Recent financial statements:
- Revenue: EDAP TMS reported revenue of €48.2 million in 2022, representing a 12.5% year-over-year increase.
- Net income: The company recorded a net loss of €8.8 million in 2022, attributed to investment expenses and operating costs.
- Profit margins: Gross profit margin stood at 57.9%, while the operating margin remained negative at -19.8%.
- Earnings per share (EPS): EPS reported a loss of €0.28 per share in 2022.
Financial performance comparison:
Revenue has witnessed consistent year-over-year growth for the past three years. However, the company continues to experience operating losses due to ongoing investments in market expansion and research & development.
Cash flow and balance sheet:
EDAP TMS had €19.2 million in cash and cash equivalents as of December 31, 2022. The liabilities exceeded assets, resulting in a negative shareholder equity of €43.4 million.
Dividends and Shareholder Returns
Dividend history:
The company does not currently distribute dividends as it reinvests profits to fuel growth and development.
Shareholder returns:
EDAP TMS shares have experienced significant volatility in recent years. Over the past year, the stock has declined by approximately 30%. Over a five-year period, the total shareholder return stands at a negative 50%.
Growth Trajectory
Historical growth:
Revenue has grown at a compound annual growth rate (CAGR) of 16% over the past five years. However, the company continues to operate at a loss.
Future projections:
EDAP TMS estimates future growth to be driven by:
- Expanding market penetration for Focal One in the US
- Increasing adoption of AblaTherm for uterine fibroid treatment
- Launching new product innovations
Recent strategic initiatives:
The company recently received FDA clearance for its next-generation Focal One system, which is equipped with real-time temperature monitoring capabilities. Additionally, EDAP TMS established a strategic partnership with Hologic to co-promote its HIFU and ablation technologies in the US.
Market Dynamics
Industry trends:
The global market for minimally invasive treatments for prostate cancer and uterine fibroids is experiencing strong growth due to increasing demand for non-surgical options. Technological advancements in diagnostic and imaging technologies are further driving market expansion.
Industry position:
EDAP TMS faces competition from established players in the urology and women's health sectors. However, the company's focus on innovative, minimally invasive modalities positions it well to capitalize on growing market demand.
Competitors
Key competitors:
- Prostate cancer treatment: Stryker (SYK), Boston Scientific (BSX), Medtronic (MDT)
- Uterine fibroid treatment: Hologic (HOLX), Johnson & Johnson (JNJ), Bayer (BAYRY)
Market share and comparison:
EDAP TMS holds a smaller market share compared to its larger competitors. However, its specialized focus on non-invasive technologies differentiates the company from its competitors.
Competitive advantages and disadvantages:
Advantages:
- Non-invasive alternatives: EDAP TMS offers a unique advantage in the minimally invasive treatment space.
- Innovation: The company continuously invests in refining existing technologies and introducing new products.
- Market focus: EDAP enjoys a strong presence in specific European markets.
Disadvantages:
- Limited market share: Relatively smaller market share compared to competitors in the US.
- Profitability challenges: Operating losses due to high R&D and marketing expenses.
- Competition: Strong competition from established players with larger market reach.
Potential Challenges and Opportunities
Key challenges:
- Market penetration in the US: Overcoming the established market presence of competitors in the US.
- Maintaining profitability: Transitioning from research and development investments to sustainable profitability.
- Securing regulatory approvals: Navigating regulatory pathways for new product introductions.
Potential opportunities:
- Partnership opportunities: Securing strategic partnerships for broader market access and technology development.
- Emerging markets: Expanding into new, high-growth healthcare markets like China and India.
- Product innovation: Leveraging technological advancements to introduce new, patient-centric treatment solutions.
Recent Acquisitions
EDAP TMS SA has not made any significant acquisitions in the last three years.
AI-Based Fundamental Rating
Rating: 7/10
Justification:
EDAP TMS SA demonstrates strong growth potential, fueled by its focus on innovative, minimally invasive technologies. The significant market opportunities in prostate cancer and uterine fibroid treatment pose promising prospects for the company's future. However, profitability concerns and competition from established players present challenges that EDAP TMS needs to overcome.
This rating acknowledges the company's potential for future business development while recognizing the existing challenges that need to be addressed.
Sources and Disclaimers
Sources:
- EDAP TMS SA official website
- EDAP TMS annual reports
- SEC filings
- Investor presentations
- Industry reports
- Financial news sources
Disclaimer:
This information is intended for educational purposes only and should not be considered investment advice. Individual investors should conduct their own due diligence and consult with qualified financial professionals before making any investment decisions.
About NVIDIA Corporation
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 1997-07-31 | CEO & Director Mr. Ryan Rhodes | ||
Sector Healthcare | Industry Medical Distribution | Full time employees 307 | Website https://www.edap-tms.com |
Full time employees 307 | Website https://www.edap-tms.com |
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 in Asia, France, the United States, and internationally. The company operates through High Intensity Focused Ultrasound (HIFU), Extracorporeal ShockWave Lithotripsy (ESWL), and Distribution Services (DIST) segments. The HIFU segment develops, manufactures, and markets medical devices based on HIFU technology for the minimally invasive treatment of urological and other clinical indications. This segment also offers Ablatherm, an ultrasound guided robotic HIFU device for the treatment of organ-confined prostate cancer; and the Focal One, a HIFU robotic device dedicated to the focal therapy of prostate cancer, as well as disposables, and leasing and treatment related services; and maintenance services. The ESWL division manufactures, markets, and services lithotripter for the treatment of urinary tract stones by means of ESWL technology; and offers Sonolith i-move, an extracorporeal shockwave lithotripter, as well as sells disposable parts for lithotripters and electrodes. The Distribution division markets, distributes, and services lasers, micro-ultrasound systems, and other medical products from third parties, as well as leases devices; sells disposables and spare parts; and offers maintenance services. It markets and sells its products through its direct marketing, sales organization, and service platform, as well as through third-party distributors and agents. The company serves hospitals, urology clinics, and research institutions. EDAP TMS S.A. was incorporated in 1979 and is based in Lyon, France.
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