Edap Tms Sa (NASDAQ: EDAP)

Sector: Healthcare Industry: Medical Distribution CIK: 0001041934
Market Cap 172.59 Mn
P/B 6.29
P/E -7.47
P/S 2.30
ROIC (Qtr) -52.41
Div Yield % 0.00
Rev 1y % (Qtr) 12.20
Total Debt (Qtr) 8.88 Mn
Debt/Equity (Qtr) 0.32
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About

EDAP TMS SA, a French company with the ticker symbol EDAP, operates in the medical devices industry, specifically developing, manufacturing, and distributing advanced minimally invasive ultrasound technologies for the diagnosis and treatment of urological diseases. The company's main business activities are divided into three segments: HIFU, ESWL, and Distribution. The HIFU division is dedicated to the development, manufacturing, and marketing of Focal One, an image-guided, robotic HIFU system designed for delivering focal therapy in the management...

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Investment thesis

Bull case

  • Healthy cash reserves of 12.43M provide 2.09x coverage of short-term debt 5.94M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (14.34M) provides exceptional 393.16x coverage of interest expenses (36470.59), showing strong debt service capability.
  • Strong tangible asset base of 69.47M provides 7.82x coverage of total debt 8.88M, indicating robust asset backing and low credit risk.
  • Free cash flow of (20.06M) provides exceptional 550.06x coverage of interest expense (36470.59), showing strong debt service ability.
  • Tangible assets of 69.47M provide exceptional 7.80x coverage of deferred revenue 8.91M, showing strong service capability backing.

Bear case

  • Investment activities of (5.72M) provide weak support for R&D spending of 10.13M, which is -0.56x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (14.34M) provides insufficient coverage of deferred revenue obligations of 8.91M, which is -1.61x, raising concerns about future service delivery capabilities.
  • Operating cash flow of (14.34M) provides minimal -37.85x coverage of tax expenses of 378823.53, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (20.06M) provides weak coverage of capital expenditures of 5.72M, with a -3.51 ratio suggesting additional external financing needs for growth initiatives.
  • Cash position of 12.43M provides only -340.87x coverage of interest expenses of (36470.59), indicating potential refinancing risks in a rising rate environment.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Distribution
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MCK Mckesson Corp 117.90 Bn 27.17 0.30 8.62 Bn
2 CAH Cardinal Health Inc 80.96 Bn 103.48 0.82 9.03 Bn
3 COR Cencora, Inc. 79.51 Bn 93.02 0.52 7.92 Bn
4 HSIC Henry Schein Inc 9.46 Bn 24.20 0.73 3.44 Bn
5 AHG Akso Health Group 0.37 Bn -2.71 24.79 0.00 Bn
6 EDAP Edap Tms Sa 0.17 Bn -7.47 2.30 0.01 Bn
7 QIPT Quipt Home Medical Corp. 0.17 Bn -15.61 0.63 0.11 Bn
8 EMPG Empro Group Inc. 0.12 Bn 157.82 21.62 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.46 1.06
EV to Cash from Ops. EV/CFO -12.39 13.08
EV to Debt EV to Debt 19.99 282.28
EV to EBIT EV/EBIT -7.81 6.31
EV to EBITDA EV/EBITDA -9.49 12.22
EV to Free Cash Flow [EV/FCF] EV/FCF -8.85 15.66
EV to Market Cap EV to Market Cap 1.03 1.21
EV to Revenue EV/Rev 2.37 1.87
Price to Book Value [P/B] P/B 6.29 11.46
Price to Earnings [P/E] P/E -7.47 34.37
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.88
Dividend per Basic Share Div per Share (Qtr) 0.00 0.67
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.23
Interest Coverage Int. cover (Qtr) 623.81 60.87
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -41.92 -12,260.13
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -56.09 27.05
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 8.69 -177.28
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 368.76
EBIT Growth (1y) % EBIT 1y % (Qtr) 7.54 -206.06
EBT Growth (1y) % EBT 1y % (Qtr) 4.86 -173.08
EPS Growth (1y) % EPS 1y % (Qtr) 3.25 -21.54
FCF Growth (1y) % FCF 1y % (Qtr) 15.59 -218.00
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.25 15.84
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.22 1.93
Cash Payout Ratio Cash Payout Ratio 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.34 0.22
Current Ratio Curr Ratio (Qtr) 1.41 1.54
Debt to Equity Ratio Debt/Equity (Qtr) 0.32 -0.33
Interest Cover Ratio Int Coverage (Qtr) 623.81 60.87
Times Interest Earned Times Interest Earned (Qtr) 623.81 60.87
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -94.80
EBIT Margin % EBIT Margin % (Qtr) -25.77 -102.39
EBT Margin % EBT Margin % (Qtr) -30.26 -105.05
Gross Margin % Gross Margin % (Qtr) 43.20 23.37
Net Profit Margin % Net Margin % (Qtr) -30.80 -86.72