Mimedx Group, Inc. (NASDAQ: MDXG)

Sector: Healthcare Industry: Biotechnology CIK: 0001376339
Market Cap 750.93 Mn
P/B 3.14
P/E 18.39
P/S 1.91
ROIC (Qtr) 15.87
Div Yield % 0.00
Rev 1y % (Qtr) 35.30
Total Debt (Qtr) 18.21 Mn
Debt/Equity (Qtr) 0.08

About

MIMEDX GROUP, INC., also known by its stock symbol MDXG, operates in the healthcare industry with a focus on placental biologics. The company's mission is to help humans heal by addressing unmet clinical needs, with a vision to be the leading global provider of healing solutions through relentless innovation to restore quality of life. MIMEDX's primary business activities involve the development, manufacturing, and marketing of human placental allografts. These allografts are used to treat chronic and hard-to-heal wounds, and the company operates...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 67.83M provides robust 3.72x coverage of total debt 18.21M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 142.08M provide 103.33x coverage of short-term debt 1.38M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 288.40M provides 15.83x coverage of total debt 18.21M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 66.82M exceeds capital expenditure of 1.01M by 66.09x, indicating strong organic growth funding capability.
  • Tangible assets of 288.40M provide robust 6.42x coverage of other current liabilities 44.89M, indicating strong asset backing.

Bear case

  • Operating cash flow of 67.83M barely covers its investment activities of (9.32M), with a coverage ratio of -7.28, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (9.32M) provide weak support for R&D spending of 13.90M, which is -0.67x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 142.08M provide limited coverage of acquisition spending of (6.26M), which is -22.70x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 78.19M relative to inventory of 26.50M (2.95 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 67.83M shows concerning coverage of stock compensation expenses of 18.63M, with a 3.64 ratio indicating potential earnings quality issues.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,151.25 Bn -1,249.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 485.22 Bn 7,078.40 97.58 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.74 Bn 33.40 10.47 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 82.16 Bn 18.24 5.73 2.71 Bn
5 ARGX Argenx Se 48.85 Bn 32.43 25,472.44 -
6 ALNY Alnylam Pharmaceuticals, Inc. 46.12 Bn 1,058.58 14.37 3.21 Bn
7 BNTC Benitec Biopharma Inc. 42.24 Bn -1,010.00 0.00 0.00 Bn
8 INSM INSMED Inc 28.75 Bn -24.29 64.32 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.04 11.11
EV to Cash from Ops. EV/CFO 9.59 26.32
EV to Debt EV to Debt 35.72 688.48
EV to EBIT EV/EBIT 12.21 -10.97
EV to EBITDA EV/EBITDA 9.40 8.32
EV to Free Cash Flow [EV/FCF] EV/FCF 9.74 25.03
EV to Market Cap EV to Market Cap 0.87 163.46
EV to Revenue EV/Rev 1.65 148.57
Price to Book Value [P/B] P/B 3.14 20.73
Price to Earnings [P/E] P/E 18.39 -0.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.47
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.14
Interest Coverage Int. cover (Qtr) -21.91 860.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 45.26 -26.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 60.00 756.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -57.88 -53.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1.64 -4.42
EBIT Growth (1y) % EBIT 1y % (Qtr) -18.73 -62.56
EBT Growth (1y) % EBT 1y % (Qtr) -10.95 -19.19
EPS Growth (1y) % EPS 1y % (Qtr) -55.56 -4.07
FCF Growth (1y) % FCF 1y % (Qtr) 19.69 -33.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.87 264.38
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.23 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.46 3.81
Current Ratio Curr Ratio (Qtr) 4.41 7.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.08 0.43
Interest Cover Ratio Int Coverage (Qtr) -21.91 860.86
Times Interest Earned Times Interest Earned (Qtr) -21.91 860.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.60 -17,746.13
EBIT Margin % EBIT Margin % (Qtr) 13.54 -18,101.92
EBT Margin % EBT Margin % (Qtr) 14.16 -18,961.86
Gross Margin % Gross Margin % (Qtr) 82.00 -9.24
Net Profit Margin % Net Margin % (Qtr) 10.40 -18,911.61