Mimedx Group, Inc. (MDXG) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001376339

P/B 4.41

P/E 25.79

P/S 2.68

Market Cap 1.05 Bn

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...

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 in two main segments: the Wound segment and the Surgical segment. The Wound segment is a significant part of MIMEDX's business, accounting for a substantial portion of the company's revenue. The company's products are used to treat chronic and hard-to-heal wounds, including diabetic foot ulcers, venous leg ulcers, and pressure ulcers, and are used in various settings such as wound care centers, hospitals, and physician offices.

The Surgical segment is another significant part of MIMEDX's business, accounting for a substantial portion of the company's revenue. The company's products are used in various surgical settings, including lower extremity repair, plastic surgery, vascular surgery, and orthopedic repairs and reconstruction. MIMEDX's primary products include EPIFIX, EPICORD, EPIEFFECT, AMNIOFIX, AMNIOCORD, and AMNIOEFFECT, which are used to provide a protective barrier or cover for wounds.

MIMEDX is a leader in the placental biologics industry, with a strong competitive position in the Wound and Surgical segments. The company's products are used in various settings, including wound care centers, hospitals, and physician offices, and are marketed through a direct sales force and a network of independent sales agents. MIMEDX's key competitors in the Wound and Surgical segments include companies such as Allergan, Inc., Integra LifeSciences Corporation, and Zimmer Biomet Holdings, Inc.

The company's customer base includes hospitals, wound care centers, physician offices, and federal health care facilities such as the Department of Veterans Affairs (VA) and Department of Defense (DoD) hospitals. MIMEDX's products are used by a wide range of healthcare providers, including wound care specialists, surgeons, and primary care physicians.

MIMEDX's market opportunity is significant, with a growing demand for advanced wound care and surgical solutions. The company is well-positioned to continue to grow and expand its business in the future. The company's strategic priorities include building its leadership position in the Wound and Surgical segments, developing opportunities for the company's products in adjacent markets, and expanding its presence in international markets. MIMEDX is also focused on advancing its scientific and therapeutic potential, and rigorously demonstrating the clinical and economic effectiveness of its products.

Stock Price Chart

Analysis

Pros

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.

Cons

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.

Peer Comparison

Companies in the Biotechnology

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SMMT	Summit Therapeutics Inc.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	2.99	12.31
EV to Cash from Ops.	14.04	23.25
EV to Debt	52.29	738.44
EV to EBIT	17.87	-9.16
EV to EBITDA	13.76	6.95
EV to Free Cash Flow [EV/FCF]	14.25	21.90
EV to Market Cap	0.90	65.67
EV to Revenue	2.42	227.32
Price to Book Value [P/B]	4.41	22.34
Price to Earnings [P/E]	25.79	-11.77

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	-21.91	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	45.26	-27.13
Cash and Equivalents Growth (1y) %	60.00	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-57.88	-46.93
EBITDA Growth (1y) %	1.64	-1.68
EBIT Growth (1y) %	-18.73	-56.45
EBT Growth (1y) %	-10.95	-12.70
EPS Growth (1y) %	-55.56	-28.31
FCF Growth (1y) %	19.69	-31.90
Gross Profit Growth (1y) %	12.87	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	1.23	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	2.46	3.85
Current Ratio	4.41	7.27
Debt to Equity Ratio	0.08	0.40
Interest Cover Ratio	-21.91	841.00
Times Interest Earned	-21.91	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	17.60	-18,234.31
EBIT Margin %	13.54	-18,580.80
EBT Margin %	14.16	-19,488.74
Gross Margin %	82.00	-7.59
Net Profit Margin %	10.40	-19,439.22

Mimedx Group, Inc. (NASDAQ: MDXG)