One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Treace Medical Concepts, Inc.
TMCI · NMS · Healthcare · Medical Devices
Current price
$4.57
52-week range
$1.17 - $7.61
Market cap
$297.21M
Balance sheet
Distressed
-10.18x Concerning
Net debt $27.43M. Interest coverage shows how many times profit covers the interest bill.
What stands out
0 Rewards
2 Risks
0 rewards · 2 risks
- Risk Return on equity was -72.0% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -24.6% to -33.0% over 3 years.
What this company does
Treace Medical Concepts, Inc.
Treace Medical Concepts sells a specialized surgical kit, called the Lapiplasty System, that helps surgeons fix foot bunions more effectively. The company earns revenue (the money it brings in from sales) primarily by selling these kits and related implants to hospitals. Because their method is patented and designed to address the root cause of the deformity, they have a unique product for a very common medical procedure.
How the company got here
Treace Medical Concepts was founded in 2013 by John T. Treace to solve a common problem: traditional bunion surgeries often had high failure rates. [3] The company's big breakthrough was creating the Lapiplasty system, a new method and set of tools designed to correct the root cause of the bunion in all three dimensions. [3, 5] This new approach gained traction with surgeons, leading the company to go public with an IPO (Initial Public Offering, the first time a private company sells its stock to the public) in 2021 to raise money for further growth. [2, 3]
What it actually does
The company is a medical device maker focused on creating and selling tools and implants for foot and ankle surgery. [3, 6] Think of them as providing a complete toolkit for surgeons who fix bunions and other foot problems. [5] Their main product is a patented system called the Lapiplasty 3D Bunion Correction System, which includes specially designed instruments and implants (small plates and screws that stay in the body) to perform a more effective type of bunion surgery. [4, 5] They sell these systems directly to hospitals and surgery centers in the United States. [2]
Surgical Systems for Foot & Ankle Correction
The company operates as one main business focused on selling its surgical systems. Its flagship product is the Lapiplasty System for bunion correction, which makes up the bulk of its business. [2] Hospitals and surgical centers purchase kits that include the necessary single-use implants and instruments for each procedure. [4] The company has also expanded its offerings to include the Adductoplasty System, which addresses other midfoot deformities, showing its strategy to be a go-to provider for complex foot surgeries, not just a one-product company. [9]
What management is betting on now
The company's main strategy is to get more surgeons in the U.S. to adopt its Lapiplasty procedure for bunion surgery. [2] They are heavily focused on surgeon training and education to show the benefits of their three-dimensional correction technique over older methods. [8] Management is also betting on expanding their product line to treat other foot problems that are often related to bunions. [9] By creating a broader platform of foot and ankle surgical solutions, they aim to increase the amount of business they do with each surgeon they train. [2]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-14.71M
FY2024 Q4
$-7.28M
FY2025 Q1
$655.00K
FY2025 Q2
$-7.82M
FY2025 Q3
$-11.90M
FY2025 Q4
$-10.42M
FY2026 Q1
$4.18M
FY2026 Q2
$-6.90M
Revenue
$45.38M
Net income
$-15.87M
Diluted EPS
-0.24
Operating cash flow
$-4.70M
Free cash flow
$-6.90M
Fetching…
Sources
Revenue
$47.20M
Net income
$-17.96M
Diluted EPS
-0.28
Operating cash flow
$7.24M
Free cash flow
$4.18M
Fetching…
Sources
Revenue
$62.52M
Net income
$-9.39M
Diluted EPS
-0.14
Operating cash flow
$-8.03M
Free cash flow
$-10.42M
Fetching…
Sources
Revenue
$50.21M
Net income
$-16.29M
Diluted EPS
-0.26
Operating cash flow
$-9.09M
Free cash flow
$-11.90M
Fetching…
Sources
Revenue
$47.39M
Net income
$-17.40M
Diluted EPS
-0.28
Operating cash flow
$-3.05M
Free cash flow
$-7.82M
Fetching…
Sources
Revenue
$52.57M
Net income
$-15.92M
Diluted EPS
-0.25
Operating cash flow
$4.20M
Free cash flow
$655.00K
Fetching…
Sources
Revenue
$68.71M
Net income
$-501.00K
Diluted EPS
-0.01
Operating cash flow
$-4.21M
Free cash flow
$-7.28M
Fetching…
Sources
Revenue
$45.09M
Net income
$-15.36M
Diluted EPS
-0.25
Operating cash flow
$-11.84M
Free cash flow
$-14.71M
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $4.57
We couldn't calculate a fair value right now.
Is it drowning in debt?
Distressed
Net debt $27.4M. Interest coverage -10.2x.
Net debt
$27.43M
Interest coverage
-10.18x
Treace Medical Concepts, Inc. is healthier than 0 of 1 peers on balance-sheet leverage.
Distressed
Worse cushion
Baseline
Better cushion
TMCI
BASELINE
Treace Medical Concepts, Inc.
Total debt $73.05M Interest coverage -10.18x This is the baseline the peer rows are being compared against.
What you should know
The case for and against TMCI
0 Rewards
2 Risks
Rewards
Risks
-
Return on equity was -72.0% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -24.6% to -33.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-5.38x
P/B
4.39x
P/S
1.45x
EV/EBITDA
-7.09x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
79.5%
Operating margin
-33.0%
Net margin
-29.0%
ROE
-72.0%
ROA
-17.3%
Health
Liquidity and balance-sheet strength
Debt / equity
1.08x
Current ratio
2.90x
Quick ratio
1.80x
Total debt
$73.05M
Total cash
$45.62M
Growth
How the business has been compounding
Revenue TTM
$205.31M
Revenue 5Y CAGR
22.5%
EPS TTM
-0.92
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-14.58M
Free CF TTM
$-29.49M
FCF margin
-14.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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