📊 TMDX Key Takeaways
Is TransMedics Group, Inc. (TMDX) a Good Investment?
TransMedics demonstrates exceptional fundamental strength with 37% revenue growth, industry-leading gross margins of 60%, robust free cash flow generation of $134M, and a fortress balance sheet with $488M cash and minimal debt. The company's 40% ROE and strong operating cash conversion indicate a high-quality business model, though sustainability of net income depends on clarifying the material gap between operating ($109M) and net income ($190M), which appears driven by non-operating gains rather than core operations.
Why Buy TransMedics Group, Inc. Stock? TMDX Key Strengths
- Strong revenue growth of 37.1% YoY with excellent gross margins of 59.9% indicating pricing power and operational efficiency
- Exceptional cash generation with $192.8M operating cash flow and 22.1% free cash flow margin, demonstrating business quality
- Fortress balance sheet: $488.4M cash, 0.12x debt/equity, 7.14x current ratio, and 15x interest coverage providing financial flexibility
- Outstanding capital returns with 40.2% ROE and 17.8% ROA reflecting efficient capital deployment
TMDX Stock Risks: TransMedics Group, Inc. Investment Risks
- Material disconnect between operating income ($108.6M) and net income ($190.3M) suggests 436% net income growth driven by non-operating items rather than core business expansion, raising sustainability concerns
- Medical device sector faces regulatory constraints, FDA approval cycles, and reimbursement pressures that could impact future growth
- Customer concentration risk unknown but typical in medical device companies; loss of key customers could materially impact results
Key Metrics to Watch
- Operating income trend and composition of non-operating gains - critical to understanding sustainable profitability
- Revenue growth sustainability - whether 37% growth rate can be maintained in mature markets
- Operating cash flow and free cash flow generation - most reliable measure of business fundamentals
- Gross margin maintenance and operating leverage as company scales
TransMedics Group, Inc. (TMDX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 22.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 7.14x current ratio provides a solid financial cushion.
TMDX Profit Margin, ROE & Profitability Analysis
TMDX vs Healthcare Sector: How TransMedics Group, Inc. Compares
How TransMedics Group, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is TransMedics Group, Inc. Stock Overvalued? TMDX Valuation Analysis 2026
Based on fundamental analysis, TransMedics Group, Inc. appears fundamentally strong relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
TransMedics Group, Inc. Balance Sheet: TMDX Debt, Cash & Liquidity
TMDX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: TransMedics Group, Inc.'s revenue has grown significantly by 21% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.77 indicates the company is currently unprofitable.
TMDX Revenue Growth, EPS Growth & YoY Performance
TMDX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $108.8M | $4.2M | $0.12 |
| Q2 2025 | $114.3M | $12.2M | $0.35 |
| Q1 2025 | $96.9M | $12.2M | $0.35 |
| Q3 2024 | $66.4M | -$1.0M | $0.12 |
| Q2 2024 | $52.5M | -$1.0M | $-0.03 |
| Q1 2024 | $41.6M | -$2.6M | $-0.08 |
| Q3 2023 | $25.7M | -$1.0M | $-0.25 |
| Q2 2023 | $20.5M | -$1.0M | $-0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
TransMedics Group, Inc. Dividends, Buybacks & Capital Allocation
TMDX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for TransMedics Group, Inc. (CIK: 0001756262)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TMDX
What is the AI rating for TMDX?
TransMedics Group, Inc. (TMDX) has an AI rating of BUY with 82% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TMDX's key strengths?
Claude: Strong revenue growth of 37.1% YoY with excellent gross margins of 59.9% indicating pricing power and operational efficiency. Exceptional cash generation with $192.8M operating cash flow and 22.1% free cash flow margin, demonstrating business quality.
What are the risks of investing in TMDX?
Claude: Material disconnect between operating income ($108.6M) and net income ($190.3M) suggests 436% net income growth driven by non-operating items rather than core business expansion, raising sustainability concerns. Medical device sector faces regulatory constraints, FDA approval cycles, and reimbursement pressures that could impact future growth.
What is TMDX's revenue and growth?
TransMedics Group, Inc. reported revenue of $605.5M.
Does TMDX pay dividends?
TransMedics Group, Inc. does not currently pay dividends.
Where can I find TMDX SEC filings?
Official SEC filings for TransMedics Group, Inc. (CIK: 0001756262) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TMDX's EPS?
TransMedics Group, Inc. has a diluted EPS of $4.87.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TMDX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, TransMedics Group, Inc. has a BUY rating with 82% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is TMDX stock overvalued or undervalued?
Valuation metrics for TMDX: ROE of 40.2% (sector avg: 15%), net margin of 31.4% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy TMDX stock in 2026?
Our dual AI analysis gives TransMedics Group, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is TMDX's free cash flow?
TransMedics Group, Inc.'s operating cash flow is $192.8M, with capital expenditures of $59.3M. FCF margin is 22.1%.
How does TMDX compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 31.4% (avg: 12%), ROE 40.2% (avg: 15%), current ratio 7.14 (avg: 2).
Why is TMDX's return on equity (ROE) so high?
TransMedics Group, Inc. has a return on equity of 40.2%, significantly above the Healthcare sector average of 15%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 31.4% net margin.