Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

TransMedics Group (TMDX-Q) has been performing well with its flagship product, the Organ Care System Lung (OCS Lung), providing a potential treatment for patients with end-stage lung failure. However, there are potential risks related to regulatory uncertainties, approvals, and competition from other companies. The company is currently valued at $2.4B and is expected to be profitable in the near future. Its business model is intriguing, and there appears to be demand for the technology, although there is room for further improvement in its fundamentals. Overall, it is a speculative, high-risk play with potential for growth in the organ transplant sector.

Consensus
Positive
Valuation
Fair Value
PARTIAL BUY
TransMedics Group
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Certainly the stock is expensive on valuation. We have several reasons for liking it: 1) Execution has been excellent. TMDX has managed its growth very well and continually underestimates its growth 2) It thinks long term. Buying aircraft scared investors but it was absolutely the right move to expand its market. 3) We think it has a VERY strong moat, with FDA approval on multiple organs. It is a better solution and results in better patient outcomes. Organs in better shape means an expanded market (many transplants fail as organs only last so long with prior methods). 4) Profitability is now occurring on an adjusted basis, and will likely accelerate. 5) The market opportunity remains quite large, but is not likely big enough to attract giant, stronger competitors. 6) There is long term potential for new markets: i.e. keeping damaged organs alive outside the body for 'fixing' and then transplanting back into the original patient. This is a ways off but obviously would be huge if it can be done (no rejection issues etc.). 7) A private competitor Paragonix was recently acquired, and TMDX is much bigger and better (our belief). 8) Its momentum and larger market cap should attract more new investors to the story; it is still 'small' by healthcare company standards. Now, don't get us wrong: if growth were to slow substantially or there was some other 'problem' the stock would take a big hit, for sure. But we have been following it for a year and remain confident in its future. 
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medical services
BUY
TransMedics Group
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We quite like TMDX and believe it should do well over time. Its small size adds risk, but it seems to have a better mousetrap for organ transplant. Sales growth is very high and it was profitable last quarter. It has approval for several organs and will add more over time. Its solution allows for a better patient outcome. There are always complaints about costs, and the sector is a hot political potato. But we like what the company has accomplished so far and the quarter and guidance are solid. The market size is not huge, but big enough for the company, and 'probably' small enough to keep the big players from bothering. We would consider TMDX to be one of our better high risk ideas right now. 
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medical services
BUY
TransMedics Group

They last reported good quarter. He has some knowledge of the organ transplant sector from his charity work, and feels this company is doing well.

medical services
RISKY
TransMedics Group
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

TMDX's flagship product is the Organ Care System Lung (OCS Lung) which can be used to treat patients with end-stage lung failure who are waiting for a lung transplant. It claims that its technology has advantages over the traditional method of placing organs on ice. There are risks of regulatory uncertainties, approvals, and competition from companies like FREY, MDT, CLSN, and others.

The company is a $2.4B stock, which is expected to be profitable over the next year or so, and its historical sales growth rate has been excellent. It has improved its profit margins, but trades at a high valuation of 7.7X forward sales. It does not generate positive free cash flow and has a small balance sheet. We think the name looks interesting, its business model is intriguing and there appears to be demand for the technology, however, its fundamentals could see further improvement. As a more speculative, high-risk play, we would be OK with the name, while considering small-cap risks, position sizing, and the volatility of the underlying industry.
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medical services
BUY
TransMedics Group

Transplant therapy is so vital to America that it transcends the earnings. Likes the story.

medical services
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TransMedics Group(TMDX-Q) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 4

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 4

Stockchase rating for TransMedics Group is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

TransMedics Group(TMDX-Q) Frequently Asked Questions

What is TransMedics Group stock symbol?

TransMedics Group is a American stock, trading under the symbol TMDX-Q on the NASDAQ (TMDX). It is usually referred to as NASDAQ:TMDX or TMDX-Q

Is TransMedics Group a buy or a sell?

In the last year, 4 stock analysts published opinions about TMDX-Q. 4 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for TransMedics Group.

Is TransMedics Group a good investment or a top pick?

TransMedics Group was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for TransMedics Group.

Why is TransMedics Group stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is TransMedics Group worth watching?

In the last year, there was no coverage of TransMedics Group published on Stockchase.

What is TransMedics Group stock price?

On 2024-10-03, TransMedics Group (TMDX-Q) stock closed at a price of $143.8.