Shares of TransMedics (TMDX, Financial) have dropped 5.03% in the past week. This decline is likely due to increased volatility following the stock's remarkable doubling in value over the last year.
TransMedics' one-year beta, measuring relative volatility, rose from 1.6 to 5.1. A beta above 1 indicates higher volatility, and 5.1 shows significant market swings for the stock.
The percentage of shares outstanding held short increased from 4% to 18% over the last three years, indicating rising market pessimism about the company's future performance.
Despite this volatility, TransMedics' price-to-sales (P/S) ratio has decreased from 30 to 14 since 2021, driven by an average sales growth rate of 147% over that period. The company has also achieved positive net income and free cash flow in the last year.
Notably, this profitability came even after acquiring and integrating a charter flight operator and several airplanes to enhance its national transplant logistics network.
The GF Value of TransMedics (TMDX, Financial) is estimated at $234.99, with a potential value trap warning. Investors should consider this valuation carefully before making decisions. For more details, you can visit the GF Value page.
However, there are several warning signs to be aware of. The Beneish M-Score of 4.83 suggests potential financial manipulation. Additionally, the Sloan Ratio indicates poor quality of earnings, and insider selling has been significant.
On the positive side, the company boasts a strong Altman Z-Score of 5.98, indicating financial strength. TransMedics' operating margin is also expanding, which is a good sign for profitability.
In summary, while TransMedics (TMDX, Financial) shows potential, the stock comes with significant risks and volatility. Investors should weigh both the positive and negative signals before making any investment decisions.
