EDAP Intrinsic Stock Value – EDAP TMS S.A Reports Second Quarter of Fiscal Year 2023 Earnings Results
August 26, 2023
🌥️Earnings Overview
For the second quarter of Fiscal Year 2023, EDAP TMS S.A ($NASDAQ:EDAP) reported total revenue of EUR 14.3 million, a 0.9% increase from the same quarter of the previous year. However, their reported net income for this period was EUR -4.7 million, compared to the 1.8 million reported in the same quarter of the prior year.
Stock Price
According to the report, the company’s stock opened at $7.8 and closed at $8.1, down by 0.1% from the previous closing price of 8.1. With strong revenue and net income growth, EDAP TMS S.A is on track to have another successful year in 2023. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for EDAP. More…
| Total Revenues | Net Income | Net Margin |
| 57.03 | -17.31 | -27.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for EDAP. More…
| Operations | Investing | Financing |
| -12.97 | -3.84 | 20.87 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for EDAP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 95.33 | 32.11 | 1.94 |
Key Ratios Snapshot
Some of the financial key ratios for EDAP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.4% | 77.9% | -21.3% |
| FCF Margin | ROE | ROA |
| -29.4% | -10.6% | -8.0% |
Analysis – EDAP Intrinsic Stock Value
At GoodWhale, we have conducted an analysis of EDAP TMS S.A.’s financials and have calculated the intrinsic value of their share to be around $7.9 using our proprietary Valuation Line. Currently, EDAP TMS S.A. stock is traded at $8.1, which is a fair price but is overvalued by 2.3%. To ensure that our analysis is accurate, we took into consideration a variety of factors such as the company’s past financial performance, market trends, and future prospects. Our conclusion is that the current market price is slightly overvalued compared to the calculated intrinsic value, though it remains fair. More…
Peers
Edap TMS SA operates in a competitive industry, where it faces a range of competitors including El.En. SpA, BATM Advanced Communications Ltd, and Theralase Technologies Inc. All of these companies are driven to develop new products, increase market share, and position themselves as leaders in the field. As such, Edap TMS SA must constantly strive to differentiate its products and services in order to remain competitive.
– El.En. SpA ($LTS:0RH2)
El.En. SpA is a leading manufacturer and distributor of laser products for the medical, industrial and research sectors. The company has a market capitalization of 960.65M as of 2023, making it one of the larger companies in its sector. Additionally, El.En. SpA has a Return on Equity of 17.74%, showing that the company is utilizing its resources to generate a healthy return for its investors. In other words, the company is doing well and is worth investing in.
– BATM Advanced Communications Ltd ($LSE:BVC)
BATM Advanced Communications Ltd is an Israeli-based company that specializes in the development of networking and cyber security solutions. It provides a wide range of solutions for telecom operators, medical institutions, defense companies, financial organizations, and more. As of 2023, the company has a market capitalization of 96.8 million dollars and a Return on Equity of 2.07%. This indicates that shareholders are benefitting from the company’s performance and that the company is financially secure. The company’s focus on developing innovative solutions for its customers has enabled it to remain competitive in the market and achieve a strong financial position.
– Theralase Technologies Inc ($TSXV:TLT)
Theralase Technologies Inc is a Canadian biotechnology company that focuses on the research, development and commercialization of light activated PhotoDynamic Compounds (PDCs) and their associated drug formulations. Theralase Technologies Inc currently has a market cap of 58.46M as of 2023, and its Return on Equity (ROE) is -113.03%. This indicates that the company is not generating enough returns from its invested capital. As a biotechnology firm, Theralase Technologies Inc has the potential to develop products with high market demand, and has the potential to realize higher returns in the future.
Summary
Despite a slight increase in quarterly revenue, EDAP TMS S.A reported a net loss of 4.7 million euros for the second quarter of 2023. This was largely due to increased costs, such as personnel and administrative expenses, which outweighed the small gain in revenue. Investors should carefully assess the company’s financials and growth prospects before making any investment decision. Short-term investors should be aware of the current risk posed by the firm’s negative net income, while long-term investors should consider the potential for future growth.
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