EDAP TMS S.A Reports Third Quarter Earnings for FY2023
November 21, 2023
🌥️Earnings Overview
On November 9 2023, EDAP TMS S.A ($NASDAQ:EDAP) revealed their earnings report for the third quarter of FY2023, which ended on September 30 2023. Total revenue amounted to EUR 11.7 million, representing a 4.1% decrease from Q3 FY2022. Net income was EUR -4.0 million, a notable decrease from the prior year’s EUR 0.0 million.
Share Price
The company’s stocks opened at $6.9 and closed at $5.3, plunging by 26.9% from its last closing price of 7.2. This significant decline was a result of a weaker than expected set of financial results for the company as well as a decline in investor sentiment. This was mainly attributed to an increase in operating expenses and costs due to the implementation of new technology. This was mainly driven by the economic uncertainty caused by the pandemic, as well as the rising cost of raw materials.
These results have led to a significant decline in the company’s share price, with investors expressing their concern over the current outlook of the company. While the company has stated that it is taking measures to reduce costs and improve efficiency, it will take time for these efforts to be reflected in its financial results. 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 |
| 56.53 | -21.27 | -31.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for EDAP. More…
| Operations | Investing | Financing |
| -16.9 | 13.86 | -0.91 |
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 |
| 93.27 | 33.18 | 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 |
| 13.9% | 77.9% | -27.5% |
| FCF Margin | ROE | ROA |
| -37.0% | -13.6% | -10.4% |
Analysis
At GoodWhale, we conducted an analysis of EDAP TMS S.A’s wellbeing. Our Star Chart showed that EDAP TMS S.A is strong in asset, profitability, medium in growth and weak in dividend. We classified them as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. This type of company might be of interest to long-term investors looking for stability with the potential for growth. Moreover, EDAP TMS S.A has an intermediate health score of 6/10 with regard to its cashflows and debt, meaning it might be able to sustain future operations in times of crisis. 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
EDAP TMS S.A has recently released their financial results for the third quarter of FY2023, and reported total revenue of EUR 11.7 million and net income of EUR -4.0 million. This represents a 4.1% decline in total revenue compared to the same period of the previous year and a negative net income, compared to the 0.0 million of the prior year. Consequently, the stock price of EDAP TMS S.A decreased on the same day, leading to investors being cautious when considering investing in the company. Investors should pay close attention to EDAP TMS S.A’s financial performance and outlook in order to assess their investment potential.
