Latest Ratios: P/E Ratio 17.9x · EV/EBITDA 22.0x · ROE 54.2%. (2016–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.0B | $4.9B | $2.2B | $2.6B | $1.8B | $529M | $492M | $270M | — | — | — |
| Enterprise Value | $3.0B | $4.9B | $2.4B | $2.7B | $1.7B | $547M | $502M | $284M | — | — | — |
| P/E Ratio → | 17.86 | 24.98 | 61.73 | — | — | — | — | — | — | — | — |
| P/S Ratio | 4.97 | 8.15 | 4.97 | 10.62 | 19.52 | 17.49 | 19.17 | 11.44 | — | — | — |
| P/B Ratio | 7.46 | 10.42 | 9.61 | 18.71 | 9.74 | 7.80 | 4.73 | 4.94 | — | — | — |
| P/FCF | 22.51 | 36.92 | — | — | — | — | — | — | — | — | — |
| P/OCF | 15.59 | 25.57 | 44.99 | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.11 | 5.38 | 11.12 | 18.09 | 18.09 | 19.57 | 12.04 | — | — | — |
| EV / EBITDA | 22.01 | 36.19 | 41.52 | — | — | — | — | — | — | — | — |
| EV / EBIT | 27.52 | 40.50 | 47.37 | — | — | — | — | — | — | — | — |
| EV / FCF | — | 36.78 | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.9% | 59.9% | 59.4% | 63.8% | 69.8% | 69.9% | 64.9% | 58.7% | 44.1% | 27.8% | 12.3% |
| Operating Margin | 17.9% | 17.9% | 8.5% | -11.9% | -33.6% | -130.3% | -102.9% | -125.4% | -155.5% | -265.8% | -370.2% |
| Net Profit Margin | 31.4% | 31.4% | 8.0% | -10.4% | -38.8% | -146.1% | -112.1% | -142.1% | -182.5% | -271.0% | -387.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 54.2% | 54.2% | 19.4% | -15.4% | -28.4% | -51.5% | -36.3% | -134.7% | — | — | -62.0% |
| ROA | 20.3% | 20.3% | 4.7% | -5.1% | -17.6% | -30.8% | -22.3% | -45.5% | -60.0% | -43.8% | -41.4% |
| ROIC | 18.8% | 18.8% | 8.4% | -13.8% | -33.7% | -29.6% | -21.7% | -57.4% | -176.4% | — | — |
| ROCE | 12.6% | 12.6% | 5.4% | -6.4% | -17.2% | -31.3% | -23.0% | -49.8% | -72.7% | -54.7% | -47.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.99 | 0.99 | 2.27 | 3.76 | 0.36 | 0.65 | 0.33 | 0.62 | — | — | 0.22 |
| Debt / EBITDA | 3.46 | 3.46 | 9.05 | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.04 | 0.79 | 0.88 | -0.71 | 0.27 | 0.10 | 0.26 | — | — | -0.04 |
| Net Debt / EBITDA | -0.14 | -0.14 | 3.17 | — | — | — | — | — | — | — | — |
| Debt / FCF | — | -0.14 | — | — | — | — | — | — | — | — | — |
| Interest Coverage | 8.80 | 8.80 | 3.48 | -1.47 | -8.71 | -10.40 | -6.21 | -6.70 | -8.68 | -18.39 | -23.58 |
Net cash position: cash ($488M) exceeds total debt ($470M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 7.14 | 7.14 | 8.30 | 9.30 | 10.66 | 5.11 | 12.36 | 6.21 | 2.77 | 3.12 | 5.90 |
| Quick Ratio | 6.59 | 6.59 | 7.52 | 8.49 | 9.79 | 4.47 | 11.35 | 5.51 | 2.03 | 2.39 | 5.23 |
| Cash Ratio | 5.47 | 5.47 | 5.62 | 7.19 | 8.50 | 3.98 | 10.58 | 5.01 | 1.61 | 2.26 | 5.05 |
| Asset Turnover | — | 0.57 | 0.55 | 0.34 | 0.34 | 0.22 | 0.17 | 0.22 | 0.31 | 0.21 | 0.11 |
| Inventory Turnover | 4.96 | 4.96 | 3.85 | 1.98 | 1.37 | 0.61 | 0.75 | 0.87 | 0.79 | 0.70 | 0.86 |
| Days Sales Outstanding | — | 50.81 | 80.78 | 96.04 | 107.83 | 71.57 | 97.72 | 101.42 | 96.40 | 43.93 | 81.07 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.6% | 4.0% | 1.6% | — | — | — | — | — | — | — | — |
| FCF Yield | 4.4% | 2.7% | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $41M | $35M | $33M | $30M | $28M | $25M | $14M | $19M | $14M | $14M |
Includes 30+ ratios · 10 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying TMDX stock.
TransMedics Group, Inc.'s current P/E ratio is 17.9x. The historical average is 43.4x.
TransMedics Group, Inc.'s current EV/EBITDA is 22.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 38.9x.
TransMedics Group, Inc.'s return on equity (ROE) is 54.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -31.8%.
Based on historical data, TransMedics Group, Inc. is trading at a P/E of 17.9x. Compare with industry peers and growth rates for a complete picture.
TransMedics Group, Inc. has 59.9% gross margin and 17.9% operating margin. Operating margin between 10-20% is typical for established companies.
TransMedics Group, Inc.'s Debt/EBITDA ratio is 3.5x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Leverage surge and capex intensity
Metrics are mathematically derived from official filings.
Premium Pricing Amid Deceleration
TMDX trades at 18.2x trailing earnings but 57.1x forward earnings, per reported multiples, implying the market expects a sharp rebound from recent margin compression despite revenue growth slowing to 20.7%.
The wide gap between trailing and forward P/E suggests analysts anticipate a significant earnings recovery, likely driven by margin normalization rather than sustained growth. However, with EV/EBITDA at 22.4x versus peers like STVN at 19.8x, the premium may already price in operational improvements that have yet to materialize. Investors should monitor whether the forward estimates are achievable given the recent operating margin volatility.
Margin Compression from Investment Surge
Gross margin held near 59% in 2026Q2, but operating margin fell to 12.5% from 23.2% a year earlier, per reported financials, as R&D spending jumped 106% and capex reached 23% of revenue.
The stability in gross margin indicates pricing power, yet the sharp decline in operating margin suggests that increased investment in R&D and capacity is temporarily suppressing profitability. Net margin in 2025Q4 was inflated to 65.6% by non-operating gains, so the underlying earning power is better reflected by operating margin, which has been volatile. This investment phase may pressure near-term profitability, but it could support future growth if the expansion yields higher volumes.
Returns Diluted by Rapid Capital Base
ROIC fell to 2.0% in 2026Q2 from a peak of 6.0% in 2025Q2, per reported figures, as invested capital expanded faster than operating income, indicating that new capacity is not yet generating proportional returns.
The decline in ROIC, despite stable gross margins, suggests that the company is investing heavily in assets that have not yet contributed to earnings. ROE also dropped to 2.9% in 2026Q2 from 25.4% in 2025Q4, partly due to a one-time gain in that quarter, but the trend indicates that equity growth is outpacing net income. If the capacity build-out does not translate into higher revenue and margins, returns on capital may remain subdued.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 59 days in 2026Q2 from 155 days in 2024Q1, per reported data, as DSO improved but DPO collapsed to 49 days, indicating reduced supplier leverage and faster cash outflows.
The improvement in DSO from 68 to 47 days shows better receivables collection, but the dramatic drop in DPO from 27 to 49 days (note: DPO increased from 13 to 49 days in 2026Q2) suggests the company is paying suppliers more quickly, possibly to secure supply or due to terms. This, combined with high inventory days, has kept the CCC elevated, straining cash flow. Asset turnover remains low at 0.13, reflecting the heavy asset base, and efficiency gains are needed to improve returns.
Debt-Fueled Expansion Stretches Coverage
Debt-to-equity rose to 1.67 in 2026Q2 from 0.99 in 2025Q4, per reported balance sheet data, while interest coverage fell to 3.69x from 7.45x, indicating reduced comfort in servicing debt.
The increase in leverage is strategic, funding a surge in capex to 23% of revenue, but it has weakened interest coverage, which is now at its lowest since 2024Q4. D/EBITDA also climbed to 32.6x, though this is distorted by depressed EBITDA; on a normalized basis, the ratio would be lower. The company holds $472.7M in cash, covering over half of total debt, providing a buffer, but if growth continues to decelerate, the debt service burden could become more onerous.
Liquidity Cushion Despite Cash Burn
Current ratio remains strong at 6.62 in 2026Q2, per reported figures, with quick ratio at 6.07, indicating ample short-term assets to cover liabilities even as free cash flow turned negative.
The high current ratio is supported by a large cash balance, which provides a significant cushion against operational shocks. However, negative free cash flow in recent quarters, driven by heavy capex and working capital needs, could erode this liquidity if sustained. The company's ability to fund its expansion without further dilutive or debt financing depends on improving cash conversion and achieving positive FCF.
Misapplied Metric: P/E on Distorted Earnings
The trailing P/E of 18.2x is misleading because 2025Q4 net income included a one-time gain, per reported financials, making the ratio appear artificially low and obscuring the true earnings power.
Investors often use P/E to gauge value, but for TMDX, the trailing earnings are distorted by non-operating items, as seen in the 65.6% net margin in 2025Q4. A more appropriate metric is EV/EBITDA or a normalized P/E that excludes one-time gains. Additionally, the forward P/E of 57.1x highlights the market's expectation of a sharp earnings rebound, which may not materialize if margin pressures persist. Analysts should focus on operating margin trends and cash flow generation rather than headline P/E.