TransMedics Group, Inc.

Rank #282Hypergrowth

TMDX · Nasdaq · Healthcare

TransMedics Group, Inc. (TMDX) — Rank #282 by gross profitability (GP/assets 0.25) · ROE 36.7% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0001756262 · all metrics point-in-time as of the filing date.

About

TransMedics Group, Inc., a commercial-stage medical technology company, engages in transforming organ transplant therapy for end-stage organ failure patients in the United States and internationally.

The company provides Organ Care System (OCS), a portable organ perfusion, optimization, and monitoring system that utilizes its proprietary and customized technology to replicate near-physiologic conditions for donor organs outside of the human body. Its OCS includes OCS LUNG for the preservation of standard criteria donor lungs for double-lung transplantation; OCS Heart, a technology for preservation of DBD donor hearts deemed unsuitable due to limitations of cold storage and for ex vivo reanimation, functional monitoring, and beating-heart preservation of donation-after-circulatory-death hearts; and OCS Liver for the preservation of DBD and DCD of donor livers. The company also developed national OCS program, a turnkey solution for outsourced organ retrieval; and provides OCS organ management and logistics services, including aviation and ground transportation, and other coordination activity.

The company was founded in 1998 and is headquartered in Andover, Massachusetts.

Industry: Medical Devices
Sector: Healthcare
State: MA
Filer Category: Large accelerated filer
Fiscal Year End: December 31
Website: transmedics.com

Price History

TMDX+151.5% · +20.3% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$3.11B

P/E (annual)

18.5

P/S (annual)

5.1

P/B

6.0

P/OCF (annual)

16.1

Shareholder Yield

-15.1%

Employees

898

Industry

Medical Devices

Exchange

Nasdaq

Signal Flags

3 green1 yellow

Operating leverage expandingOperating income growing faster than revenue

Deferred revenue growingRevenue and deferred revenue both growing — retention signal

Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak

Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

Quality Profile

Profitability

1/1 pass

GP / assets

0.25

Return on equity

36.7%

Gross margin trend

PASS

Safety

1/1 pass

Balance-sheet safety

PASS

Debt / equity

1.83

Current ratio

6.62×

Net cash

$471.11M

Cash Flow

2/3 pass

Positive FCF

PASS

Cash-backed earnings

WARN

Accruals healthy

PASS

SBC / revenue

6.1%

Growth

1/2 pass

Revenue growth

37.1%

Piotroski F-Score

N/A

Share dilution

15.1%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

12.0%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 15.1% — per-share value needs a total required return of 27.1% once share-count change is priced in.

vs. own 6-year median revenue growth: 59.9%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

7.4%

r = 10% (base)

12.0%

r = 12%

15.9%

Net debt / market cap: -12.9%

Note: current FCF margin is 1.7σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $133.6M3Y mean FCF: -$37.4M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

9.2xCheap

5.8xmed 11.9x24.7x

P / B

Price / book value per share

11.8xFair

7.4xmed 11.8x21.0x

P / GP

Price / gross profit per share

15.4xCheap

9.7xmed 18.7x35.3x

Earnings bubble check

Current margins may be above sustainable levels — a P/E based on peak earnings can overstate cheapness.

FCF margin22.1% now vs -137.5%–22.1% 10yr range

1.7σ above average

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.25

Primary signal (Novy-Marx).

28th pctl of 37 SIC 38 peers

Return on equity

36.7%

Gross margin

59.9%

50th pctl of 37 SIC 38 peers

Revenue growth (YoY)

37.1%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

	2022	2023	2024	2025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

86.4%

Revenue CAGR (5Y)

88.2%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.83

0th pctl of 35 SIC 38 peers (best = lowest)

Current ratio

6.62×

94th pctl of 36 SIC 38 peers

Quick ratio

6.06×

Net cash

$471.11M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$133.59M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.30

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

6.1%

Stock-based comp intensity.

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

2020-2021

2022-2025

20202025

Startup

Hypergrowth

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