Tactile Systems Technology Inc (TCMD) stock analysis
Close on Nov 12, 2026Market cap $607.53MP/E 26.0Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Solid16 of 30 checks passed
Tactile Systems Technology passes 16 of the 30 checks behind our score; 8 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 3/6
- Growth
- 3/6
- Past performance
- 4/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 15.3%, above the 10% that usually covers the cost of capital.
No debt
Tactile Systems Technology has no borrowings on its latest balance sheet.
Revenue growing 10%+ a year
Revenue grew 10.1% a year over the last three fiscal years.
Interest well covered
Operating income covers interest expense 431.5 times.
What to watch
Margin of safety under 20%
The price is 6.6% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $27.13 is above our fair value estimate of $25.46.
Return on equity under 15%
Return on equity was 11.0% over the last twelve months and averaged 2.3% over five years; we look for 15% on both.
P/E above its 5-year median
Tactile Systems Technology's P/E of 26.3 is above its own 5-year median of 21.7.
Valuation3/6
P/E above its 5-year median
Tactile Systems Technology's P/E of 26.3 is above its own 5-year median of 21.7.
P/E below the industry
Tactile Systems Technology's P/E of 26.3 is below the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.
EV/EBITDA below its 5-year median
Tactile Systems Technology's EV/EBITDA of 13.3 is below its 5-year median of 13.3.
P/B below the industry
Tactile Systems Technology's price-to-book of 2.70 is below the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.
Trading above fair value
The share price of $27.13 is above our fair value estimate of $25.46.
Margin of safety under 20%
The price is 6.6% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 10.1% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 14.4% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.
Guidance lowered
Tactile Systems Technology lowered its full year 2026 total revenue outlook on Aug 10, 2026.
Gross margin improving
Gross margin was 77.0% over the last twelve months, against 75.0% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 11.0% over the last twelve months and averaged 2.3% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 15.3%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Tactile Systems Technology's return on equity of 11.0% is above the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 6.7% over the last twelve months, against a 5-year average of 1.8%.
Net margin above the industry
Tactile Systems Technology's net margin of 6.7% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.
Financial health6/6
No debt
Tactile Systems Technology has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
Operating income covers interest expense 431.5 times.
Short-term assets cover short-term debts
Current assets are 3.51 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 8.18; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Tactile Systems Technology has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$25.46
The share price is 7% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 24.7× | 21.7× | 27.7× | $25.41 | 40% |
| EV/EBITDA | 15.0× | 13.3× | 16.7× | $30.10 | 35% |
| P/B | 2.6× | 2.0× | 3.2× | $26.14 | 10% |
| Earnings power | 11.6% cost of equity | – | – | $14.29 | 15% |
| Fair value | $25.46 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 21.7
- Surgical, Medical, and Dental Instruments and Supplies median 27.7
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Medium risk
- Average value traded per day
- $5.51M
- Value traded per 1% price move
- $3.48M
Downside
Medium risk
- Typical loss in a bad month
- 21.8%
- Volatility (annualized)
- 49%
- Sharpe ratio, 1 year
- 0.09
- Beta to the S&P 500 (5Y)
- 1.34
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2013 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +12.5% | +10.1% | +12.0% | +18.0% | |
| Gross profit | +15.4% | +12.4% | +13.5% | +18.5% | |
| Operating income | +32.0% | – | – | +23.8% | |
| Net income | +12.5% | – | – | +29.9% | |
| EPS, diluted | +17.1% | – | – | – | |
| Free cash flow | +5.7% | +127.6% | +122.9% | +36.5% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 10.7% | -0.5% | 8.8% | |
| Return on assets | 5.2% | -0.4% | 6.7% | |
| Current ratio | 4.66 | 4.63 | 4.03 | |
| Debt to equity | – | – | – | |
| Net debt to EBITDA | – | – | – | |
| Interest coverage | – | – | 28.2× | |
| Inventory turnover | 3.7× | 2.9× | 4.9× | |
| Capex to revenue | 0.9% | 1.1% | 0.7% | |
| Diluted shares | 11M | 19M | 23M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Tactile Systems Technology generated $127.16M from operations and spent $41.05M on capital expenditure, dividends and share buybacks. 27% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 5.8% | 1.15× | 1.31× | 8.8% |
| FY2024 | 5.8% | 1.01× | 1.41× | 8.3% |
| FY2023 | 10.4% | 1.02× | 1.70× | 18.1% |
| FY2022 | -7.2% | 0.99× | 2.00× | -14.3% |
| FY2021 | -5.7% | 0.99× | 1.65× | -9.3% |
| FY2020 | -0.3% | 1.15× | 1.37× | -0.5% |
| FY2019 | 5.8% | 1.46× | 1.28× | 10.9% |
| FY2018 | 4.6% | 1.47× | 1.21× | 8.2% |
| FY2017 | 5.4% | 1.35× | 1.23× | 8.8% |
| FY2016 | 3.4% | 1.52× | 2.05× | 10.7% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$19.09M
- Cash generatingOperating cash flow above zero$42.81M
- Return on assets improvedROA up on the prior year6.0% → 6.4%
- Earnings backed by cashOperating cash flow above net income$42.81M vs $19.09M
- Less leverageLong-term debt to assets fell7.8% → –
- Better liquidityCurrent ratio rose4.36 → 4.03
- No dilutionShare count did not rise24M → 23M
- Gross margin improvedGross margin up on the prior year73.96% → 75.91%
- More efficientAsset turnover rose1.04 → 1.11
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