EDAP TMS S.A. American Depositary Shares (EDAP)

FairStock Score: 29/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable earnings, low debt, and a price that offers a margin of safety. EDAP does not fit that mold on the supplied figures. It sells non-invasive HIFU and ESWL devices and distributes medical products—interesting niches, but it is tiny, with 289 employees and a $124.4 million market cap at the 2026-07-17 close of $5.43. FairStock's P/E is -6.63 because the supplied EPS figure is negative $0.82, and P/B is 10.45, so investors are paying a very high price for book value. ROE is -123.96%, ROCE is -20.31%, and debt-to-equity is 2.75. Those are not the marks of a fortress balance sheet or a wide moat. The data provided show revenue growth of 189.93% but profit growth of -3028.22%, so the top line has not translated into owner earnings; the fiscal period is not identified in my data, so I treat these as supplied metrics rather than verified reported results. The stock sits near its 52-week high of $5.51, while its FairStock Score is only 29/100 and no Peter Lynch category can be assigned because there are not enough filed annual results. A negative beta of -0.10 may appeal to those seeking diversification, but I do not pay up for statistical quirks. Graham would ask for a discount to net assets and consistent earnings; Buffett would ask for durable competitive advantage and honest, growing owner earnings. Here I see losses, high leverage, and a rich price relative to book. Until the company proves it can convert revenue into positive earnings and reduce debt, the margin of safety is thin. This is a speculative medical-device story, not a value investment by my standards.

In plain English: EDAP TMS makes non-invasive medical machines that use ultrasound and energy for urology treatments, and it also distributes related products. The business looks weak right now: it is losing money, carries much more debt than equity, and the stock price is high compared with its book value and current earnings. At $5.43, the price looks expensive versus those numbers, even though revenue growth has been very high.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-07-17 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer