Tactile Systems Technology Inc. Common Stock (TCMD)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

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

I look for businesses with durable advantages and bought at a sensible price. Tactile sells pneumatic compression devices for chronic swelling conditions, a useful niche with clinical and reimbursement hurdles that can slow competitors. It is financially sturdy: debt to equity is 0.06, Altman Z-Score is 6.64, and trailing free cash flow is $26.7M, a 5.3% FCF yield. Revenue grew from $293.0M in FY2024 to $329.5M in FY2025, while net income rose from $17.0M to $19.1M and diluted EPS from $0.70 to $0.82. But progress is uneven. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $75.3M and net income was a loss of $1.8M, or EPS -$0.08. Then fiscal Q2 2026, ended 2026-06-30, produced $85.7M revenue, $7.8M net income, and $0.34 EPS. Fiscal Q3 2025 had $85.8M revenue, $8.2M net income, and $0.36 EPS. The stock at $22.31 on 2026-10-13 carries a FairStock P/E of 20.85, P/B of 2.26, and EV/EBITDA of 10.15. The PEG of 0.51 looks attractive if growth persists, but the Graham Number is $15.41, leaving price 44.78% above that conservative value. ROE is 11.88% and ROCE 7.92%, decent but not spectacular. FairStock classifies it as a TURNAROUND after a recent loss. I want more consistent profitability and a margin of safety before calling it compelling.

In plain English: Tactile Systems makes medical devices that use air pressure to treat long-term swelling and related leg problems. The business is profitable, has little debt, and generated $26.7M in free cash over the last year, but profits have been uneven and one recent quarter had a loss. At $22.31, the stock trades above a conservative price estimate based on its current earnings and book value, so it looks more expensive than cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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