Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 6 May, 25 | MDXG | Buy | USD 6.64 | USD 6.97 | USD 7.37 | 2 days | 11.0% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
MiMedx Group, Inc. develops and distributes placental tissue allografts for various sectors of healthcare. It processes the human placental tissues utilizing its patented and proprietary PURION process to produce allografts that retains the tissue's inherent biological properties and regulatory proteins. The company's patented and proprietary processing method employs aseptic processing techniques in addition to terminal sterilization. Its products include EpiFix, a barrier membrane allograft used for the treatment of chronic wounds, including diabetic foot ulcers, venous leg ulcers, and pressure ulcers; AmnioFix, a protective barrier allograft, which comprises dehydrated human amnion/chorion membrane for use in surgical recovery applications; and EpiCord and AmnioCord are dehydrated human umbilical cord allografts that are used to provide a protective environment for the healing process, as well as used in the advanced wound care and surgical recovery applications. The company's products have applications in the areas of wound care, burn, surgical sectors of healthcare. The company sells its products through direct sales force and independent sales agents, as well as through independent distributors primarily in the United States. MiMedx Group, Inc. was incorporated in 2011 and is headquartered in Marietta, Georgia.
Adjusted EBITDA Margin of 20%, indicating strong operational efficiency despite flat gross profit
16% YoY Growth in Surgical Products, the primary driver behind the overall 4% sales increase
22% Decline in Net Income, from $9 million in Q1 2024 to $7 million in Q1 2025
4% Point Drop in Gross Margin, falling from 85% in Q1 2024 to 81% in Q1 2025
MiMedx faces regulatory uncertainty and reimbursement risk due to delays in LCD implementation, which may impact demand and pricing for its wound care products
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 6.64 | 6.11 | 6.97 | 7.37 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financial Performance Overview: MiMedx Group, Inc. (Nasdaq: MDXG) reported its financial results for the first quarter ended March 31, 2025. The company achieved net sales of $88 million, reflecting a 4% increase compared to $85 million in the prior-year period. This growth was primarily attributed to the strong performance of its Surgical products portfolio. The gross profit remained stable year-over-year at $72 million; however, the gross margin declined to 81% from 85%, primarily due to product variances and mix.
Profitability and EBITDA Margin: For the first quarter of 2025, the company reported a GAAP net income of $7 million, down from $9 million in the same period in 2024. Earnings per share (EPS) stood at $0.05. Adjusted EBITDA reached $17 million, representing 20% of net sales, indicating operational efficiency amid a changing reimbursement and regulatory environment.
Segment Performance and Strategic Products: Surgical products were the primary driver of revenue growth, increasing 16% year-over-year. Key contributors included AMNIOEFFECT® and HELIOGEN™, which supported the company's performance during a challenging regulatory backdrop. Conversely, sales of Wound products declined by 2% from the prior-year period, slightly offsetting overall sales growth.
Operating Expense Trends: Total selling, general, and administrative (SG&A) expenses rose to $60 million, compared to $55 million in Q1 2024. This increase was due to higher commissions from increased sales volume, merit-based salary increases, and added expenditures related to legal and regulatory disputes. Research and development (R&D) expenses were flat year-over-year at $3 million, with spending directed toward ongoing trials and pipeline development.
Liquidity and Balance Sheet Position: As of March 31, 2025, MiMedx held $106 million in cash and cash equivalents, up from $104 million at the end of 2024. After accounting for outstanding debt, the company’s net cash position was $88 million, marking a $2 million increase from the previous quarter. This solid liquidity position supports ongoing investment in product development and commercial expansion.
Financial Outlook and Long-Term Strategy: MiMedx reaffirmed its guidance for full-year 2025, anticipating net sales growth in the high single-digit percentage range and maintaining an adjusted EBITDA margin above 20%. Over the longer term, the company continues to target low double-digit annual revenue growth and sustained EBITDA margin performance. Management remains focused on broadening use cases for its proprietary technology while navigating reimbursement headwinds.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on MiMedx Group (NASDAQ: MDXG) at the current market price of USD 6.64, as on May 06, 2025 at 07:05 AM PDT
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Biotechnology
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| MDXG MiMedx Group Inc |
-0.07 0.98% | 7.10 | 15.02 | 20.12 | 2.94 | 6.64 | 2.84 | 22.54 |
| NVO Novo Nordisk A/S |
0.43 0.63% | 68.63 | 41.58 | 31.15 | 2.13 | 32.99 | 2.11 | 4.70 |
| NONOF Novo Nordisk A/S |
0.75 1.11% | 68.25 | 41.06 | 31.25 | 2.08 | 33.11 | 2.11 | 4.70 |
| VRTX Vertex Pharmaceuticals Inc |
-9.26 2.07% | 437.92 | 29.67 | 24.33 | 10.38 | 5.83 | 9.33 | 20.00 |
| REGN Regeneron Pharmaceuticals Inc |
-6.24 1.01% | 608.55 | 29.07 | 20.12 | 7.57 | 3.82 | 6.95 | 19.42 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 06,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
