Medacta Group SA

Medacta Group SA maintains a balanced capital structure with a debt-to-equity ratio of 0.57 and a current ratio of 2.08, indicating adequate short-term liquidity despite a medium liquidity risk rating. The company holds total assets of EUR 917.6 million against total liabilities of EUR 461.1 million, with long-term debt standing at EUR 260.8 million. Although the firm generates strong operating cash flow of EUR 152.7 million, free cash flow is constrained to EUR 12.1 million due to significant capital expenditures of EUR 143.1 million, resulting in a negative net cash position after debt subtraction.

Profitability metrics demonstrate strong operational efficiency, with a return on equity of 20.91% and a return on assets of 10.4%. The company reported net income of EUR 95.5 million on revenue of EUR 683.8 million, yielding a net margin of approximately 14%. Gross profit stands at EUR 459.4 million, reflecting a gross margin of roughly 67%, while operating income is EUR 125.1 million, indicating effective cost control and operational leverage. These returns suggest a robust economic model within the health care equipment sector, though specific cohort median comparisons are unavailable for direct benchmarking.

Revenue concentration and geographic exposure details are not provided in the available data, preventing a detailed analysis of segment mix or regional risk. The company’s activity is broadly classified under Health Care Equipment & Supplies, but specific product lines or customer concentrations are not disclosed in the current snapshot. Without segment data, the analysis relies on aggregate financial performance to infer business stability.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot provides a single-period view of revenue and net income, but no year-over-year or quarterly trends are available to assess momentum or cyclicality. Consequently, the growth narrative is derived solely from the current period’s absolute performance metrics.

Risk assessment highlights a medium liquidity risk and low dilution risk, with a key flag noting that net cash is negative after subtracting total debt. The company’s reliance on debt financing, evidenced by the EUR 260.8 million long-term debt, requires careful management of cash flows to service obligations. The low dilution risk suggests that equity issuance is not a primary near-term concern, supporting shareholder value preservation.

Recent events and market sentiment are reflected in analyst estimates, with a mean price target of EUR 169.25 and a median target of EUR 170.50. The mean recommendation of 2.25 indicates a moderate buy stance, with three buy ratings and one hold rating among analysts. No strong-buy ratings are present, suggesting cautious optimism rather than aggressive bullishness. These estimates provide a benchmark for market expectations relative to the company’s current financial position.

Revenue grew 15.8% year-over-year to EUR 683.8 million in FY2026, demonstrating strong top-line expansion momentum.

Net income surged 31.0% to EUR 95.5 million in FY2026, significantly outpacing revenue growth rates.

Analysts project 31.0% upside to a mean price target of EUR 169.25, reflecting positive market sentiment.

Long-term debt increased to EUR 260.8 million in FY2026, reflecting a rising leverage burden on the balance sheet.

The company faces medium liquidity risk and medium credit risk, highlighting potential financial stability concerns.

Current ratio of 0.57 indicates potential short-term liquidity constraints, as current assets do not cover current liabilities.

Revenue €683.8M, +15,8% YoY; Operating income +37,7% YoY.

• ▍Revenue €683.8M, +15,8% YoY
• ▍Operating income +37,7% YoY
• ▍Net income +31,0% YoY
• ▍Free cash flow −45,5% YoY
• ▍Net margin 14.0%

Revenue €590.6M, +15,6% YoY; Operating income +22,0% YoY.

• ▍Revenue €590.6M, +15,6% YoY
• ▍Operating income +22,0% YoY
• ▍Net income +53,9% YoY
• ▍Free cash flow +89,4% YoY
• ▍Net margin 12.3%

Revenue €510.8M, +16,9% YoY; Operating income +21,1% YoY.

• ▍Revenue €510.8M, +16,9% YoY
• ▍Operating income +21,1% YoY
• ▍Net income +2,4% YoY
• ▍Free cash flow −54,8% YoY
• ▍Net margin 9.3%

Revenue €437.1M, +20,4% YoY; Operating income +4,6% YoY.

• ▍Revenue €437.1M, +20,4% YoY
• ▍Operating income +4,6% YoY
• ▍Net income −10,2% YoY
• ▍Free cash flow −29,7% YoY
• ▍Net margin 10.6%

Revenue €363.1M; Operating income €58.8M.

• ▍Revenue €363.1M
• ▍Operating income €58.8M
• ▍Net margin 14.2%