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ZYBERNO

Stock Report

Updated Aug 31, 2026

Treace Medical Concepts, Inc. (TMCI)

Healthcare • NASDAQ

$4.65

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

9.0/100

POOR BUSINESS

Treace Medical Concepts, Inc. (TMCI) scores 9/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full TMCI quality analysis & detailed breakdown

VALUATION SIGNAL

N/A (Requires more data)

Requires fair value calculation and current price data

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full TMCI valuation analysis · → View full TMCI Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-74.1%)

Debt-to-Equity (Solvency Risk):POOR (1.08x)

Operating Margin (Operational Efficiency):CRITICAL (-26.2%)

Return on Capital (Capital Efficiency):CRITICAL (-35.2%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

Treace Medical Concepts, Inc. (TMCI) stock report — Zyberno Score 9/100 (POOR BUSINESS). Full financial analysis on Zyberno.

Over the trailing twelve months, TMCI generated -$21.58M in Owner Earnings. Capital was deployed as follows: $13.04M invested in capital expenditures. Reinvestment rate: -12.4%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:4.65

Market Cap:$302.48M

Valuation Multiples (3)

P/B Ratio:4.47x

P/S Ratio:1.47x

Peg Ratio:-999.00x

Enterprise Metrics (1)

Enterprise Value:$349.08M

Price Action & Momentum (3)

12-1 Momentum:

-25.3% (15th pctile)

📈 Click to view full TMCI Momentum analysis →

Momentum Percentile:15 / 100

% of 52-Week High:60.9%

B. Profitability Assessment

Return Metrics (5)

ROE:

-74.1%

📊 Click to view full TMCI ROE analysis →

ROA:-31.6%

Roic:

-35.2%

📊 Click to view full TMCI ROIC analysis →

Reinvestment Rate:-12.4%

Fundamental Growth Rate (g):4.4%

Margin Analysis (3)

Operating Margin Ttm:-26.2%

Net Margin Ttm:-29.0%

Ebitda Margin:-22.3%

TTM Performance (3)

Gross Margin Ttm:79.5%

Operating Margin Ttm:-26.2%

Net Margin Ttm:-29.0%

Yield Metrics (2)

Earnings Yield:-$19.45

Dividend Yield:0.0%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.88

📊 Click to view full TMCI Earnings Surprise analysis →

EPS Surprise vs Expected:24.5%

Latest Earnings Filed:2026-08-07

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):6.8%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:2.90x

Quick Ratio:1.95x

Cash Ratio:0.30x

Leverage Analysis (3)

Debt To Equity Ttm:1.08x

Debt-to-Equity Ratio:1.08x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-9.30x

Times Interest Earned:-9.30

Capital Structure (4)

Working Capital:78,958,000.00

Cash And Cash Equivalents:12,610,000.00

Long Term Debt:$56.04M

Net Debt:$46.60M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $205.31M

Linear Growth: 6.8%

📊 Click to view full TMCI Revenue analysis & methodology →

Cost Of Revenue Ttm:$42.19M

Profitability Breakdown (2)

Gross profit TTM: $163.12M

Linear Growth: 6.2%

📊 Click to view full TMCI Gross Profit analysis & methodology →

-$53.72M

Bottom Line Performance (3)

-$59.52M

Income Before Tax:$0.00

Ebitda Ttm:-45,738,000.00

Operating Expenses (5)

Operating Expenses:216,844,000.00

R And D Expense:18,220,000.00

Sga Expense:62,235,000.00

Income Tax Expense:$0.00

Interest Expense:5,820,000.00

Expense Ratios (3)

R And D To Revenue Percentage:40.2%

Sga To Revenue Percentage:137.2%

Ebitda Margin:-22.3%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$181.06M

Current Assets:$120.45M

Ppe Net:32,496,000.00

Goodwill:12,815,000.00

Intangible Assets:$6.65M

Liability Structure (4)

Total Liabilities:113,318,000.00

Current Liabilities:41,496,000.00

Long Term Debt:$56.04M

Short Term Debt:$3.17M

Equity & Capital (3)

Equity:$67.74M

Retained Earnings:-$282.83M

Common Stock:300,000,000.00

Working Capital Items (3)

Accounts Receivable:28,732,000.00

Inventory:39,542,000.00

Accounts Payable:16,061,000.00

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:6,463,000.00

C. Cash Flow Analysis

Operating Activities (2)

-$12.93M-$25.96M

Investment Activities (2)

Investing Cash Flow:-$7.82M

Capital Expenditures Ttm:13,036,000.00

Financing Activities (3)

Financing Cash Flow:-$588.00K

Dividends Paid Ttm:0.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:7,985,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):-0.92

-$0.92

Earnings Per Share Ttm:-$0.91

Revenue & Cash Per Share (2)

Sales Per Share Ttm:3.16

Operating Cash Flow Per Share:-$0.25

Book Value & Capital (2)

Book Value Per Share:$1.04

Cash Per Share:0.19

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:1.09x

Working Capital Turnover Ttm:2.60x

Receivables Management (2)

Receivables Turnover Ttm:7.15x

Days Sales Outstanding Ttm:51.08

Inventory Management (2)

Inventory Turnover Ttm:1.07x

Days Inventory Outstanding Ttm:342.12

Payables & Cash Cycle (2)

Days Payable Outstanding:138.96

Cash Conversion Cycle:254.24

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:40.00

Quality Score:25.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (1)

-$21.58M

Damodaran Growth Analysis (2)

Reinvestment Rate:-12.4%

Fundamental Growth Rate (g):4.4%

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (1)

Revenue Growth Rate (Linear):6.8%

Other Growth Rates (2)

Gross Profit Growth Rate (Linear):6.2%

Book Value Growth Rate (Linear):-3.3%

C. Company Profile & Context

Corporate Information (6)

Symbol:TMCI

Company Name:Treace Medical Concepts, Inc.

Sector:Healthcare

Industry:Medical Devices

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:65.05M

Shares Outstanding Basic:65.05M

Shares Outstanding Diluted:65.05M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-31 05:14:48 UTC

Data Timestamp:2026-08-18T15:22:59.054714