MeritValue

TACTILE SYSTEMS TECHNOLOGY INC

TCMDdata completeness 100%12 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

TACTILE SYSTEMS TECHNOLOGY INC earns about 5% on invested capital, below its ~9% cost of capital, but has diluted owners by 18% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $7.54 and $101.54 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$208.1M1$246.8M2$274.4M3$293M3$329.5M3
Net income−$11.8M4−$17.9M5$28.5M6$17M6$19.1M6
Operating cash flow$2.63M7$5.21M8$35.9M9$40.7M9$42.8M9
Capital expenditure$2.1M10$1.78M11$2.32M12$2.39M12$2.38M12
Free cash flow (derived)$528,0007$3.43M8$33.5M9$38.3M9$40.4M9
Total debt——$16.8M13—$014
Cash & equivalents$28.2M15$21.9M16$61M17$94.4M18$83.4M18
Diluted shares19.7M20.1M23.2M24.1M23.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$93.97
your share of equity
Profit it earned you last year
$8.19
Free cash flow it threw off
$17.36
Debt you’d be carrying
$0

10 shares is a claim on $93.97 of net worth that earned you $8.19 and generated $17.36 of cash last year, against $0 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
5% avg · 5y
FY21 -2%FY22 -12%FY23 11%FY24 14%FY25 14%

It earned about 5% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+18% shares · 5y

Share count is up 18% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $7.54 and $101.54 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$101.54
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$38.3M
DCF · Growth Exit 5Y
$57.13
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$38.3M
Earnings Power Value
$7.54
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$17M
  • growthAssumed0.0%
Graham Number
$13.17
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $57.13
The three cases
Bear0.0%$27.05
Base20.0%$57.13
Bull20.0%$57.13

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001558370-24-001330 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001558370-25-001096 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001104659-26-016380 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001558370-24-001330 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001558370-25-001096 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001104659-26-016380 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001558370-24-001330 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001558370-25-001096 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001104659-26-016380 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001558370-24-001330 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001558370-25-001096 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001104659-26-016380 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2023-12-23 · accession 0001558370-24-001330 (LongTermDebt)
  14. 10-K · period ending 2025-12-31 · accession 0001104659-26-016380 (LongTermDebt)
  15. 10-K · period ending 2021-12-31 · accession 0001558370-23-001580 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0001558370-24-001330 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0001558370-25-001096 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-12-31 · accession 0001104659-26-016380 (CashAndCashEquivalentsAtCarryingValue)