Why Do You Have To Be Careful With TransEnterix Stock – CWEB.com
TransEnterix, (TRXC) Inc., a medical device company, engages in the research, development, and sale of medical device robotics to enhance minimally invasive surgery.
According to recent studies Robotic assisted minimally invasive surgery does not appear to offer any clinical benefits over conventional laparoscopic techniques in terms of outcomes and complication rates but is associated with significantly higher costs, two new studies of cancers indicate.
TransEnterix surgical bot, Senhance, only does laparoscopic surgery.
The Senhance is an old surgical robot, approved in Europe in 2011, and only three have been sold by TransEnterix in Europe.
This report will likely have negative implications for TransEnterix financial top and bottom lines.
According to a recent wall street research:
It is difficult to establish if TransEnterix has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
It is difficult to establish if TransEnterix has efficiently used its assets last year compared to the US Medical Equipment industry average (Return on Assets) as it is loss-making.
It is difficult to establish if TransEnterix improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
There’s no way TransEnterix will build a business worthy of today’s nearly $500 million stock market valuation. We believe the company, which has accumulated over $333 million in losses, would be overpriced at a price-to-sales less than a fifth of the current 94 ratio.
CWEB Analysts have issued a Hold Rating for TransEnterix, (TRXC) Inc.
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