Tactile Systems Technology, Inc. (TCMD): fair value, margin of safety and Wheel Score

Is TCMD undervalued?

At 22.41 (close of 16 Oct 2026), TCMD trades 45% below the GLS average fair value of 40.62. That average comes from 8 models run on the latest filings, and 6 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Tactile Systems Technology, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

The 8 models disagree widely: EPV gives 12.18 while GLS Growth gives 67.13. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files TCMD under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for TCMD

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health TCMD scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.3 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.

Returns on capital are moderate - ROIC 8.1%, ROE 8.7%, ROA 7.0% - with debt at 0.07 times equity and a free-cash-flow yield of 5.3%.

Tactile Systems Technology, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Sales revenue 89%, Rental revenue 11% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 75: Good

TCMD scores 75 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (18/20), the GLS moat (9/15), the option premium on offer (14/20) and how easily the stock trades (8/20). Stability (8/20) is the part holding the score back.

Implied volatility is 83% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (14 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 406 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.

Volume runs at 160k shares a day on a market cap of $508M, with a beta of 0.82; the Stability part of the Wheel Score gives that 8 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 2 Nov 2026 (after the close), 17 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Medical - Devices

The 12 companies below are the closest to Tactile Systems Technology, Inc. by market cap within the Medical - Devices industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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