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Artivion (AORT)
NYSE:AORT
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Artivion
(NYSE:AORT)
46Neutral
Positive Factors
Market Opportunity
Expectations for AORT to receive a premarket approval could expand its market coverage, representing a significant annual US market opportunity.
Operational Recovery
Despite the cybersecurity attack, Artivion is now operating near full capacity and expects significant revenue growth in the year.
Product Approval and Growth
The earlier-than-expected approval of the AMDS humanitarian-device-exemption is anticipated to positively contribute to 2025 top-line growth.
Negative Factors
Cybersecurity Impact
The cyber incident is expected to continue affecting the company's performance in the immediate future, with management projecting lower 1Q25 revenues compared to previous estimates.
Financial Performance
The December cybersecurity breach led to lower-than-expected 4Q24 sales, impacting the company's financial performance.
Stock Valuation
The price target was lowered to $32 from $34, given the cybersecurity issue.
Artivion (AORT) vs. S&P 500 (SPY)
Market Cap
$997.65M
Dividend YieldN/A
Average Volume (3M)535.57K
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth9.75%
EPS Growth57.91%
CountryUS
Employees1,600
SectorHealthcare
Sector Strength69
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.32
Shares Outstanding42,689,304
10 Day Avg. Volume598,178
30 Day Avg. Volume535,573
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.64
Price to Cash Flow (P/CF)25.30
P/FCF Ratio7.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.40Price Target Upside38.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Artivion Business Overview & Revenue Model
Company DescriptionArtivion, Inc. (AORT) is a medical device company that focuses on developing, manufacturing, and commercializing innovative technologies and solutions for treating aortic diseases. The company's product portfolio includes heart valves, surgical grafts, and other cardiovascular devices designed to address complex cardiac conditions. Artivion operates in the healthcare sector, specifically within the cardiovascular device industry, aiming to improve patient outcomes through its advanced medical products.
How the Company Makes MoneyArtivion generates revenue primarily through the sale of its medical devices, particularly in the areas of heart valves and surgical grafts used in cardiac surgeries. The company sells its products to hospitals and healthcare providers, both directly and through distribution partners, enabling them to reach a broad customer base. Additionally, Artivion invests in research and development to continuously innovate and expand its product offerings, which can lead to increased sales and market share. Strategic partnerships and collaborations with research institutions and other industry players also contribute to its revenue by enhancing its product pipeline and market reach.
Artivion Financial Statement Overview
Summary
Artivion is on a growth trajectory with revenue and operational efficiency improvements, but it struggles with profitability due to negative net margins. Leverage is low, but lack of equity ratio data is a risk. Cash flow improvements are noted, yet net income losses challenge cash conversion.Income Statement
Artivion exhibited a solid revenue growth of 9.76% in TTM, reflecting positive momentum in sales. The gross profit margin of 62.01% in TTM indicates efficient production processes. However, the net profit margin remains negative at -3.44%, revealing ongoing challenges with profitability. The EBIT margin improved significantly to 10.46% in TTM from 1.62% in the previous year, suggesting better operational efficiency. Despite these improvements, the company is still not profitable.65
Positive
Balance Sheet
Artivion's debt-to-equity ratio is relatively low at 0.03 in TTM, indicating manageable leverage levels. However, equity ratio data is unavailable, which limits the assessment of asset financing structure. The company has shown fluctuations in equity over the years, and its ability to maintain a stable equity position remains uncertain. The balance sheet reflects a need for stronger equity growth to support financial stability.50
Neutral
Cash Flow
The free cash flow in TTM increased to $3.60 million, indicating improved cash generation. The operating cash flow to net income ratio is positive at -1.13, suggesting that cash flow from operations is strong relative to net income losses. However, the free cash flow to net income ratio is negative, reflecting challenges in converting operating performance into free cash flow. The cash flow situation shows improvements but remains under pressure due to negative net income.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 388.54M | 354.00M | 313.79M | 298.84M | 253.23M | Gross Profit |
| 248.78M | 229.18M | 202.52M | 197.51M | 167.78M | EBIT |
| 38.87M | 5.74M | 3.24M | -13.86M | 2.44M | EBITDA |
| 50.97M | 26.87M | 19.73M | 25.04M | 20.24M | Net Income Common Stockholders |
| -13.36M | -30.69M | -19.19M | -14.83M | -16.68M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 53.46M | 58.94M | 39.35M | 55.01M | 61.96M | Total Assets |
| 789.10M | 792.40M | 762.80M | 793.05M | 789.40M | Total Debt |
| 8.12M | 358.34M | 356.83M | 362.04M | 317.37M | Net Debt |
| 8.12M | 299.40M | 317.48M | 307.03M | 255.42M | Total Liabilities |
| 512.90M | 510.62M | 478.47M | 492.32M | 460.69M | Stockholders Equity |
| 276.20M | 281.78M | 284.33M | 300.73M | 328.71M |
| Cash Flow | Free Cash Flow | |||
| 11.05M | 11.39M | -15.87M | -15.68M | 5.04M | Operating Cash Flow |
| 22.24M | 18.82M | -5.15M | -2.58M | 12.37M | Investing Cash Flow |
| -28.19M | -502.00K | -10.71M | 5.66M | -73.13M | Financing Cash Flow |
| 2.20M | 865.00K | -1.64M | -12.22M | 93.61M |
Artivion Technical Analysis
Negative
23.37
Price Trends
26.15
Negative
27.69
Negative
26.97
Negative
Market Momentum
-0.64
Negative
42.25
Neutral
56.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AORT, the sentiment is Negative. The current price of 23.37 is below the 20-day moving average (MA) of 24.11, below the 50-day MA of 26.15, and below the 200-day MA of 26.97, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 42.25 is Neutral, neither overbought nor oversold. The STOCH value of 56.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AORT.
Artivion Risk Analysis
Artivion disclosed 32 risk factors in its most recent earnings report. Artivion reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Artivion Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $531.14M | ― | -10.34% | ― | 37.65% | -77.01% | |
56 Neutral | $1.14B | ― | -33.30% | ― | 25.74% | 57.18% | |
54 Neutral | $704.62M | ― | -9.99% | ― | 17.81% | 54.69% | |
52 Neutral | $612.94M | ― | -20.86% | ― | 11.89% | 79.18% | |
51 Neutral | $533.44M | ― | -22.87% | ― | 7.08% | 20.45% | |
48 Neutral | $6.35B | 1.19 | -46.26% | 2.67% | 19.24% | 1.75% | |
46 Neutral | $997.65M | ― | -4.78% | ― | 9.75% | 57.91% |
* Healthcare Sector Average
Performance Comparison
AORT
Artivion
23.37
3.02
14.84%
OFIX
Orthofix
13.67
0.58
4.43%
TNDM
Tandem Diabetes Care
17.06
-14.80
-46.45%
AXGN
AxoGen
15.89
8.86
126.03%
KIDS
OrthoPediatrics
21.16
-9.29
-30.51%
BVS
Bioventus
7.48
2.85
61.56%
Artivion Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -16.09% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong financial performance for 2024, with impressive revenue and EBITDA growth and successful product approvals. However, the company faced challenges due to a cybersecurity incident that impacted Q4 results and led to delays in product processing and PMA approval for AMDS. Despite these setbacks, the positive developments in product approvals and international growth suggest optimism for 2025.Highlights
Strong Constant Currency Revenue Growth
Artivion achieved a total constant currency revenue growth of 10% excluding PerClot. The company also expanded EBITDA margins by 310 basis points, resulting in adjusted EBITDA growth of 32% year-over-year.
On-X Revenue Growth
On-X revenue increased 10% year-over-year on a constant-currency basis, driven by market share gains globally and positive feedback from the field.
AMDS HDE Approval and Impact
The AMDS received a Humanitarian Device Exemption (HDE), allowing for commercial distribution in the U.S. prior to PMA approval. Significant clinical benefits include a 72% reduction in mortality and 54% reduction in major adverse events compared to standard care.
Stent Graft Revenue Growth
Stent graft revenues grew 8% on a constant currency basis in Q4, with significant opportunities in Europe and plans to expand to the U.S. and Japanese markets.
BioGlue Approval in China
BioGlue received regulatory approval in China, with commercialization expected in the second half of 2025. The product is anticipated to benefit approximately 12,000 patients annually in China.
Strong International Revenue Performance
Latin America and Asia-Pacific delivered constant-currency revenue growth of 26% and 11% for the full year, respectively.
Lowlights
Cybersecurity Incident Impact
A cybersecurity incident in November 2024 negatively impacted Q4 revenue by approximately $4.5 million and adjusted EBITDA by $2 million. Tissue processing and stent grafts were the areas most affected.
Tissue Processing Decline
Tissue processing declined 8% year-over-year on a constant currency basis in Q4, heavily impacted by the cyber incident.
Delayed AMDS PMA Approval
The PMA approval for AMDS is now anticipated for mid-2026 due to additional non-clinical benchtop testing required by the FDA.
Extended Lead Times for Tissue and On-X
Lead times for tissue and On-X products were extended due to the cyber incident, affecting the timing of revenue recognition in early 2025.
Company Guidance
During the Artivion Fourth Quarter and Year End 2024 Financial Conference Call, the company provided guidance for 2025, projecting constant currency revenue growth between 10% and 14%, translating to a reported revenue range of $420 million to $435 million. They anticipate a 2 percentage point negative impact from foreign currency. Artivion expects adjusted EBITDA to grow by 18% to 28%, reaching between $84 million and $91 million, with a 200 basis point expansion in adjusted EBITDA margin at the midpoint. The company plans for a 100 basis point improvement in gross margins, driven by the launch of the AMDS Humanitarian Device Exemption (HDE) in the U.S. They also anticipate R&D expenses to rise to approximately 8% of sales for 2025. Artivion's guidance reflects confidence in overcoming the short-term disruptions from a recent cybersecurity incident and in achieving sustained double-digit revenue growth while growing EBITDA at least twice the rate of constant currency revenue growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.