Atricure (ATRC) AI Stock Analysis

• Market Cap: $1.78B
• Dividend Yield: N/A
• Average Volume (3M): 620.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.15
• Revenue Growth: 16.28%
• EPS Growth: 10.63%
• Country: US
• Employees: 1,300
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.13
• Shares Outstanding: 49,701,416
• 10 Day Avg. Volume: 436,155
• 30 Day Avg. Volume: 620,063
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 3.05
• Enterprise Value/Gross Profit: 4.08
• Enterprise Value/Ebitda: -100.33
• 1Y Price Target: $49.75
• Price Target Upside: 32.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 61 Neutral
• Price Target: $38.00 ▲(0.90% Upside)

Atricure's overall stock score is driven by strong earnings call results, indicating robust revenue growth and successful product launches. However, financial performance is hindered by profitability challenges, and valuation metrics are weak due to a negative P/E ratio. Technical analysis shows positive momentum, supporting the stock's current trajectory.

Positive Factors

Financial Performance

ATRC's revenue, EBITDA, and EPS exceeded consensus expectations.

Market Expansion

Opportunity within its existing markets and significant expansion of its total addressable markets, growing to $10 billion from $5 billion.

Product Launches

Management noted that the product launches of both CryoSphere MAX and Flex-Mini are lifting the overall company growth rates.

Negative Factors

Peer Comparison

The price target for Atricure, Inc. was lowered due to peer multiple contraction.

Revenue Growth

Revenue growth slowed due to slower Open-Heart Ablation, Minimally Invasive Ablation, and Pain Management.

Stock Reaction

The stock experienced a knee-jerk reaction to the revenue growth forecast being below expectations.

Atricure Business Overview & Revenue Model

Company Description

AtriCure, Inc. develops, manufactures, and sells devices for the surgical ablation of cardiac tissue and systems, and intercostal nerves to medical centers in the United States, Europe, Asia, and internationally. The company offers Isolator Synergy Clamps, a single-use disposable radio frequency products; multifunctional pens and linear ablation devices, such as the MAX Pen device that enables surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation and ablate cardiac tissue with the same device; and the Coolrail device, which enable users to make longer linear lines of ablation. It also provides cryoICE Cryoablation System that enables the user to make linear ablations of varied lengths; EPi-Sense Guided Coagulation System, a single-use disposable device used for the treatment of symptomatic, drug-refractory, and long-standing persistent atrial fibrillation; AtriClip System, an implantable device coupled to a single-use disposable applier; and LARIAT System, a suture-based solution for soft-tissue closure compatible with a range of anatomical shapes. In addition, the company sells Lumitip Dissectors to separate tissues to provide access to key anatomical structures that are targeted for ablation; Glidepath guides for placement of clamps; Subtle Cannula's to support access for EPi-Sense catheters; and various reusable cardiac surgery instruments, which are used during surgical procedures for repair or replacement of certain heart valves. It markets and sells its products through independent distributors and direct sales personnel. The company was incorporated in 2000 and is headquartered in Mason, Ohio.

How the Company Makes Money

AtriCure generates revenue primarily through the sale of its medical devices and related products. Key revenue streams include the direct sale of its ablation devices, which are used in surgical procedures to treat atrial fibrillation, as well as the sale of accessories and consumables necessary for these procedures. The company also benefits from recurring revenue through the ongoing use of its devices in hospitals and surgical centers. Additionally, AtriCure has established partnerships with various healthcare institutions and providers, which help to expand its market reach and enhance its service offerings. Factors contributing to its earnings include the increasing prevalence of atrial fibrillation, the growing acceptance of minimally invasive surgical techniques, and ongoing innovation in its product line.

Atricure Financial Statement Overview

Summary

Atricure shows potential in revenue growth and operational efficiency, evident from its strong gross profit margin, but struggles with profitability, reflected in its negative net income and margins. The balance sheet is well-structured with low leverage, providing financial stability. Cash flow generation is improving but remains constrained by capital expenditures. Overall, the company is on a growth trajectory but needs to address profitability challenges to enhance financial health.

Income Statement

Atricure's TTM revenue growth rate of 3.17% indicates moderate growth in a competitive industry. The gross profit margin of 74.58% demonstrates strong cost control and efficient operations. However, the company remains unprofitable, with a net profit margin of -7.95% and negative EBIT and EBITDA margins, which suggest ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 76.85%. The debt-to-equity ratio is low at 0.17, suggesting a conservative approach to leverage. However, return on equity is negative due to consistent net losses, indicating inefficiencies in converting equity into profit.

Cash Flow

Cash flow statements highlight improved operational cash flow, yet free cash flow remains minimal, suggesting limited cash generation after capital expenditures. The operating cash flow to net income ratio is positive, indicating that cash operations are better than reported earnings. However, the free cash flow to net income ratio is low due to the small free cash flow figure.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	499.95M	465.31M	399.25M	330.38M	274.33M	206.53M
Gross Profit	373.52M	347.52M	300.37M	245.94M	205.86M	149.31M
EBITDA	-15.18M	-18.53M	-8.11M	-29.50M	-36.85M	-33.61M
Net Income	-36.36M	-44.70M	-30.44M	-46.47M	50.20M	-48.16M
Balance Sheet
Total Assets	608.85M	609.33M	613.93M	585.45M	615.31M	714.54M
Cash, Cash Equivalents and Short-Term Investments	117.80M	122.72M	137.28M	121.11M	119.09M	244.22M
Total Debt	77.25M	76.53M	74.49M	74.55M	75.65M	74.00M
Total Liabilities	144.36M	148.36M	147.76M	128.69M	131.56M	302.14M
Stockholders Equity	464.49M	460.97M	466.17M	456.75M	483.76M	412.39M
Cash Flow
Free Cash Flow	8.29M	-11.26M	-37.51M	-39.02M	-23.53M	-25.13M
Operating Cash Flow	36.43M	12.20M	4.48M	-22.14M	-13.78M	-19.87M
Investing Cash Flow	-19.64M	30.23M	21.82M	44.01M	23.50M	-156.20M
Financing Cash Flow	-5.50M	-3.60M	-32.00K	-7.06M	-7.64M	189.39M

Atricure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATRC, the sentiment is Positive. The current price of 37.66 is above the 20-day moving average (MA) of 35.55, above the 50-day MA of 33.07, and above the 200-day MA of 34.38, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 64.88 is Neutral, neither overbought nor oversold. The STOCH value of 64.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATRC.

Atricure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LMAT	76 Outperform	$2.18B	46.84	13.81%	0.76%	14.11%	23.98%
TFX	73 Outperform	$5.51B	29.33	4.36%	1.05%	1.11%	-23.73%
ATRC	61 Neutral	$1.78B	―	-7.85%	―	16.28%	10.63%
QDEL	53 Neutral	$1.82B	―	-14.80%	―	-3.00%	76.48%
Sector *	51 Neutral	$7.82B	-0.16	-39.78%	2.19%	21.38%	-1.56%
NVCR	46 Neutral	$1.33B	―	-48.07%	―	14.58%	0.86%
PLSE	44 Neutral	$1.08B	―	-103.50%	―	―	-33.24%

Atricure Corporate Events

AtriCure Stockholders Approve Stock Incentive Plan Amendment

At the 2025 Annual Meeting of Stockholders held on May 19, AtriCure’s stockholders approved an amendment to the 2023 Stock Incentive Plan, increasing the shares available for issuance from 2,800,000 to 4,500,000. This amendment aims to attract and retain key personnel by allowing directors, officers, and employees to acquire equity interests, aligning their interests with those of the stockholders. Additionally, the meeting saw the election of nine directors, the ratification of Deloitte & Touche LLP as the accounting firm, and advisory votes on executive compensation and its frequency, with the decision to hold annual advisory votes on executive compensation.