Atricure (ATRC) AI Stock Analysis

• Market Cap: $1.87B
• Dividend Yield: N/A
• Average Volume (3M): 373.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: 16.28%
• EPS Growth: 10.63%
• Country: US
• Employees: 1,300
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.13
• Shares Outstanding: 49,701,416
• 10 Day Avg. Volume: 357,300
• 30 Day Avg. Volume: 373,025
• 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: 0.82
• Enterprise Value/Revenue: 3.05
• Enterprise Value/Gross Profit: 4.08
• Enterprise Value/Ebitda: -100.33
• 1Y Price Target: $51.43
• Price Target Upside: 41.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 56 Neutral
• Price Target: $36.00 ▼(-1.29% Downside)

Atricure's overall stock score is driven by strong earnings call results, showcasing robust revenue growth and profitability improvements. However, financial performance is hindered by profitability challenges and operational inefficiencies. Technical indicators suggest potential short-term weakness, and valuation metrics reflect current unprofitability.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for AtriCure's products, supporting long-term market expansion and financial stability.

Innovative Product Launches

Innovative products enhance AtriCure's competitive edge, driving growth in key segments and supporting sustained revenue increases.

International Growth

Strong international growth diversifies revenue streams and reduces reliance on domestic markets, enhancing global market presence.

Negative Factors

Profitability Challenges

Ongoing profitability challenges may hinder long-term financial health, limiting reinvestment capabilities and shareholder returns.

Challenges in Hybrid Therapy Procedures

Competitive pressures in hybrid therapy could impact sales growth, necessitating strategic adjustments to maintain market share.

Decreased Gross Margin

A decrease in gross margin suggests rising costs or pricing pressures, potentially affecting future profitability and cost management.

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: 36.47
• 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 36.47 is above the 20-day moving average (MA) of 36.03, above the 50-day MA of 36.09, and above the 200-day MA of 34.85, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 63.39 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	―	$2.02B	43.33	13.81%	0.84%	14.11%	23.98%
TFX	―	$5.83B	31.05	4.36%	1.03%	1.11%	-23.73%
ATRC	―	$1.87B	-47.42	-7.85%	―	16.28%	10.63%
QDEL	―	$2.07B	-4.51	-14.80%	―	-3.00%	76.48%
NVCR	―	$1.54B	-8.70	-48.07%	―	14.58%	0.86%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PLSE	―	$1.22B	-16.59	-103.50%	―	―	-33.24%

Atricure Corporate Events

AtriCure Reports Strong Q2 Earnings with Record Growth

AtriCure, Inc. recently held its earnings call, reflecting a strong quarter marked by significant revenue growth across multiple segments and the successful completion of a major clinical trial enrollment. Despite facing challenges in the hybrid therapy segment due to competitive pressures and a slight decrease in gross margin, the overall performance and strategic direction of the company remain positive.

AtriCure’s Strong Q2 2025 Performance and Raised Outlook

AtriCure, Inc. is a leading company specializing in innovative surgical treatments and therapies for atrial fibrillation, left atrial appendage management, and post-operative pain management, operating primarily in the medical device industry.