Atricure (ATRC) AI Stock Analysis

• Market Cap: $1.57B
• Dividend Yield: N/A
• Average Volume (3M): 434.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: 15.79%
• EPS Growth: -1.20%
• Country: US
• Employees: 1,300
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.14
• Shares Outstanding: 49,504,852
• 10 Day Avg. Volume: 398,579
• 30 Day Avg. Volume: 434,116
• PEG Ratio: -0.67
• Price to Book (P/B): 4.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -43.65
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 5.70
• Enterprise Value/Ebitda: -31.81
• 1Y Price Target: $50.38
• Price Target Upside: 58.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 60 Neutral
• Price Target: $34.00 ▲(7.05%Upside)

Atricure demonstrates strong revenue growth and operational efficiency, as highlighted in the earnings call. However, profitability remains a challenge, as indicated by the negative P/E ratio and financial performance metrics. Technical analysis suggests a bearish trend, adding further caution. The company needs to focus on improving profitability and addressing operational expenses to enhance investor confidence.

Positive Factors

Financial Performance

AtriCure posted a solid Q1, with revenue relatively in line with estimates and the company continuing to show better than expected adjusted EBITDA.

Guidance

Atricure, Inc. raised its adjusted EBITDA and EPS guidance.

Market Expansion

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

Negative Factors

Market Reaction

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

Price Target

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.

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 to hospitals, surgical centers, and healthcare providers globally. Key revenue streams include sales of its ablation and cryoablation systems, which are used in procedures to treat atrial fibrillation and reduce the risk of stroke. The company also earns income from its access and closure devices that aid in surgical procedures. AtriCure's earnings are supported by its strong relationships with healthcare facilities and surgeons, as well as its ongoing investment in research and development to expand its product offerings and improve existing solutions. Additionally, the company may engage in partnerships or collaborations with other organizations to enhance its market presence and drive sales growth.

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.

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	480.08M	465.31M	399.25M	330.38M	274.33M	206.53M
Gross Profit	358.12M	347.52M	300.37M	245.94M	205.86M	149.31M
EBITDA	-17.53M	-18.53M	-8.11M	-29.50M	-36.85M	-33.61M
Net Income	-38.18M	-44.70M	-30.44M	-46.47M	50.20M	-48.16M
Balance Sheet
Total Assets	591.63M	609.33M	613.93M	585.45M	615.31M	714.54M
Cash, Cash Equivalents and Short-Term Investments	99.89M	122.72M	137.28M	121.11M	119.09M	244.22M
Total Debt	77.41M	76.53M	74.49M	69.08M	75.65M	74.00M
Total Liabilities	137.01M	148.36M	147.76M	128.69M	131.56M	302.14M
Stockholders Equity	454.62M	460.97M	466.17M	456.75M	483.76M	412.39M
Cash Flow
Free Cash Flow	188.00K	-11.26M	-37.51M	-39.02M	-23.53M	-25.13M
Operating Cash Flow	23.05M	12.20M	4.48M	-22.14M	-13.78M	-19.87M
Investing Cash Flow	18.91M	30.23M	21.82M	44.01M	23.50M	-156.20M
Financing Cash Flow	-6.93M	-3.60M	-32.00K	-7.06M	-7.64M	189.39M

Atricure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATRC, the sentiment is Negative. The current price of 31.76 is below the 20-day moving average (MA) of 32.62, below the 50-day MA of 32.53, and below the 200-day MA of 33.54, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 39.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATRC.

Atricure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CERT	71 Outperform	$1.84B	―	-0.25%	―	9.37%	95.72%
OMCL	67 Neutral	$1.40B	65.67	1.73%	―	3.00%	―
Sector *	64 Neutral	¥342.56B	10.47	-2.86%	2.57%	11.81%	-7.17%
ATRC	60 Neutral	$1.57B	―	-8.38%	―	15.79%	-1.20%
PCRX	59 Neutral	$1.08B	―	-12.27%	―	3.08%	-247.82%
IART	52 Neutral	$1.05B	―	-1.85%	―	6.19%	-174.69%
NEOG	45 Neutral	$1.16B	―	-16.71%	―	-2.50%	-30760.27%

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.

The most recent analyst rating on (ATRC) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Atricure stock, see the ATRC Stock Forecast page.