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AxoGen (AXGN)
NASDAQ:AXGN
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AxoGen
(NASDAQ:AXGN)
55Neutral
Positive Factors
BLA Approval
AXGN's upcoming BLA approval is expected and is largely de-risked, providing a favorable upcoming catalyst path.
Sales Performance
AXGN posted strong Q4 results, beating top- and bottom-line expectations while again generating cash flow.
Negative Factors
Insurance Coverage Challenges
Nearly 50% of commercial lives are not covered for Avance due in part to its investigational status.
AxoGen (AXGN) vs. S&P 500 (SPY)
Market Cap
$772.47M
Dividend YieldN/A
Average Volume (3M)515.12K
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth17.81%
EPS Growth54.69%
CountryUS
Employees428
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)-0.23
Shares Outstanding44,343,784
10 Day Avg. Volume666,889
30 Day Avg. Volume515,122
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.12
Price to Cash Flow (P/CF)22.10
P/FCF Ratio21.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.20Price Target Upside46.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
AxoGen Business Overview & Revenue Model
Company DescriptionAxoGen, Inc. engages in the development and market of surgical solutions for peripheral nerves. It also provides products and education to improve surgical treatment algorithms for peripheral nerve damage or discontinuity. Its products include avance nerve graft, axoguard nerve connector, axoguard nerve protector, avive soft tissue membrane, acroval neurosensory and motor testing system, and axotouch two-point discriminator. The company was founded in 1977 and is headquartered in Alachua, FL.
How the Company Makes MoneyAxoGen generates revenue primarily through the sale of its proprietary surgical products designed for peripheral nerve repair and protection. Key revenue streams include the sales of Avance Nerve Graft, AxoGuard Nerve Connector, and AxoGuard Nerve Protector, which are used by hospitals and surgical centers. The company also invests in research and development to expand its product offerings and enhance existing technologies. AxoGen's earnings are supported by strategic partnerships with healthcare providers and ongoing education initiatives aimed at increasing the adoption of its products in surgical procedures.
AxoGen Financial Statement Overview
Summary
AxoGen shows positive revenue growth but struggles with profitability and cash flow generation. The balance sheet indicates potential financial instability with high leverage and negative equity. Improvements in operational efficiency and financial management are crucial for enhancing the company's financial health and long-term sustainability.Income Statement
AxoGen has demonstrated a steady revenue growth trajectory with a compound annual growth rate over the past five years. However, the company continues to face challenges in achieving profitability, as indicated by negative EBIT and net profit margins. The gross profit margin remains strong, suggesting efficient cost management in production. Continued focus on reducing operating losses could enhance profitability.62
Positive
Balance Sheet
The balance sheet reveals a challenging financial position with negative equity and increasing debt levels over time. The lack of reported equity in the latest period prevents calculation of key ratios like ROE and equity ratio, indicating potential financial instability. Historical data shows a high debt-to-equity ratio, reflecting leverage risk. Strengthening the balance sheet with improved equity and reduced debt could mitigate these risks.48
Neutral
Cash Flow
Cash flow analysis shows persistent negative free cash flow, highlighting cash management challenges. The absence of operating and free cash flow figures in the latest period limits comprehensive analysis. Historical data reflects negative operating cash flow to net income ratios, emphasizing the need for better cash flow management to support operational sustainability.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 187.34M | 159.01M | 138.58M | 127.36M | 112.30M | Gross Profit |
| 141.98M | 127.87M | 114.44M | 104.43M | 90.72M | EBIT |
| -3.29M | -21.46M | -29.71M | -25.42M | -23.18M | EBITDA |
| 6.08M | -13.33M | -23.47M | -20.89M | -19.27M | Net Income Common Stockholders |
| -9.96M | -21.72M | -27.34M | -28.06M | -24.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 33.48M | 31.02M | 48.79M | 84.09M | 103.97M | Total Assets |
| 203.73M | 196.83M | 195.39M | 208.02M | 201.38M | Total Debt |
| 68.69M | 69.29M | 67.43M | 67.45M | 53.76M | Net Debt |
| 41.13M | 38.27M | 52.14M | 34.70M | 5.00M | Total Liabilities |
| 99.82M | 101.16M | 94.39M | 95.47M | 78.23M | Stockholders Equity |
| 103.91M | 95.67M | 101.00M | 112.55M | 123.15M |
| Cash Flow | Free Cash Flow | |||
| 11.00K | -20.63M | -37.32M | -41.80M | -32.22M | Operating Cash Flow |
| 4.54M | -5.72M | -16.07M | -13.40M | -9.63M | Investing Cash Flow |
| -10.30M | 19.25M | -3.20M | -23.65M | -16.96M | Financing Cash Flow |
| 2.29M | 1.95M | 1.79M | 20.45M | 40.47M |
AxoGen Technical Analysis
Neutral
17.16
Price Trends
17.94
Negative
16.02
Positive
13.25
Positive
Market Momentum
-0.15
Positive
41.40
Neutral
14.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXGN, the sentiment is Neutral. The current price of 17.16 is below the 20-day moving average (MA) of 18.36, below the 50-day MA of 17.94, and above the 200-day MA of 13.25, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 41.40 is Neutral, neither overbought nor oversold. The STOCH value of 14.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AXGN.
AxoGen Risk Analysis
AxoGen disclosed 61 risk factors in its most recent earnings report. AxoGen 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
AxoGen Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $139.39B | 47.06 | 15.26% | 0.89% | 10.23% | -5.74% | |
78 Outperform | $12.92B | 31.61 | 7.82% | 2.43% | 4.58% | 55.99% | |
72 Outperform | $21.37B | 24.22 | 7.24% | 0.89% | 3.84% | -9.29% | |
55 Neutral | $772.47M | ― | -9.99% | ― | 17.81% | 54.69% | |
54 Neutral | $18.34B | 136.07 | -9.24% | 2.57% | -14.00% | -184.82% | |
52 Neutral | $1.85B | ― | -0.44% | ― | 4.47% | -110.70% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% |
* Healthcare Sector Average
Performance Comparison
AXGN
AxoGen
17.16
9.40
121.13%
BAX
Baxter International
34.41
-6.52
-15.93%
IART
Integra Lifesciences
22.24
-12.61
-36.18%
SNN
Smith & Nephew Snats
28.84
2.10
7.85%
SYK
Stryker
363.66
11.27
3.20%
ZBH
Zimmer Biomet Holdings
107.57
-17.09
-13.71%
AxoGen Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -4.72% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant revenue growth and improved profitability. Strategic initiatives and market expansion plans indicate a positive outlook, despite some challenges in specific segments like extremities and pending regulatory impacts.Highlights
Strong Revenue Growth
Full year 2024 revenue was $187.3 million, a 17.8% increase compared to 2023. Fourth quarter revenue increased to $49.4 million, up 15.1% compared to the prior year.
Improved Financial Performance
Net income of $0.4 million or $0.01 per share, compared to a net loss of $3.9 million or $0.09 per share in Q4 2023. Adjusted net income for the quarter was $3.5 million or $0.07 per share.
Positive Cash Flow and Financial Position
Maintained cash flow positivity with a cash, cash equivalents, and investments balance of $39.5 million at the end of December 2024.
BLA Application Progress
Submitted the BLA for Avance Nerve Graft in Q3 2024 with expected approval in September 2025, potentially providing 12 years of market exclusivity.
Strategic Plan for Growth
Announced a new strategic plan targeting a $5 billion TAM opportunity with a CAGR of 15% to 20% over the planning period, focusing on high-potential accounts and expanding into new markets like prostatectomy.
Lowlights
Challenges in Extremities Business
Growth in extremities impacted by commercial payer coverage policies and a complex patient journey, requiring strategies to drive advocacy and expand coverage.
Pending Regulatory Approval Impact
One-time costs related to the BLA approval, impacting full-year gross margin by approximately 1 percentage point. Most costs expected around the anticipated approval date.
Company Guidance
During Axogen's 2024 fiscal year-end call, the company outlined several key financial metrics and future guidance. The full-year revenue for 2024 was reported at $187.3 million, marking a 17.8% increase from 2023. Specifically, the fourth quarter revenue grew to $49.4 million, a 15.1% rise compared to the previous year, with an 11% increase in unit volume and mix and a 4% increase in price. Gross profit for Q4 was $37.6 million, translating to a gross margin of 76.1%, up from 74.6% in Q4 2023. Operating expenses for the same period were $35.6 million, with sales and marketing expenses decreasing as a percentage of total revenue to 40.6% from 46.9% the previous year. The company achieved a net income of $0.4 million or $0.01 per share, compared to a net loss in Q4 2023. For 2025, Axogen projected a revenue growth range of 15% to 17% and gross margin between 73% and 75%, factoring in one-time BLA approval costs. They also plan to maintain positive cash flow throughout the year, aiming to self-fund their strategic initiatives.AxoGen Corporate Events
Business Operations and StrategyFinancial Disclosures
AxoGen Unveils Strategic Priorities for 2025-2028
Positive
Mar 4, 2025
On March 4, 2025, AxoGen, Inc. released an updated corporate presentation outlining its strategic priorities for 2025-2028, including market development opportunities and financial guidance. The presentation highlights the company’s focus on expanding its market presence in nerve repair and its expectations for regulatory approvals, product innovation, and clinical evidence generation. AxoGen aims to strengthen its industry positioning by leveraging its extensive experience and partnerships, addressing the large and underserved nerve care market both in the U.S. and internationally.
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
AxoGen Reports Strong 2024 Financial Growth and FDA Progress
Positive
Feb 25, 2025
Axogen, Inc. reported its financial results for the fourth quarter and full year of 2024, showing significant growth with a 15.1% increase in fourth-quarter revenue compared to the previous year and a 17.8% increase in full-year revenue. The company achieved a net income of $0.4 million for the quarter and an adjusted net income of $5.9 million for the full year. Axogen’s CEO, Michael Dale, expressed satisfaction with the results and highlighted the company’s strategic focus on expanding its work in peripheral nerve function restoration. The FDA accepted Axogen’s Biologics License Application for Avance® Nerve Graft, with anticipated approval in September 2025, which could further enhance the company’s market position.
Business Operations and StrategyFinancial Disclosures
Axogen Reports Strong Revenue Growth and Market Expansion
Positive
Jan 10, 2025
Axogen, Inc. announced its preliminary unaudited financial results for the fourth quarter and full year of 2024, reporting a 15.1% increase in fourth-quarter revenue and a 17.8% increase for the full year over 2023. The company’s growth was driven by effective commercial strategies and increased adoption of their peripheral nerve surgical solutions, with expectations of a gross margin above 75.5% and cash reserves increasing by $2.5 million. This performance underscores Axogen’s strategic focus on expanding their market presence and standardizing peripheral nerve care across medical procedures.
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.