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CVRx (CVRX)
NASDAQ:CVRX
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CVRx
(NASDAQ:CVRX)
54Neutral
Positive Factors
Clinical Impact
Real-world evidence shows significant reduction in hospitalization - strengthens use case beyond QoL.
Financial Performance
CVRX reported Q4/24 revenue of $15.3M (+36% Y/Y), which was on the higher end of the preannounced guidance range and ahead of both analyst and consensus estimates.
Market Potential
CVRx is seen as a high-growth cardiovascular MedTech company with significant market potential, enhancing its 'scarcity' value in a multibillion-dollar total addressable market.
Negative Factors
Data Limitations
Limitations to this data included that the study was run by CVRX and used a claims database with a lack of control group.
Operational Costs
Management expects OpEx of $100M-$104M, above our $92.8M FY25 estimate.
CVRx (CVRX) vs. S&P 500 (SPY)
Market Cap
$326.23M
Dividend YieldN/A
Average Volume (3M)214.16K
Price to Earnings (P/E)―
Beta (1Y)2.00
Revenue Growth30.53%
EPS Growth-35.97%
CountryUS
Employees206
SectorHealthcare
Sector Strength78
IndustryMedical - Devices
Share Statistics
EPS (TTM)-2.70
Shares Outstanding26,036,032
10 Day Avg. Volume168,198
30 Day Avg. Volume214,165
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)6.34
Price to Cash Flow (P/CF)-10.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.40Price Target Upside58.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
CVRx Business Overview & Revenue Model
Company DescriptionCVRx, Inc. is a medical device company specializing in innovative therapies for cardiovascular diseases. The company is focused on the development and commercialization of neuromodulation devices designed to treat heart failure and other cardiovascular conditions. Its flagship product is the Barostim System, an implantable device that uses baroreflex activation therapy to improve the function of the cardiovascular system.
How the Company Makes MoneyCVRx primarily makes money through the sale of its Barostim System. The company's revenue model is based on direct sales to hospitals and healthcare providers who purchase the device for implantation in patients suffering from heart failure and related conditions. Key revenue streams include initial device sales, as well as ongoing revenue from replacement components and related services. The company also benefits from significant partnerships with healthcare institutions and providers, along with potential reimbursement from health insurance companies, which can impact the adoption and sales of its products.
CVRx Financial Statement Overview
Summary
CVRx shows promising revenue growth and strong gross profit margins but struggles with profitability and cash flow. The balance sheet has improved, moving from negative to positive equity, yet the company remains reliant on external funding to cover cash shortfalls.Income Statement
CVRx has shown consistent revenue growth over the years, with a notable increase in total revenue from $6.05 million in 2020 to $51.29 million in 2024. Despite the revenue growth, the company is still facing profitability challenges, as evidenced by negative net income and EBIT margins. The gross profit margin has been strong, remaining above 80% in recent years, indicating effective cost management in production. However, the persistent net loss indicates that operational and other costs are overshadowing revenue gains, which is a concern for sustainable profitability.55
Neutral
Balance Sheet
The company's balance sheet shows a robust equity position, transitioning from negative equity in 2020 to positive equity in subsequent years, indicating improved financial health. The debt-to-equity ratio is manageable, but net debt levels are negative, suggesting high cash reserves relative to debt. However, the high total liabilities in earlier years, particularly relative to assets, and the lack of positive net income pose risks to financial stability. The equity ratio has improved, reflecting a strengthening financial position.60
Neutral
Cash Flow
CVRx has demonstrated consistent negative operating cash flows, suggesting operational inefficiencies or high cash burn rates. Despite negative free cash flow, the company has managed to maintain adequate liquidity through financing activities, indicating potential reliance on external funding. The free cash flow to net income ratio is negative, which is concerning for future cash generation capabilities. Improvements in financing cash flow are apparent, but the sustainability of this reliance on external funds is uncertain.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 51.29M | 39.30M | 22.47M | 13.04M | 6.05M | Gross Profit |
| 42.96M | 33.04M | 17.47M | 9.40M | 4.61M | EBIT |
| -59.49M | -43.10M | -42.53M | -25.97M | -11.51M | EBITDA |
| -54.89M | -38.73M | -40.74M | -40.60M | -11.48M | Net Income Common Stockholders |
| -59.97M | -41.20M | -41.43M | -43.08M | -14.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 105.93M | 90.57M | 106.19M | 142.07M | 59.11M | Total Assets |
| 133.41M | 115.23M | 124.94M | 152.55M | 64.78M | Total Debt |
| 50.15M | 30.61M | 7.09M | 0.00 | 19.28M | Net Debt |
| -55.78M | -59.96M | -99.11M | -142.07M | -39.83M | Total Liabilities |
| 62.36M | 39.28M | 15.76M | 6.59M | 358.01M | Stockholders Equity |
| 71.06M | 75.95M | 109.18M | 145.96M | -293.24M |
| Cash Flow | Free Cash Flow | |||
| -40.51M | -39.61M | -43.36M | -28.91M | -16.41M | Operating Cash Flow |
| -39.14M | -39.02M | -42.68M | -27.73M | -16.10M | Investing Cash Flow |
| -1.36M | -591.00K | -685.00K | -1.18M | -311.00K | Financing Cash Flow |
| 55.87M | 23.98M | 7.49M | 111.88M | 49.78M |
CVRx Technical Analysis
Negative
12.27
Price Trends
13.66
Negative
14.01
Negative
11.78
Positive
Market Momentum
-0.25
Negative
48.53
Neutral
43.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVRX, the sentiment is Negative. The current price of 12.27 is above the 20-day moving average (MA) of 12.10, below the 50-day MA of 13.66, and above the 200-day MA of 11.78, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 48.53 is Neutral, neither overbought nor oversold. The STOCH value of 43.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVRX.
CVRx Risk Analysis
CVRx disclosed 54 risk factors in its most recent earnings report. CVRx 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
CVRx Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $18.48B | 46.49 | 43.03% | ― | 22.07% | 101.95% | |
64 Neutral | $8.23B | 116.65 | -25.23% | ― | 2.26% | -467.23% | |
60 Neutral | $3.33B | ― | -75.27% | ― | 20.13% | 10.05% | |
59 Neutral | $143.59M | ― | -144.19% | ― | 0.55% | -8.47% | |
54 Neutral | $326.23M | ― | -81.58% | ― | 30.53% | -35.97% | |
51 Neutral | $269.02M | ― | -55.25% | ― | 22.01% | 10.02% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% |
* Healthcare Sector Average
Performance Comparison
CVRX
CVRx
12.27
-5.41
-30.60%
PODD
Insulet
256.80
91.80
55.64%
MASI
Masimo
152.37
9.87
6.93%
STXS
Stereotaxis
1.67
-1.53
-47.81%
IRTC
Irhythm Technologies
105.92
-5.84
-5.23%
LUNG
Pulmonx
6.76
-1.48
-17.96%
CVRx Earnings Call Summary
Earnings Call Date: Feb 4, 2025 | % Change Since: -24.49% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and successful expansion in the U.S. market, alongside key reimbursement milestones and educational initiatives. However, challenges were noted in the European market, and there were increased operating expenses and interest expenses leading to a higher net loss.Highlights
Strong Revenue Growth
CVRx reported total revenue of $15.3 million for Q4 2024, representing a growth of 36% over the fourth quarter of 2023. U.S. Heart Failure revenue grew by 41%.
Expansion and Market Penetration
The company expanded to 48 territories in the United States, ending the year with 223 active and planning centers, up from 178 at the end of 2023.
Reimbursement Milestones
CMS maintained Barostim in the new technology APC 1580 for 2025, preserving the reimbursement level of approximately $45,000 for outpatient procedures. Inpatient payment increased from $23,000 to approximately $43,000.
New Category 1 CPT Codes
The American Medical Association accepted new Category 1 CPT codes for Barostim therapy, expected to be implemented on January 1, 2026, which will improve prior authorization throughput.
Clinical Evidence and Education Initiatives
CVRx expanded educational programs and published a long-term post-COVID data set showing a five-fold decrease in hospitalization one year after Barostim therapy.
Lowlights
European Market Performance
Revenue generated in Europe remained flat at $1 million for Q4 2024 compared to Q4 2023, with a decrease in total revenue units from 52 to 41.
Increased Operating Expenses
Research and development expenses increased by 25%, and SG&A expenses increased by 19% compared to the same period last year, driven by increased headcount and compensation expenses.
Interest Expense and Net Loss
Interest expense increased to $1.5 million from $0.9 million, and the net loss was $10.7 million for Q4 2024, compared to a net loss of $9.2 million for the same period last year.
Company Guidance
During the CVRx Fourth Quarter 2024 Earnings Call, the company provided financial guidance for 2025, projecting total revenue between $63 million and $65 million and a gross margin of 83% to 84%. Operating expenses are expected to range from $100 million to $104 million. For the first quarter of 2025, the company anticipates revenue between $14.5 million and $15 million. In 2024, CVRx achieved a revenue growth of 36% over the previous year's fourth quarter, driven by a 41% increase in U.S. Heart Failure revenue. The company is focusing on building a sustainable Barostim program in target centers, optimizing reimbursement strategies, and expanding clinical evidence to support adoption. Key changes include transitioning to Category 1 CPT codes by January 2026, which will enhance prior authorization processes and expand market access.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.