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CVRx (CVRX)
NASDAQ:CVRX
US Market

CVRx (CVRX) AI Stock Analysis

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CVRx

(NASDAQ:CVRX)

50Neutral
CVRx shows strong revenue growth and expansion in key markets, particularly in the U.S., which are significant positives. However, the company faces challenges with profitability, high operating expenses, and reliance on external funding. Technical indicators suggest bearish momentum, and valuation metrics are weak due to ongoing losses. The combination of these factors results in a moderate score, reflecting both opportunities and risks for potential investors.
Positive Factors
Clinical Data
Real-world evidence shows significant reduction in hospitalization, strengthening the use case of Barostim beyond quality-of-life improvements.
Financial Performance
CVRx announced final Q4 revenue of $15.3M, showing a year-over-year increase of 36% and a quarter-over-quarter increase of 15%.
Growth Potential
CVRx is seen as an attractive buying opportunity into a high-growth medical device company fulfilling an unmet need in a $2.2B total addressable market.
Negative Factors
Market Coverage
The number of sales territories decreased from 48 to 45, below the analyst's projected 51, indicating potential challenges in market coverage.
Sales Performance
Preliminary Q1 revenue was short of expectations due to a slower ramp-up from new reps and seasonal procedure softness.
Valuation
The price target is decreased from $23 to $18, reflecting a less favorable valuation based on updated market conditions and company performance expectations.

CVRx (CVRX) vs. S&P 500 (SPY)

CVRx Business Overview & Revenue Model

Company DescriptionCVRx, Inc., a commercial-stage medical device company, focuses on developing, manufacturing, and commercializing neuromodulation solutions for patients with cardiovascular diseases. It offers Barostim, a neuromodulation device indicated to improve symptoms for patients with heart failure (HF) with reduced ejection fraction or systolic HF. The company sells its products through direct sales force, as well as sales agents and independent distributors in the United States, Germany, rest of Europe, and internationally. CVRx, Inc. was incorporated in 2000 and is headquartered in Minneapolis, Minnesota.
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
55
Neutral
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.
Balance Sheet
60
Neutral
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.
Cash Flow
50
Neutral
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
51.29M39.30M22.47M13.04M6.05M
Gross Profit
42.96M33.04M17.47M9.40M4.61M
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 SheetCash, Cash Equivalents and Short-Term Investments
105.93M90.57M106.19M142.07M59.11M
Total Assets
133.41M115.23M124.94M152.55M64.78M
Total Debt
50.15M30.61M7.09M0.0019.28M
Net Debt
-55.78M-59.96M-99.11M-142.07M-39.83M
Total Liabilities
62.36M39.28M15.76M6.59M358.01M
Stockholders Equity
71.06M75.95M109.18M145.96M-293.24M
Cash FlowFree 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
55.87M23.98M7.49M111.88M49.78M

CVRx Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.11
Price Trends
50DMA
11.15
Negative
100DMA
12.94
Negative
200DMA
11.48
Negative
Market Momentum
MACD
-1.68
Positive
RSI
30.19
Neutral
STOCH
36.69
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 6.11 is below the 20-day moving average (MA) of 8.71, below the 50-day MA of 11.15, and below the 200-day MA of 11.48, indicating a bearish trend. The MACD of -1.68 indicates Positive momentum. The RSI at 30.19 is Neutral, neither overbought nor oversold. The STOCH value of 36.69 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
$162.94M-95.42%26.87%-104.94%
67
Neutral
$158.82M54.135.62%29.04%
57
Neutral
$199.97M-51.56%18.72%-86.45%
53
Neutral
$183.95M271.41%169.66%28.89%
MYMYO
51
Neutral
$154.37M-36.69%69.17%39.01%
51
Neutral
$5.20B3.26-40.34%2.93%17.68%1.94%
50
Neutral
$157.00M-81.58%30.53%-35.97%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CVRX
CVRx
6.48
-7.91
-54.97%
MYO
Myomo
4.88
1.46
42.69%
BWAY
Brainsway
9.12
4.32
90.00%
LNSR
LENSAR
13.89
10.46
304.96%
MASS
908 Devices
5.23
-0.33
-5.94%
TLSI
TriSalus Life Sciences
5.65
-4.28
-43.10%

CVRx Earnings Call Summary

Earnings Call Date: Feb 4, 2025 | % Change Since: -62.40% | Next Earnings Date: May 8, 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.