CVRx (CVRX) AI Stock Analysis

• Market Cap: $173.38M
• Dividend Yield: N/A
• Average Volume (3M): 513.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: 25.62%
• EPS Growth: 11.86%
• Country: US
• Employees: 206
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Devices
• EPS (TTM): -0.53
• Shares Outstanding: 26,072,600
• 10 Day Avg. Volume: 780,479
• 30 Day Avg. Volume: 513,816
• PEG Ratio: -2.54
• Price to Book (P/B): 3.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.60
• Price Target Upside: 89.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 52 Neutral
• Price Target: $6.00 ▼( -9.77% Downside)

CVRx's stock score reflects solid revenue growth but is weighed down by profitability challenges and weak technical indicators. The earnings call provided a positive long-term outlook, but short-term obstacles like sales force realignment and seasonality remain. Valuation metrics indicate concerns about profitability, impacting the stock's attractiveness.

Positive Factors

Barostim Market Potential

Barostim is seen as a differentiated solution in a large and under-penetrated market with little to no treatment options for the majority of patients.

Compensation Plan

Management is already seeing positive validation of its decision, also noting the implementation of its new compensation plan has allowed it to attract veteran talent.

Financial Liquidity

The company continues to have adequate liquidity with over $100M of cash.

Negative Factors

Market Coverage Challenges

The number of sales territories decreased from 48 to 45, which was below the analyst's projected 51, indicating a potential challenge in market coverage.

Revenue Miss

The Q1/25 revenue of ~$12.3M missed the analyst's estimate of $14.5M and the consensus of $14.7M, which may lead to a poor stock reaction.

Salesforce Disruption

The planned salesforce reorganization led to greater than expected turnover and account disruption, resulting in lowered guidance.

CVRx Business Overview & Revenue Model

Company Description

CVRx, 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 Money

CVRx 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 6.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 6.65 is below the 20-day moving average (MA) of 6.71, below the 50-day MA of 8.59, and below the 200-day MA of 11.23, indicating a bearish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 75.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVRX.

CVRx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWAY	77 Outperform	$200.19M	48.15	7.41%	―	26.86%	―
MASS	54 Neutral	$177.15M	―	-44.97%	―	21.06%	-99.70%
MYO	53 Neutral	$115.49M	―	-35.68%	―	69.17%	39.01%
Sector *	53 Neutral	$5.14B	3.06	-43.57%	2.81%	16.81%	-0.12%
LNSR	52 Neutral	$166.43M	―	-304.05%	―	28.24%	-334.39%
CVRX	52 Neutral	$173.38M	―	-76.01%	―	25.62%	11.86%
TLSI	51 Neutral	$203.20M	―	271.41%	―	85.03%	53.73%