CVRx (CVRX) AI Stock Analysis

• Market Cap: $258.17M
• Dividend Yield: N/A
• Average Volume (3M): 250.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 18.44%
• EPS Growth: 25.42%
• Country: US
• Employees: 206
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.49
• Shares Outstanding: 26,210,110
• 10 Day Avg. Volume: 312,621
• 30 Day Avg. Volume: 250,791
• PEG Ratio: -0.14
• Price to Book (P/B): 4.03
• Price to Sales (P/S): 5.58
• P/FCF Ratio: -7.07
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 3.15
• Enterprise Value/Gross Profit: 3.71
• Enterprise Value/Ebitda: -3.89
• 1Y Price Target: $12.67
• Price Target Upside: 36.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $9.00 ▼(-2.91% Downside)

CVRx's overall stock score is primarily impacted by its financial performance challenges, including high operating losses and negative cash flows. While the earnings call provided some positive insights, such as revenue growth and strategic progress, the technical indicators suggest potential bearish momentum. The valuation remains a concern due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for CVRx's products, supporting long-term market expansion and financial stability.

Reimbursement Improvements

Improved reimbursement strategies enhance revenue predictability and support broader adoption of CVRx's Barostim Therapy, strengthening market position.

Expansion of Implanting Centers

Expanding implanting centers increases market penetration and accessibility, driving future revenue growth and reinforcing CVRx's competitive edge.

Negative Factors

Net Loss

Ongoing net losses highlight challenges in achieving profitability, which could strain resources and limit strategic investments over time.

Rising SG&A Expenses

Higher SG&A expenses reduce operating efficiency, potentially impacting margins and delaying the path to profitability if not managed effectively.

Interest Expense Rise

Increased interest expenses from higher borrowings can pressure cash flows and limit financial flexibility, affecting long-term financial health.

CVRx Business Overview & Revenue Model

Company Description

CVRx, Inc. is a medical device company focused on developing innovative therapies for patients with cardiovascular diseases. The company specializes in implantable technologies that target hypertension and heart failure, with its flagship product being the Barostim Therapy system. This system is designed to improve heart function and reduce blood pressure by stimulating the baroreceptors in the carotid artery. CVRx operates primarily in the healthcare sector, aiming to enhance patient outcomes through its advanced medical devices.

How the Company Makes Money

CVRx generates revenue primarily through the sale of its Barostim Therapy systems and related products, which are sold to hospitals and healthcare providers. The company has established key partnerships with medical institutions and health systems to promote the adoption of its technology. Additionally, CVRx benefits from reimbursements from healthcare payers for the procedures involving its devices, which is a significant revenue stream. The company may also engage in clinical studies and collaborations that can lead to new product developments, further enhancing its revenue potential.

CVRx Financial Statement Overview

Summary

CVRx shows strong revenue growth and a solid gross profit margin, but faces significant challenges with profitability and cash flow management. High operating losses and negative cash flows are major concerns.

Income Statement

CVRx has shown consistent revenue growth, with a TTM revenue growth rate of 2.41%. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin remains strong at 84.04%, suggesting efficient production processes, but the high operating losses are a concern.

Balance Sheet

The debt-to-equity ratio has increased to 0.87 in the TTM, indicating rising leverage, though it remains manageable. The return on equity is negative, reflecting ongoing losses. The equity ratio is relatively stable, suggesting a balanced asset structure, but the company needs to improve profitability to enhance financial stability.

Cash Flow

CVRx's cash flow situation is challenging, with negative operating and free cash flows. The free cash flow to net income ratio is slightly above 1, indicating that cash flow generation is aligned with reported losses. However, the negative free cash flow growth rate and operating cash flow coverage ratio highlight liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.97M	51.29M	39.30M	22.47M	13.04M	6.05M
Gross Profit	47.56M	42.96M	33.04M	17.47M	9.40M	4.61M
EBITDA	-45.43M	-54.89M	-38.73M	-40.74M	-40.60M	-11.48M
Net Income	-52.02M	-59.97M	-41.20M	-41.43M	-43.08M	-14.11M
Balance Sheet
Total Assets	111.33M	133.41M	115.23M	124.94M	152.55M	64.78M
Cash, Cash Equivalents and Short-Term Investments	85.12M	105.93M	90.57M	106.19M	142.07M	59.11M
Total Debt	50.18M	50.43M	30.61M	7.09M	0.00	19.28M
Total Liabilities	63.27M	62.36M	39.28M	15.76M	6.59M	358.01M
Stockholders Equity	48.05M	71.06M	75.95M	109.18M	145.96M	-293.24M
Cash Flow
Free Cash Flow	-28.98M	-40.51M	-39.61M	-43.36M	-28.91M	-16.41M
Operating Cash Flow	-28.71M	-39.14M	-39.02M	-42.68M	-27.73M	-16.10M
Investing Cash Flow	-269.00K	-1.36M	-591.00K	-685.00K	-1.18M	-311.00K
Financing Cash Flow	23.84M	55.87M	23.98M	7.49M	111.88M	49.78M

CVRx Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVRX, the sentiment is Positive. The current price of 9.27 is below the 20-day moving average (MA) of 9.78, above the 50-day MA of 9.09, and above the 200-day MA of 8.66, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.83 is Neutral, neither overbought nor oversold. The STOCH value of 65.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVRX.

CVRx Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELMD	76 Outperform	$220.36M	28.42	19.02%	―	16.05%	29.48%
VMD	68 Neutral	$260.80M	20.75	10.53%	―	18.90%	29.22%
XTNT	60 Neutral	$103.88M	-20.78	3.64%	―	16.88%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CVRX	49 Neutral	$258.17M	―	-91.88%	―	18.44%	25.42%
INGN	48 Neutral	$192.21M	―	-13.27%	―	4.68%	55.37%
NNOX	47 Neutral	$278.00M	―	-34.75%	―	15.19%	-3.32%

CVRx Corporate Events

Cvrx, Inc. Earnings Call: Revenue Growth Amid Challenges

The recent earnings call of Cvrx, Inc. painted a picture of significant progress, marked by a commendable increase in revenue, an expanded commercial footprint, and improved gross margins. Despite these positive strides, the company faces challenges, including increased R&D expenses, higher interest expenses, and a net loss. Encouragingly, the positive developments in clinical evidence and the approval of a Category I CPT code signal promising avenues for future growth.

CVRx Reports Revenue Growth Amid Strategic Expansion

CVRx, Inc. is a commercial-stage medical device company specializing in innovative neuromodulation solutions for cardiovascular diseases, with its flagship product, Barostim, being the first FDA-approved technology of its kind for heart failure patients.