AtriCure, Inc. Fundamental Analysis (NASDAQ: ATRC)
AtriCure, Inc. Fundamental Analysis (NASDAQ: ATRC)
AtriCure, Inc. (NASDAQ: ATRC) shows weak financial fundamentals with a PE ratio of 153.69, profit margin of 1.85%, and ROE of 2.14%. The company generates $0.6B in annual revenue with strong year-over-year growth of 14.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ATRC's fundamental strength across five key dimensions:
Efficiency Score
WeakATRC struggles to generate sufficient returns from assets.
Valuation Score
ModerateATRC shows balanced valuation metrics.
Growth Score
ExcellentATRC delivers strong and consistent growth momentum.
Financial Health Score
ExcellentATRC maintains a strong and stable balance sheet.
Profitability Score
ModerateATRC maintains healthy but balanced margins.
Key Financial Metrics
Is ATRC Expensive or Cheap?
P/E Ratio
ATRC trades at 153.69 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ATRC's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values AtriCure, Inc. at 3.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 67.26 times EBITDA. This signals the market has high growth expectations.
How Well Does ATRC Make Money?
Net Profit Margin
For every $100 in sales, AtriCure, Inc. keeps $1.85 as profit after all expenses.
Operating Margin
Core operations generate 2.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.14 in profit for every $100 of shareholder equity.
ROA
AtriCure, Inc. generates $1.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AtriCure, Inc. produces operating cash flow of $67.20M, showing steady but balanced cash generation.
Free Cash Flow
AtriCure, Inc. produces free cash flow of $56.01M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.11 in free cash annually.
FCF Yield
ATRC converts 3.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
153.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How ATRC Stacks Against Its Sector Peers
| Metric | ATRC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 153.69 | 29.34 | Worse (Expensive) |
| ROE | 2.14% | 470.00% | Weak |
| Net Margin | 1.85% | -71064.00% (disorted) | Weak |
| Debt/Equity | 0.14 | 0.84 | Strong (Low Leverage) |
| Current Ratio | 4.22 | 5.17 | Strong Liquidity |
| ROA | 1.56% | -26.00% (disorted) | Weak |
ATRC outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AtriCure, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
128.32%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
79.03%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
354.57%
Industry Style: Defensive, Growth, Innovation
High Growth