Artivion, Inc. (NYSE: AORT)

Sector: Healthcare Industry: Medical Devices CIK: 0000784199
Market Cap 1.45 Bn
P/B 3.31
P/E -158.70
P/S 3.43
ROIC (Qtr) 2.96
Div Yield % 0.00
Rev 1y % (Qtr) 18.39
Total Debt (Qtr) 261.99 Mn
Debt/Equity (Qtr) 0.60
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About

Artivion, Inc., with the stock symbol AORT, operates in the medical device industry, specifically focusing on the manufacturing, processing, and distribution of medical devices and implantable human tissues used in cardiac and vascular surgical procedures for patients with aortic disease. The company's main business activities revolve around providing innovative solutions for patients with aortic disease, including heart valve disease, aortic aneurysms and dissections, and other conditions in cardiac and vascular surgery. Artivion's operations span...

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Investment thesis

Bull case

  • Healthy cash reserves of 73.43M provide 12.66x coverage of short-term debt 5.80M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 446.82M provide robust 7.03x coverage of other current liabilities 63.54M, indicating strong asset backing.
  • Cash reserves of 73.43M provide robust 0.86x coverage of current liabilities 85.84M, indicating strong short-term solvency.
  • Cash reserves of 73.43M provide solid 0.95x coverage of other non-current liabilities 76.94M, indicating strong liquidity.
  • Tangible assets of 446.82M provide robust 5.21x coverage of current liabilities 85.84M, showing strong asset backing.

Bear case

  • Operating cash flow of 30.46M barely covers its investment activities of (22.96M), with a coverage ratio of -1.33, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (22.96M) provide weak support for R&D spending of 29.27M, which is -0.78x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 73.43M provide limited coverage of acquisition spending of (17M), which is -4.32x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 30.46M shows concerning coverage of stock compensation expenses of 23.05M, with a 1.32 ratio indicating potential earnings quality issues.
  • Operating earnings of 22.43M show weak coverage of depreciation charges of 25.88M, with a 0.87 ratio indicating high capital intensity and potential reinvestment needs.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Devices
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ABT Abbott Laboratories 173.80 Bn 32.73 5.47 12.94 Bn
2 SYK Stryker Corp 141.15 Bn 43.48 5.62 15.86 Bn
3 MDT Medtronic plc 123.47 Bn 25.92 3.55 29.10 Bn
4 BSX Boston Scientific Corp 112.80 Bn 38.92 5.62 11.44 Bn
5 EW Edwards Lifesciences Corp 45.66 Bn 33.38 7.76 0.70 Bn
6 DXCM Dexcom Inc 27.52 Bn 32.91 5.90 1.34 Bn
7 STE STERIS plc 24.13 Bn 34.08 4.14 2.05 Bn
8 PODD Insulet Corp 17.33 Bn 70.38 6.87 1.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.94 2.13
EV to Cash from Ops. EV/CFO 54.53 2.75
EV to Debt EV to Debt 6.34 17.25
EV to EBIT EV/EBIT 74.03 2.89
EV to EBITDA EV/EBITDA 34.52 4.53
EV to Free Cash Flow [EV/FCF] EV/FCF 94.91 29.36
EV to Market Cap EV to Market Cap 1.14 25.09
EV to Revenue EV/Rev 3.93 32.80
Price to Book Value [P/B] P/B 3.31 4.73
Price to Earnings [P/E] P/E -158.70 -2.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 40.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.59
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.37
Interest Coverage Int. cover (Qtr) 0.73 196.93
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -4.24 -152.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 30.71 8,476.58
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -0.44
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 723.70 -792.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -29.29 3.79
EBIT Growth (1y) % EBIT 1y % (Qtr) -42.88 -301.80
EBT Growth (1y) % EBT 1y % (Qtr) -198.38 -121.44
EPS Growth (1y) % EPS 1y % (Qtr) -1,050.00 -87.51
FCF Growth (1y) % FCF 1y % (Qtr) 66.62 10.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.75 38.21
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.49 0.55
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.86 1.80
Current Ratio Curr Ratio (Qtr) 3.93 4.18
Debt to Equity Ratio Debt/Equity (Qtr) 0.60 1.20
Interest Cover Ratio Int Coverage (Qtr) 0.73 196.93
Times Interest Earned Times Interest Earned (Qtr) 0.73 196.93
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.40 -2,396.63
EBIT Margin % EBIT Margin % (Qtr) 5.31 -2,478.60
EBT Margin % EBT Margin % (Qtr) -1.98 -2,690.42
Gross Margin % Gross Margin % (Qtr) 64.50 30.80
Net Profit Margin % Net Margin % (Qtr) -2.20 -2,821.53