Vericel Corp (NASDAQ: VCEL)

Sector: Healthcare Industry: Biotechnology CIK: 0000887359
P/B 5.71
P/E 140.54
P/S 7.11
Market Cap 1.84 Bn
ROIC (Qtr) 1.72
Div Yield % 0.00
Rev 1y % (Qtr) 16.58
Total Debt (Qtr) 98.01 Mn
Debt/Equity (Qtr) 0.30

About

Vericel Corp, known by its ticker symbol VCEL, is a prominent player in the biopharmaceutical industry, specifically focusing on advanced therapies for the sports medicine and severe burn care markets. The company's offerings are a testament to the fusion of biological innovations and medical technologies, all aimed at repairing serious injuries and restoring lives. Vericel's business activities revolve around the development, manufacturing, and marketing of its unique portfolio of cell therapy and specialty biologic products. These activities...

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Analysis

Pros

  • Strong operating cash flow of 59.14M provides robust 0.60x coverage of total debt 98.01M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 100.40M provide 7.25x coverage of short-term debt 13.85M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 447.49M provides 4.57x coverage of total debt 98.01M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 59.14M provides exceptional 95.08x coverage of interest expenses 622000, showing strong debt service capability.
  • Long-term investments of 49.66M provide solid 0.59x coverage of long-term debt 84.16M, indicating strategic financial planning.

Cons

  • Operating cash flow of 59.14M barely covers its investment activities of (42.20M), with a coverage ratio of -1.40, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (42.20M) provide weak support for R&D spending of 25.23M, which is -1.67x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 60.43M relative to inventory of 18.16M (3.33 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 59.14M shows concerning coverage of stock compensation expenses of 38.26M, with a 1.55 ratio indicating potential earnings quality issues.
  • Operating earnings of 13.85M show weak coverage of depreciation charges of 15.46M, with a 0.90 ratio indicating high capital intensity and potential reinvestment needs.

Peer Comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,349.40 Bn -1,464.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 437.43 Bn 6,381.20 87.97 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 116.09 Bn 31.59 9.90 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 78.10 Bn 17.06 5.48 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.87 Bn 1,282.42 17.40 3.21 Bn
6 ARGX Argenx Se 52.85 Bn 35.08 27,559.65 -
7 BNTC Benitec Biopharma Inc. 41.75 Bn -998.33 0.00 0.00 Bn
8 INSM INSMED Inc 37.80 Bn -31.93 84.56 0.74 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 4.10 12.31
EV to Cash from Ops. 31.41 23.25
EV to Debt 18.96 738.44
EV to EBIT 134.11 -9.16
EV to EBITDA 82.32 6.95
EV to Free Cash Flow [EV/FCF] 91.17 21.90
EV to Market Cap 1.01 65.67
EV to Revenue 7.18 227.32
Price to Book Value [P/B] 5.71 22.34
Price to Earnings [P/E] 140.54 -11.77

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -11.94
Dividend Payout Ratio % 0.00 0.16
Dividend per Basic Share 0.00 0.01
FCF Dividend Payout Ratio % 0.00 -0.14
Interest Coverage 22.27 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 33.19 -27.13
Cash and Equivalents Growth (1y) % 42.72 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 240.87 -46.93
EBITDA Growth (1y) % 107.70 -1.68
EBIT Growth (1y) % 163.15 -56.45
EBT Growth (1y) % 184.64 -12.70
EPS Growth (1y) % 271.43 -28.31
FCF Growth (1y) % 269.59 -31.90
Gross Profit Growth (1y) % 17.80 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.57 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 2.20 3.85
Current Ratio 4.87 7.27
Debt to Equity Ratio 0.30 0.40
Interest Cover Ratio 22.27 841.00
Times Interest Earned 22.27 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % 11.30 -18,234.31
EBIT Margin % 5.35 -18,580.80
EBT Margin % 5.11 -19,488.74
Gross Margin % 73.80 -7.59
Net Profit Margin % 5.10 -19,439.22