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Vericel Corp (VCEL)
NASDAQ:VCEL
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Vericel
(NASDAQ:VCEL)67Neutral
Positive Factors
Earnings
VCEL posted a strong quarter, meeting its preliminary revenue results and beating its FY25 margin guidance.
Product Adoption
Hospital orders for NexoBrid increased by 42% in 4Q24 compared to the prior quarter, which could be a leading indicator of growth in NexoBrid adoption.
Negative Factors
Product Performance
VCEL's Burn Care franchise continues to be a source of variability to VCEL's quarterly performance, partially responsible for soft sales guidance.
Vericel (VCEL) vs. S&P 500 (SPY)
Market Cap
$2.44B
Dividend YieldN/A
Average Volume (3M)406.51K
Price to Earnings (P/E)264.6
Beta (1Y)1.42
Revenue Growth22.48%
EPS GrowthN/A
CountryUS
Employees314
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)0.18
Shares Outstanding49,969,566
10 Day Avg. Volume532,602
30 Day Avg. Volume406,508
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)10.44
Price to Cash Flow (P/CF)27.80
P/FCF Ratio27.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$63.86Price Target Upside30.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Vericel Business Overview & Revenue Model
Company DescriptionVericel Corporation (VCEL) is a biotechnology company specializing in advanced cell therapies for the treatment of severe diseases and conditions. Headquartered in the United States, Vericel operates primarily within the regenerative medicine sector, focusing on developing and commercializing autologous cell-based therapies. Its core products include MACI, a tissue-engineered autologous cellularized scaffold for repairing cartilage defects in the knee, and Epicel, a permanent skin replacement for patients with severe burns.
How the Company Makes MoneyVericel generates revenue primarily through the sale of its cell therapy products, MACI and Epicel. The company earns income by manufacturing and delivering these products to hospitals and healthcare providers, who then use them to treat patients. Revenue is largely driven by the volume of MACI and Epicel procedures performed, which is influenced by factors such as the prevalence of knee cartilage injuries and burn incidents, physician adoption rates, and insurance reimbursement policies. Vericel may also engage in strategic partnerships or collaborations that can contribute to its revenue, although the primary focus remains on its proprietary products.
Vericel Financial Statement Overview
Summary
Vericel has shown strong revenue growth and robust cash flow performance, with effective cost management and a manageable debt profile. The company's improving profitability is supported by a strong equity base, though there is room for enhancing net margins.Income Statement
Vericel has demonstrated strong revenue growth with a 20.1% increase from 2023 to 2024, indicating a solid upward trajectory. The gross profit margin improved to 72.5% in 2024, reflecting effective cost management. However, net profit margin at 4.4% remains modest, suggesting room for improvement in profitability optimization. EBIT margin turned positive at 1.9%, a notable recovery from negative margins, enhancing operational efficiency.75
Positive
Balance Sheet
The balance sheet is stable with a debt-to-equity ratio of 0.34, indicating manageable leverage. Return on equity improved to 3.5%, signaling enhanced shareholder value. The equity ratio stands at 67.5%, highlighting a strong equity base. These metrics reflect a solid financial footing but suggest potential for increased returns on equity.70
Positive
Cash Flow
Vericel's cash flow performance is robust, with a significant increase in free cash flow, driven by a 64.6% rise in operating cash flow from 2023 to 2024. The operating cash flow to net income ratio of 5.6 indicates strong cash generation capability relative to net income. These positive cash flow dynamics underpin financial stability and growth potential.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 237.22M | 197.52M | 164.37M | 156.18M | 124.18M | Gross Profit |
| 172.11M | 135.58M | 109.79M | 106.03M | 84.23M | EBIT |
| 4.52M | -6.46M | -17.06M | -7.85M | 667.00K | EBITDA |
| 16.63M | 2.86M | -11.64M | -4.61M | 9.88M | Net Income Common Stockholders |
| 10.36M | -3.18M | -16.71M | -7.47M | 2.86M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 116.21M | 109.56M | 119.54M | 103.40M | 75.81M | Total Assets |
| 432.72M | 353.66M | 273.00M | 243.71M | 205.61M | Total Debt |
| 98.85M | 88.04M | 47.57M | 50.10M | 53.18M | Net Debt |
| 24.33M | 18.95M | -3.50M | -18.23M | 19.56M | Total Liabilities |
| 140.75M | 127.70M | 80.73M | 73.24M | 71.35M | Stockholders Equity |
| 291.97M | 225.95M | 192.27M | 170.46M | 134.26M |
| Cash Flow | Free Cash Flow | |||
| 58.16M | 7.80M | 10.09M | 21.13M | 14.95M | Operating Cash Flow |
| 58.16M | 35.31M | 17.69M | 29.04M | 17.57M | Investing Cash Flow |
| -79.03M | -3.13M | -36.21M | -3.50M | -17.16M | Financing Cash Flow |
| 19.05M | 3.62M | 1.04M | 9.17M | 6.44M |
Vericel Technical Analysis
Negative
48.85
Price Trends
56.29
Negative
54.01
Negative
50.28
Negative
Market Momentum
-2.21
Positive
35.40
Neutral
18.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VCEL, the sentiment is Negative. The current price of 48.85 is below the 20-day moving average (MA) of 53.27, below the 50-day MA of 56.29, and below the 200-day MA of 50.28, indicating a bearish trend. The MACD of -2.21 indicates Positive momentum. The RSI at 35.40 is Neutral, neither overbought nor oversold. The STOCH value of 18.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VCEL.
Vericel Risk Analysis
Vericel disclosed 67 risk factors in its most recent earnings report. Vericel reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vericel Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $13.74B | 32.75 | 8.05% | ― | 17.35% | 151.40% | |
69 Neutral | $9.67B | 41.83 | 19.71% | ― | 52.97% | ― | |
68 Neutral | $650.63M | 916.07 | 0.26% | ― | 11.29% | -79.52% | |
67 Neutral | $2.44B | 264.63 | 4.00% | ― | 22.48% | ― | |
67 Neutral | $1.16B | 27.73 | 25.01% | ― | 8.52% | -32.91% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
48 Neutral | $42.16M | ― | -128.15% | ― | -3.49% | -87.49% |
* Healthcare Sector Average
Performance Comparison
VCEL
Vericel
48.85
4.45
10.02%
BMRN
BioMarin Pharmaceutical
72.03
-13.15
-15.44%
APYX
Apyx Medical
1.12
-0.60
-34.88%
SRPT
Sarepta Therapeutics
99.69
-22.31
-18.29%
MDXG
MiMedx Group
7.79
-0.20
-2.50%
ORGO
Organogenesis Holdings
5.13
2.19
74.49%
Vericel Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -7.57% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
Vericel Corporation reported a strong financial year in 2024 with significant revenue and profitability growth, particularly in the MACI and Burn Care franchises. The launch of MACI Arthro showed promising early indicators. However, challenges such as variability in Epicel's quarterly revenue and increased operating expenses were noted. Despite these challenges, the positive aspects significantly outweigh the lowlights.Highlights
Strong Financial Performance in 2024
Vericel Corporation reported total revenue exceeding $237 million, marking a 20% growth, alongside a significant profit growth with adjusted EBITDA increasing to over $50 million and GAAP profitability of $10.4 million.
Record Quarterly Financial Results
The fourth quarter of 2024 saw record quarterly revenue of over $75 million, with a gross margin of 78%, adjusted EBITDA margin of 40%, and net income of nearly $20 million.
MACI Franchise Growth
MACI's revenue increased 21% year-over-year in Q4 and 20% for the full year, driven by strong fundamentals, including the highest number of MACI implants and biopsies since launch.
Burn Care Franchise Expansion
Burn Care revenue increased 22% to approximately $40 million for the full year, with underlying demand for Epicel and NexoBrid showing strong growth trends.
Promising MACI Arthro Launch
MACI Arthro's launch indicators are strong, with 250 trained surgeons and significant biopsy growth from trained surgeons, suggesting high market interest.
Lowlights
Epicel Revenue Variability
Despite an overall strong performance, Epicel's quarterly revenue was below recent run rates due to lower patient treatments and fewer grafts per patient.
Challenges in NexoBrid Revenue Recognition
Although hospital orders for NexoBrid increased by 42% in Q4, revenue recognition was impacted by inventory management discrepancies at the distributor level.
Increased Operating Expenses
Operating expenses rose to $167.6 million in 2024 from $142 million in 2023, driven by MACI Arthro launch activities, increased headcount, and marketing initiatives.
Company Guidance
In the Vericel Corporation Fourth Quarter 2024 Conference Call, the company reported robust financial performance and set guidance for 2025. The company achieved a total revenue of over $237 million, reflecting a 20% growth from the previous year, with both the MACI and Burn Care franchises contributing significantly. The MACI franchise alone generated $197.3 million, showing a 21% year-over-year increase in Q4. Vericel's adjusted EBITDA rose to $53.4 million for the year, with a gross margin of 73% and an adjusted EBITDA margin of 23%. The company maintained a strong cash position, ending the year with $167 million in cash and no debt. For 2025, Vericel anticipates revenue growth of 20% to 23%, gross margins of 73% to 74%, and adjusted EBITDA margins of 25% to 26%. The launch of MACI Arthro and the expanded Burn Care sales force are expected to drive continued growth, with NexoBrid revenue projected to rise to high single-digit millions.Vericel Corporate Events
Business Operations and StrategyFinancial Disclosures
Vericel Projects Strong Growth and Profitability Ahead
Positive
Jan 14, 2025
Vericel Corporation announced its preliminary unaudited financial results for 2024 and provided financial guidance for 2025, revealing a 20% revenue growth for the year, with MACI and burn care products showing significant increases. The company reported a strong gross margin and profitability, highlighting a record number of MACI implants and surgeon engagements. Looking ahead, Vericel anticipates continued growth in revenue and profitability, aiming for higher gross and adjusted EBITDA margins by 2029, further solidifying its position in the advanced therapy market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.