VERICEL CORP (VCEL) Stock Fundamental Analysis
NASDAQ:VCEL - Nasdaq - US92346J1088 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to VCEL. VCEL was compared to 562 industry peers in the Biotechnology industry. While VCEL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VCEL is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make VCEL a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year VCEL was profitable.
In the past year VCEL had a positive cash flow from operations.
In multiple years VCEL reported negative net income over the last 5 years.
VCEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 2.39%, VCEL belongs to the best of the industry, outperforming 92.17% of the companies in the same industry.
VCEL's Return On Equity of 3.55% is amongst the best of the industry. VCEL outperforms 93.06% of its industry peers.
VCEL's Return On Invested Capital of 0.93% is amongst the best of the industry. VCEL outperforms 92.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 3.55% | ||
| ROIC | 0.93% |
ROA(3y)-1.54%
ROA(5y)-1.26%
ROE(3y)-2.18%
ROE(5y)-1.76%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of VCEL (4.37%) is better than 92.17% of its industry peers.
With an excellent Operating Margin value of 1.90%, VCEL belongs to the best of the industry, outperforming 92.35% of the companies in the same industry.
VCEL's Gross Margin of 72.55% is amongst the best of the industry. VCEL outperforms 82.38% of its industry peers.
In the last couple of years the Gross Margin of VCEL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.9% | ||
| PM (TTM) | 4.37% | ||
| GM | 72.55% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.25%
GM growth 5Y1.27%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VCEL is destroying value.
VCEL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VCEL has more shares outstanding
Compared to 1 year ago, VCEL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.63 indicates that VCEL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.63, VCEL belongs to the top of the industry, outperforming 86.12% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that VCEL is not too dependend on debt financing.
VCEL has a Debt to Equity ratio of 0.00. This is comparable to the rest of the industry: VCEL outperforms 46.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.63 |
ROIC/WACC0.09
WACC10.01%
2.3 Liquidity
VCEL has a Current Ratio of 4.23. This indicates that VCEL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VCEL (4.23) is comparable to the rest of the industry.
VCEL has a Quick Ratio of 3.89. This indicates that VCEL is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of VCEL (3.89) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.23 | ||
| Quick Ratio | 3.89 |
3. Growth
3.1 Past
VCEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 400.00%, which is quite impressive.
Measured over the past 5 years, VCEL shows a small growth in Earnings Per Share. The EPS has been growing by 3.71% on average per year.
VCEL shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.10%.
The Revenue has been growing by 15.01% on average over the past years. This is quite good.
EPS 1Y (TTM)400%
EPS 3YN/A
EPS 5Y3.71%
EPS Q2Q%-187.5%
Revenue 1Y (TTM)20.1%
Revenue growth 3Y14.95%
Revenue growth 5Y15.01%
Sales Q2Q%2.57%
3.2 Future
The Earnings Per Share is expected to grow by 72.04% on average over the next years. This is a very strong growth
VCEL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.77% yearly.
EPS Next Y87%
EPS Next 2Y105.64%
EPS Next 3Y93.27%
EPS Next 5Y72.04%
Revenue Next Year20.06%
Revenue Next 2Y22.27%
Revenue Next 3Y23%
Revenue Next 5Y24.78%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
VCEL is valuated quite expensively with a Price/Earnings ratio of 1416.00.
VCEL's Price/Earnings ratio is rather cheap when compared to the industry. VCEL is cheaper than 90.57% of the companies in the same industry.
VCEL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.25.
Based on the Price/Forward Earnings ratio of 55.81, the valuation of VCEL can be described as expensive.
VCEL's Price/Forward Earnings ratio is rather cheap when compared to the industry. VCEL is cheaper than 89.15% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, VCEL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1416 | ||
| Fwd PE | 55.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VCEL is valued cheaply inside the industry as 91.46% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 191.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VCEL has a very decent profitability rating, which may justify a higher PE ratio.
VCEL's earnings are expected to grow with 93.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.28
PEG (5Y)381.29
EPS Next 2Y105.64%
EPS Next 3Y93.27%
5. Dividend
5.1 Amount
No dividends for VCEL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
42.48
+0.99 (+2.39%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners107.75%
Inst Owner Change0.43%
Ins Owners0.97%
Ins Owner Change10.63%
Market Cap2.13B
Analysts87.14
Price Target64.52 (51.88%)
Short Float %9.32%
Short Ratio8.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)37.49%
Min EPS beat(2)15.34%
Max EPS beat(2)59.63%
EPS beat(4)3
Avg EPS beat(4)21.88%
Min EPS beat(4)-16.02%
Max EPS beat(4)59.63%
EPS beat(8)6
Avg EPS beat(8)24.94%
EPS beat(12)7
Avg EPS beat(12)26.57%
EPS beat(16)8
Avg EPS beat(16)-4.59%
Revenue beat(2)1
Avg Revenue beat(2)-0.28%
Min Revenue beat(2)-3.41%
Max Revenue beat(2)2.84%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-3.41%
Max Revenue beat(4)2.84%
Revenue beat(8)4
Avg Revenue beat(8)1.36%
Revenue beat(12)5
Avg Revenue beat(12)0.08%
Revenue beat(16)7
Avg Revenue beat(16)-0.22%
PT rev (1m)-3.25%
PT rev (3m)-1.56%
EPS NQ rev (1m)6.48%
EPS NQ rev (3m)-614.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-24.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.04%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1416 | ||
| Fwd PE | 55.81 | ||
| P/S | 8.98 | ||
| P/FCF | N/A | ||
| P/OCF | 36.62 | ||
| P/B | 7.3 | ||
| P/tB | 7.45 | ||
| EV/EBITDA | 191.87 |
EPS(TTM)0.03
EY0.07%
EPS(NY)0.76
Fwd EY1.79%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)1.16
OCFY2.73%
SpS4.73
BVpS5.82
TBVpS5.7
PEG (NY)16.28
PEG (5Y)381.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 3.55% | ||
| ROCE | 1.18% | ||
| ROIC | 0.93% | ||
| ROICexc | 1.34% | ||
| ROICexgc | 1.37% | ||
| OM | 1.9% | ||
| PM (TTM) | 4.37% | ||
| GM | 72.55% | ||
| FCFM | N/A |
ROA(3y)-1.54%
ROA(5y)-1.26%
ROE(3y)-2.18%
ROE(5y)-1.76%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.25%
GM growth 5Y1.27%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 1162.32% | ||
| Cap/Sales | 26.97% | ||
| Interest Coverage | 11.33 | ||
| Cash Conversion | 580.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.23 | ||
| Quick Ratio | 3.89 | ||
| Altman-Z | 8.63 |
F-Score5
WACC10.01%
ROIC/WACC0.09
Cap/Depr(3y)649.08%
Cap/Depr(5y)464.88%
Cap/Sales(3y)15.17%
Cap/Sales(5y)10.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)400%
EPS 3YN/A
EPS 5Y3.71%
EPS Q2Q%-187.5%
EPS Next Y87%
EPS Next 2Y105.64%
EPS Next 3Y93.27%
EPS Next 5Y72.04%
Revenue 1Y (TTM)20.1%
Revenue growth 3Y14.95%
Revenue growth 5Y15.01%
Sales Q2Q%2.57%
Revenue Next Year20.06%
Revenue Next 2Y22.27%
Revenue Next 3Y23%
Revenue Next 5Y24.78%
EBIT growth 1Y169.86%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year2112.25%
EBIT Next 3Y253.89%
EBIT Next 5Y172.81%
FCF growth 1Y-174.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y64.72%
OCF growth 3Y26.05%
OCF growth 5YN/A