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CVRX

CVRx NasdaqGS:CVRX Stock Report

Last Price

US$9.14

Market Cap

US$188.1m

7D

3.5%

1Y

-57.9%

Updated

06 Aug, 2022

Data

Company Financials +
CVRX fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health6/6
Dividends0/6

CVRX Stock Overview

CVRx, Inc., a commercial-stage medical device company, focuses on developing, manufacturing, and commercializing neuromodulation solutions for patients with cardiovascular diseases.

CVRx Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CVRx
Historical stock prices
Current Share PriceUS$9.14
52 Week HighUS$22.51
52 Week LowUS$4.60
Beta0
1 Month Change35.01%
3 Month Change66.79%
1 Year Change-57.94%
3 Year Changen/a
5 Year Changen/a
Change since IPO-67.36%

Recent News & Updates

Aug 05

CVRx Pursues Revenue Growth But Operating Losses Worsen

CVRx went public in June 2021, raising approximately $126 million in an IPO. The company is commercializing its neuromodulation cardiovascular medical device and related products. CVRx is growing revenue from a tiny base but is generating high operating losses and faces a variety of risks. I'm on Hold for CVRx in the near term. A Quick Take On CVRx CVRx (CVRX) went public in June 2021, raising approximately $126 million in gross proceeds from an upsized IPO that was priced at $18.00 per share. The firm is commercializing a device that improves cardiovascular function in patients with heart failure. CVRX has a promising product portfolio and is continuing its expansion plans but faces risks and higher operating losses amid an increasing cost of capital environment. I'm on Hold for CVRX in the near term. CVRx Overview Minneapolis, Minnesota-based CVRx was founded to develop its BAROSTIM device that sends persistent electrical pulses to baroreceptors inside the wall of the carotid artery as a signal to the brain to modulate cardiovascular function. Management is headed by President and CEO, Nadim Yared, who has been with the firm since 2006 and was previously Vice President and General Manager of Medtronic Navigation. The firm sells its BAROSTIM NEO to hospitals through its direct sales organizations in the U.S. and Germany and through distributors in other European countries. CVRx's Market & Competition CVRx's market is focused on the cardiovascular system's use of neuromodulation functions. The global congestive heart failure device market size was an estimated $15.6 billion in 2015 and is projected to grow to $31.4 billion by 2024, according to a report by Grand View Research. This growth would represent a CAGR of 8.1% from 2016 to 2024. The historical and projected future growth trajectory of the global market for heart failure treatment devices is shown below: Global Heart Failure Devices Market (Grand View Research) There are a variety of industry market participants depending on product type: Medtronic Boston Scientific Biotronik SE & Co. KG St. Jude Medical Abbott Laboratories LivaNova Impulse Dynamics CVRx's Recent Financial Performance Total revenue by quarter has grown from a small base: 5 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has also risen as revenue has increased: 5 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have remained high as the firm has ramped up its sales efforts: 5 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating losses by quarter have increased markedly in recent reporting periods: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have also become increasingly negative in recent quarters: 5 Quarter Earnings Per Share (Seeking Alpha) (All data in above charts is GAAP) In the past 12 months, CVRX's stock price has fallen 56% vs. the U.S. S&P 500 Index's drop of around 6.9%, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation And Other Metrics For CVRx Below is a table of relevant capitalization and valuation figures for the company: Measure Amount Enterprise Value $71,920,000 Market Capitalization $192,800,000 Enterprise Value/Sales ((TTM)) 4.45 Revenue Growth Rate ((TTM)) 78.21% Operating Cash Flow ((TTM)) -$36,970,000 Earnings Per Share (Fully Diluted) -$1.85 (Source - Seeking Alpha) Commentary On CVRx In its last earnings call (Source - Seeking Alpha), covering Q2 2022's results, management highlighted topline revenue growth as being due to adding new implanting centers as customers as well as existing locations increasing their usage. Management is focused on expanding its commercial network, continuing to develop its portfolio, and growing the clinical body of evidence to support the use of its system. The firm intends to continue investing in its commercialization activities in the U.S. and Europe. As to its financial results, total revenue reached $5.0 million, representing 61% growth year-over-year.

Shareholder Returns

CVRXUS Medical EquipmentUS Market
7D3.5%2.4%1.0%
1Y-57.9%-21.6%-12.9%

Return vs Industry: CVRX underperformed the US Medical Equipment industry which returned -21.6% over the past year.

Return vs Market: CVRX underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is CVRX's price volatile compared to industry and market?
CVRX volatility
CVRX Average Weekly Movement11.7%
Medical Equipment Industry Average Movement9.8%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: CVRX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: CVRX's weekly volatility (12%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2000109Nadim Yaredhttps://www.cvrx.com

CVRx, Inc., a commercial-stage medical device company, focuses on developing, manufacturing, and commercializing neuromodulation solutions for patients with cardiovascular diseases. It offers Barostim, a neuromodulation device indicated to improve symptoms for patients with heart failure (HF) with reduced ejection fraction or systolic HF. The company sells its products through direct sales force, as well as sales agents and independent distributors in the United States, Germany, rest of Europe, and internationally.

CVRx Fundamentals Summary

How do CVRx's earnings and revenue compare to its market cap?
CVRX fundamental statistics
Market CapUS$188.07m
Earnings (TTM)-US$37.76m
Revenue (TTM)US$16.16m

11.6x

P/S Ratio

-5.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CVRX income statement (TTM)
RevenueUS$16.16m
Cost of RevenueUS$4.01m
Gross ProfitUS$12.15m
Other ExpensesUS$49.92m
Earnings-US$37.76m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.84
Gross Margin75.19%
Net Profit Margin-233.69%
Debt/Equity Ratio0%

How did CVRX perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CVRX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CVRX?

Other financial metrics that can be useful for relative valuation.

CVRX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.2x
Enterprise Value/EBITDA-1.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does CVRX's PS Ratio compare to its peers?

CVRX PS Ratio vs Peers
The above table shows the PS ratio for CVRX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average6.8x
STXS Stereotaxis
5.7x27.9%US$191.1m
TCMD Tactile Systems Technology
0.8x13.7%US$179.4m
BGLC BioNexus Gene Lab
15.3xn/aUS$198.0m
ARAY Accuray
0.5x5.2%US$201.4m
CVRX CVRx
11.6x41.8%US$188.1m

Price-To-Sales vs Peers: CVRX is expensive based on its Price-To-Sales Ratio (11.6x) compared to the peer average (6.8x).


Price to Earnings Ratio vs Industry

How does CVRX's PE Ratio compare vs other companies in the US Medical Equipment Industry?

Price-To-Sales vs Industry: CVRX is expensive based on its Price-To-Sales Ratio (11.6x) compared to the US Medical Equipment industry average (4.1x)


Price to Sales Ratio vs Fair Ratio

What is CVRX's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CVRX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio11.6x
Fair PS Ratio14.1x

Price-To-Sales vs Fair Ratio: CVRX is good value based on its Price-To-Sales Ratio (11.6x) compared to the estimated Fair Price-To-Sales Ratio (14.1x).


Share Price vs Fair Value

What is the Fair Price of CVRX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate CVRX's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate CVRX's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is CVRx forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-1.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVRX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CVRX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CVRX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CVRX's revenue (41.8% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: CVRX's revenue (41.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CVRX is forecast to be unprofitable in 3 years.


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Past Performance

How has CVRx performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-13.7%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: CVRX is currently unprofitable.

Growing Profit Margin: CVRX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if CVRX's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare CVRX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CVRX is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (2%).


Return on Equity

High ROE: CVRX has a negative Return on Equity (-29.7%), as it is currently unprofitable.


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Financial Health

How is CVRx's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CVRX's short term assets ($131.9M) exceed its short term liabilities ($5.9M).

Long Term Liabilities: CVRX's short term assets ($131.9M) exceed its long term liabilities ($982.0K).


Debt to Equity History and Analysis

Debt Level: CVRX is debt free.

Reducing Debt: CVRX had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CVRX has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: CVRX has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 43.6% each year


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Dividend

What is CVRx current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CVRX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CVRX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CVRX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CVRX's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CVRX has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

Nadim Yared (54 yo)

15.83yrs

Tenure

US$1,669,807

Compensation

Mr. Nadim Yared is Advisor of Vensana Capital Management, LLC from January 2022. He has been the President, Chief Executive Officer and Director at CVRx, Inc. since October 2006. He serves as Chairman of t...


CEO Compensation Analysis

Compensation vs Market: Nadim's total compensation ($USD1.67M) is about average for companies of similar size in the US market ($USD1.67M).

Compensation vs Earnings: Nadim's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: CVRX's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: CVRX's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CVRx, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: CVRx, Inc.
  • Ticker: CVRX
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Implied Market Cap: US$188.066m
  • Shares outstanding: 20.58m
  • Website: https://www.cvrx.com

Number of Employees


Location

  • CVRx, Inc.
  • 9201 West Broadway Avenue
  • Suite 650
  • Minneapolis
  • Minnesota
  • 55445
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.