NasdaqCM:VCEL

Stock Analysis Report

Executive Summary

Vericel Corporation, a commercial-stage biopharmaceutical company, researches, develops, manufactures, and distributes cellular therapies for sports medicine and severe burn care markets.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Vericel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VCEL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.5%

VCEL

2.5%

US Biotechs

0.9%

US Market


1 Year Return

11.3%

VCEL

10.8%

US Biotechs

16.8%

US Market

Return vs Industry: VCEL exceeded the US Biotechs industry which returned 10.8% over the past year.

Return vs Market: VCEL underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

VCELIndustryMarket
7 Day-3.5%2.5%0.9%
30 Day19.9%11.8%4.5%
90 Day6.6%7.6%6.2%
1 Year11.3%11.3%11.8%10.8%19.4%16.8%
3 Year688.5%688.5%18.6%14.8%47.5%38.0%
5 Year567.7%567.7%5.8%0.8%62.0%44.1%

Price Volatility Vs. Market

How volatile is Vericel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vericel undervalued compared to its fair value and its price relative to the market?

36.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VCEL ($18.53) is trading below our estimate of fair value ($29.21)

Significantly Below Fair Value: VCEL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VCEL is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: VCEL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VCEL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VCEL is overvalued based on its PB Ratio (8.5x) compared to the US Biotechs industry average (2.9x).


Next Steps

Future Growth

How is Vericel forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

62.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VCEL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: VCEL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VCEL's is expected to become profitable in the next 3 years.

Revenue vs Market: VCEL's revenue (24.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: VCEL's revenue (24.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VCEL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Vericel performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VCEL has high quality earnings.

Growing Profit Margin: VCEL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VCEL is unprofitable, but has reduced losses over the past 5 years at a rate of 14.6% per year.

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

Earnings vs Industry: VCEL is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (86.5%).


Return on Equity

High ROE: VCEL has a negative Return on Equity (-14.36%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vericel's financial position?


Financial Position Analysis

Short Term Liabilities: VCEL's short term assets ($104.7M) exceeds its short term liabilities ($15.1M)

Long Term Liabilities: VCEL's short term assets ($104.7M) exceeds its long term liabilities (25.4M)


Debt to Equity History and Analysis

Debt Level: VCEL is debt free.

Reducing Debt: VCEL has no debt compared to 5 years ago when its debt to equity ratio was 0.4%.


Balance Sheet

Inventory Level: VCEL has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if VCEL's debt is covered by short term assets.


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: VCEL has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if VCEL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Vericel's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VCEL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Vericel's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Nick Colangelo (55yo)

6.7yrs

Tenure

US$2,614,294

Compensation

Mr. Dominick C. Colangelo, also known as Nick, Esq., has been the Chief Executive Officer and President at Vericel Corporation. since March 1, 2013 and served as its Treasurer since May 7, 2014. Mr. Colang ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD2.61M) is about average for companies of similar size in the US market ($USD2.63M).

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


Management Age and Tenure

1.3yrs

Average Tenure

56.5yo

Average Age

Experienced Management: VCEL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

6.7yrs

Average Tenure

61yo

Average Age

Experienced Board: VCEL's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15%.


Management Team

  • Gerard Michel (56yo)

    CFO & VP of Corporate Development

    • Tenure: 5.4yrs
    • Compensation: US$1.11m
  • Nick Colangelo (55yo)

    CEO, President & Director

    • Tenure: 6.7yrs
    • Compensation: US$2.61m
  • Heidi Hassen

    Vice President of Human Resources

    • Tenure: 0yrs
  • Jon Hopper (57yo)

    Chief Medical Officer

    • Tenure: 1.3yrs
  • Mike Halpin (58yo)

    Chief Operating Officer

    • Tenure: 0.4yrs
  • Sean Flynn

    VP & General Counsel

    • Tenure: 0yrs
  • Roland DeAngelis

    Senior Vice President of Commercial Operations

    • Tenure: 0.2yrs

Board Members

  • Kevin McLaughlin (63yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$222.64k
  • Paul Wotton (59yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$207.64k
  • Robert Zerbe (68yo)

    Chairman & Lead Director

    • Tenure: 7.1yrs
    • Compensation: US$242.64k
  • Nick Colangelo (55yo)

    CEO, President & Director

    • Tenure: 6.7yrs
    • Compensation: US$2.61m
  • Alan Rubino (64yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$227.14k
  • Steve Gilman (66yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$209.64k
  • Joyce Frey-Vasconcells

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Mahendra Rao (58yo)

    Member of Scientific Advisory Board

    • Tenure: 9.6yrs
  • Karen Hirschi

    Member of Scientific Advisory Board

    • Tenure: 9.6yrs
  • Heidi Hagen (50yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$219.64k

Company Information

Vericel Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vericel Corporation
  • Ticker: VCEL
  • Exchange: NasdaqCM
  • Founded: 1989
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$823.720m
  • Shares outstanding: 44.69m
  • Website: https://vcel.com

Number of Employees


Location

  • Vericel Corporation
  • 64 Sidney Street
  • Cambridge
  • Massachusetts
  • 2139
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VCELNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDFeb 1997
ATQPDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1997

Biography

Vericel Corporation, a commercial-stage biopharmaceutical company, researches, develops, manufactures, and distributes cellular therapies for sports medicine and severe burn care markets. It markets autolo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 23:30
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.