One-glance verdict
Overvalued
$-0.55 our estimate vs market $25.27
Wall Street consensus: $42.15 (-7,825.2% lower than our fair-value estimate)
4731% below our estimate, beyond the bull case
Fundamentals snapshot
Artivion, Inc.
AORT · NYQ · Healthcare · Medical Devices
Current price
$25.27
52-week range
$19.16 - $48.25
Market cap
$1.23B
Balance sheet
Stretched
1.01x Concerning
Net debt $330.65M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 6.8% last year.
- Reward Free cash flow was positive in 8/10 years.
- Risk Return on equity was -0.7% last year — the company lost money on shareholders' equity.
What this company does
Artivion, Inc.
Artivion makes and sells highly specialized medical devices and tissues that surgeons use to perform complex heart and blood vessel surgeries. The company earns its money by selling these critical products, like artificial heart valves and grafts for repairing major arteries, directly to hospitals for life-saving procedures. This means its business depends on earning the trust of doctors who rely on these products for their most critical operations.
How the company got here
Artivion started in 1984 as CryoLife, a company that pioneered methods for freezing and preserving human tissues, like heart valves, for use in surgeries. For many years, this was its main business. Over time, CryoLife expanded by acquiring companies that made medical devices, such as On-X, which makes mechanical heart valves, and JOTEC, a German company specializing in devices for aortic repair. These acquisitions shifted the company's focus more towards medical devices, and in 2022, it changed its name to Artivion to reflect this new direction.
What it actually does
Artivion makes and sells specialized medical products used by surgeons who operate on the heart and major blood vessels, particularly the aorta (the body's main artery). Think of them as providing critical tools and replacement parts for some of the most complex plumbing jobs in the human body. Their products range from preserved human tissues and mechanical heart valves to surgical glues and fabric-covered tubes called stent grafts that reinforce or bypass damaged arteries. Hospitals and surgical centers buy these products for use in life-saving procedures.
Medical Devices
This is Artivion's largest business segment, which includes a variety of manufactured products. A major part of this segment is aortic stent grafts, which are tube-like devices used to repair a weakened or bulging aorta. It also includes the On-X mechanical heart valves, which are durable, artificial valves used to replace a patient's diseased heart valve. Another key product is BioGlue, a surgical sealant used to control bleeding during operations. This segment is the primary driver of the company's growth.
Preservation Services
This is the company's original business, where it makes money by preserving human tissues for medical use. When a donated human heart valve or blood vessel is prepared for transplant, Artivion uses its special freezing technology to preserve it. Surgeons then use these preserved tissues, called allografts, to reconstruct parts of the heart or blood vessels, especially in complex cases. While this is a smaller part of the company than medical devices, it remains a steady and important business line.
What management is betting on now
Artivion's main focus is to become the go-to company for surgeons who treat complex diseases of the aorta. They are concentrating on developing and selling a complete set of tools for aortic repair, from open surgery to less invasive options. A key part of this strategy is the U.S. launch of innovative products like the NEXUS Aortic Arch System, a device designed to make complex aortic repairs simpler and safer. By investing in new products and getting them approved for sale in more countries, management aims to achieve sustained double-digit revenue growth (an increase in sales of over 10% per year).
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$7.82M
FY2024 Q4
$8.71M
FY2025 Q1
$-20.59M
FY2025 Q2
$11.72M
FY2025 Q3
$17.65M
FY2025 Q4
$-7.95M
FY2026 Q1
$-6.85M
FY2026 Q2
$-12.01M
Revenue
$125.76M
Net income
$-13.51M
Diluted EPS
-0.28
Operating cash flow
$-1.27M
Free cash flow
$-12.01M
Fetching…
Sources
Revenue
$116.34M
Net income
$1.42M
Diluted EPS
0.03
Operating cash flow
$1.15M
Free cash flow
$-6.85M
Fetching…
Sources
Revenue
$115.99M
Net income
$2.43M
Diluted EPS
0.06
Operating cash flow
$19.56M
Free cash flow
$-7.95M
Fetching…
Sources
Revenue
$113.39M
Net income
$6.50M
Diluted EPS
0.13
Operating cash flow
$22.26M
Free cash flow
$17.65M
Fetching…
Sources
Revenue
$112.97M
Net income
$1.34M
Diluted EPS
0.03
Operating cash flow
$15.01M
Free cash flow
$11.72M
Fetching…
Sources
Revenue
$98.98M
Net income
$-505.00K
Diluted EPS
-0.01
Operating cash flow
$-16.95M
Free cash flow
$-20.59M
Fetching…
Sources
Revenue
$97.31M
Net income
$-16.48M
Diluted EPS
-0.40
Operating cash flow
$10.14M
Free cash flow
$8.71M
Fetching…
Sources
Revenue
$95.78M
Net income
$-2.29M
Diluted EPS
-0.05
Operating cash flow
$11.46M
Free cash flow
$7.82M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-0.55 vs current price $25.27
Wall Street consensus is the average analyst price target: $42.15 (-7,825.2% lower than our fair-value estimate).
Our most-likely fair value is $-0.55 a share — about 102.2% below today's price of $25.27, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $330.7M. Interest coverage 1.0x.
Net debt
$330.65M
Interest coverage
1.01x
Artivion, Inc. is healthier than 0 of 1 peers on balance-sheet leverage.
Stretched
Worse cushion
Baseline
Better cushion
AORT
BASELINE
Artivion, Inc.
Total debt $407.97M Interest coverage 1.01x This is the baseline the peer rows are being compared against.
What you should know
The case for and against AORT
2 Rewards
1 Risk
Rewards
-
Revenue grew 6.8% last year.
-
Free cash flow was positive in 8/10 years.
Risks
-
Return on equity was -0.7% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
33.77x
P/B
2.76x
P/S
2.61x
EV/EBITDA
24.30x
PEG ratio
643.75x
Profitability
How much profit each dollar creates
Gross margin
64.4%
Operating margin
9.0%
Net margin
-0.7%
ROE
-0.7%
ROA
2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.92x
Current ratio
3.47x
Quick ratio
1.76x
Total debt
$407.97M
Total cash
$77.32M
Growth
How the business has been compounding
Revenue TTM
$471.47M
Revenue 5Y CAGR
10.2%
EPS TTM
-0.06
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$41.71M
Free CF TTM
$839.00K
FCF margin
0.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2015-12-09