Vericel (VCEL) AI Stock Analysis

• Market Cap: $1.93B
• Dividend Yield: N/A
• Average Volume (3M): 504.99K
• Price to Earnings (P/E): 208.3
• Beta (1Y): 1.11
• Revenue Growth: 20.10%
• EPS Growth: N/A
• Country: US
• Employees: 357
• Sector: Healthcare
• Sector Strength: 60
• Industry: Biotechnology
• EPS (TTM): 0.38
• Shares Outstanding: 50,135,864
• 10 Day Avg. Volume: 461,198
• 30 Day Avg. Volume: 504,987
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 16.50
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $61.67
• Price Target Upside: 60.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Vericel's overall stock score reflects strong financial performance and positive earnings call guidance, indicating robust growth prospects. However, technical analysis suggests caution due to bearish indicators, and the high P/E ratio raises valuation concerns. The company's strong revenue growth and strategic expansions present opportunities, but investors should be mindful of potential risks associated with its current valuation and technical trends.

Positive Factors

Financial Performance

VCEL posted a strong quarter, meeting its preliminary revenue results and beating its FY25 margin guidance.

Geographic Expansion

Management reiterated its intention to expand MACI commercialization in geographies outside the U.S.

MACI Adoption

Strong interest from the physician community for MACI Arthro, with over 250 surgeons having undergone training to date.

Negative Factors

Burn Care Performance

The Burn Care franchise has disappointed expectations.

Burn Care Revenue

VCEL missed Burn Care revenue expectations as patient health led to fewer treatments and grafts per patient despite sequential growth in biopsies.

Epicel Revenue

The decline in 4Q24 Epicel related revenues was attributed to a lower number of patient treatments due to patient health issues as well as fewer grafts per patient.

Vericel Business Overview & Revenue Model

Company Description

Vericel Corporation, a commercial-stage biopharmaceutical company, engages in the research, development, manufacture, and distribution of cellular therapies for sports medicine and severe burn care markets in the United States. The company markets autologous cell therapy products comprising MACI, an autologous cellularized scaffold product for the repair of symptomatic, and single or multiple full-thickness cartilage defects of the knee; and Epicel, a permanent skin replacement humanitarian use device for the treatment of adult and pediatric patients with deep-dermal or full-thickness burns. Its preapproval stage product is NexoBrid, a registration-stage biological orphan product for eschar removal in adults with deep partial-thickness and/or full-thickness thermal burns. The company was formerly known as Aastrom Biosciences, Inc. Vericel Corporation was incorporated in 1989 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Vericel 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 is showing promising financial health with strong revenue and cash flow growth, supported by effective cost management and a manageable debt profile. The company's profitability is improving, although there is room to enhance net margins. With a solid balance sheet and strong cash generation, Vericel is well-positioned for continued growth in the biotechnology sector.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 38.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 38.45 is below the 20-day moving average (MA) of 40.16, below the 50-day MA of 44.36, and below the 200-day MA of 49.53, indicating a bearish trend. The MACD of -1.75 indicates Negative momentum. The RSI at 39.02 is Neutral, neither overbought nor oversold. The STOCH value of 34.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VCEL.

Vericel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	80 Outperform	$1.84B	12.22	24.71%	―	20.62%	14.08%
VCEL	70 Outperform	$1.93B	208.29	4.00%	―	20.10%	―
LGND	67 Neutral	$1.99B	48.01	-0.53%	―	27.28%	-101.63%
VCYT	66 Neutral	$2.39B	99.71	2.17%	―	23.46%	―
ARQT	57 Neutral	$1.71B	―	-70.58%	―	229.74%	70.23%
TARS	54 Neutral	$1.95B	―	-33.98%	―	449.03%	42.86%
Sector *	52 Neutral	$5.24B	3.76	-41.88%	2.85%	17.01%	0.78%

Vericel Corporate Events

Vericel Shareholders Approve Key Proposals at Annual Meeting

At its recent Annual Meeting, Vericel‘s shareholders voted on several key proposals, including the election of directors, approval of executive compensation, ratification of PricewaterhouseCoopers LLP as the independent accounting firm, and adoption of the company’s amended plans. These decisions reflect shareholder support for the company’s current leadership and strategic direction, potentially strengthening Vericel’s position in its industry.

Spark’s Take on VCEL Stock

According to Spark, TipRanks’ AI Analyst, VCEL is a Neutral.

Vericel’s overall stock score reflects its strong financial performance and positive earnings call guidance, indicating robust growth prospects. However, the technical analysis suggests caution due to bearish indicators, and the high P/E ratio raises valuation concerns. While the company’s strong revenue growth and strategic expansions present opportunities, investors should be mindful of the potential risks associated with its current valuation and technical trends.

To see Spark’s full report on VCEL stock, click here.

Vericel Sees Minimal Impact from U.S. Tariffs

Vericel Corporation anticipates minimal impact from the recent U.S. government tariffs on foreign goods, as its operations and revenue are entirely U.S.-based. The company expects that current and future tariffs will have an insignificant effect on its cost of goods sold and gross margin due to its reliance on domestic suppliers and significant safety stock of materials.

Spark’s Take on VCEL Stock

According to Spark, TipRanks’ AI Analyst, VCEL is a Neutral.

Vericel Corporation’s stock score reflects strong financial performance and positive earnings call sentiment, indicating a solid growth trajectory. However, technical analysis shows bearish signals, and the valuation appears stretched with a high P/E ratio. While the company demonstrates a robust operational outlook, potential investors should be cautious about the current stock price level and market trends.

To see Spark’s full report on VCEL stock, click here.