Quality Investor

AtriCure, Inc.

Rank #54Hypergrowth

ATRC · Nasdaq · Healthcare

AtriCure, Inc. (ATRC) — Rank #54 by gross profitability (GP/assets 0.59) · ROE -2.2% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · CIK 0001323885 · all metrics point-in-time as of the filing date.

About

AtriCure, Inc. engages in the development, manufacture, and sale of devices for surgical ablation of cardiac tissue, exclusion of the left atrial appendage, and temporarily blocking pain by ablating peripheral nerves to medical centers in the United States, the Asia-Pacific, and internationally.

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It offers Isolator Synergy Ablation System clamps, a single-use disposable radio frequency products; multifunctional pens and linear ablation devices, a single-use disposable RF products for the treatment of cardiac arrhythmias; cryoICE Cryoablation System that enables the user to make linear ablations of varied lengths; and EPi-Sense Systems, a single-use disposable device used for the treatment of symptomatic, drug-refractory, and long-standing persistent atrial fibrillation. It also provides cryoSPHERE probe, which provides temporary pain relief by applying cryothermic energy to targeted intercoastal peripheral nerves in the ribcage; AtriClip System, an implantable device coupled to a single-use disposable applier; cryoXT probes, a cryoablation device designed specifically for Cryo Nerve Block therapy; LARIAT System, a solution for soft-tissue closure; Lumitip dissectors to separate tissues to provide access to key anatomical structures that are targeted for ablation; Glidepath guides for placement of clamps; and Subtle Cannula's to support access for EPi-Sense catheters. In addition, the company sells various reusable cardiac surgery instruments. It markets and sells its products through independent distributors and direct sales personnel.

The company was incorporated in 2000 and is headquartered in Mason, Ohio.

Industry
Medical Instruments & Supplies
Sector
Healthcare
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

ATRC-28.6% · -6.5% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$2.86B

P/E (annual)

P/S (annual)

5.3

P/B

5.5

P/OCF (annual)

49.9

Shareholder Yield

-38.1%

Employees

1,350

Industry

Medical Instruments & Supplies

Exchange

Nasdaq

Signal Flags

2 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 1-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.59
Return on equity
-2.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.31
Current ratio
4.22×
Net cash
$106.79M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
8.4%

Growth

1/2 pass
Revenue growth
205.9%
Piotroski F-Score
6 / 9
Share dilution
38.1%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

2 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

21.7%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 38.1% — per-share value needs a total required return of 59.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 18.1%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

16.6%

r = 10% (base)

21.7%

r = 12%

26.1%

Net debt / market cap: -4.0%

Base FCF: $48.3M3Y mean FCF: -$16.2M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

5.9xExpensive
2.0xmed 3.8x5.9x

P / B

Price / book value per share

4.8xFair
2.9xmed 4.8x11.3x

P / GP

Price / gross profit per share

8.1xExpensive
2.8xmed 5.3x8.1x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.59

Primary signal (Novy-Marx).

5th of 17 SIC 3841 peers

Return on equity

-2.2%

Gross margin

75.0%

2nd of 17 SIC 3841 peers

Revenue growth (YoY)

205.9%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2015201620172018
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.31

4th of 16 SIC 3841 peers (best = lowest)

Current ratio

4.22×

4th of 17 SIC 3841 peers

Quick ratio

3.02×

Net cash

$106.79M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$48.28M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

5.22

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

8.4%

Stock-based comp intensity.

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20132018
Startup
Hypergrowth