AtriCure Inc. Common Stock (ATRC)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first for a durable business earning decent returns on capital. AtriCure designs specialized devices for surgical ablation and left atrial appendage exclusion. That niche has regulatory and physician-training barriers, but the financial returns do not yet confirm a wide moat: FairStock shows ROE of 2.15% and ROCE of 1.25%. Revenue is moving in the right direction. In fiscal year 2025, revenue was $534.5M versus $465.3M in fiscal year 2024, and $399.2M in fiscal year 2023. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $153.6M and net income was $9.0M, or diluted EPS of $0.18. Yet fiscal year 2025 still had net income of -$11.4M and diluted EPS of -$0.24; fiscal year 2024 had net income of -$44.7M and diluted EPS of -$0.95; fiscal year 2023 had net income of -$30.4M and diluted EPS of -$0.66. So profitability is recent and lumpy: Q1 2026 net income was only $108,000. The balance sheet looks sound, with D/E of 0.14 and an Altman Z-Score of 10.74, and trailing free cash flow is $52.1M. But at the 2026-10-13 close of $56.87, FairStock's P/E is 270.81, P/B is 5.60, EV/EBITDA is 72.47, and FCF yield is 1.8%. The Graham Number is $6.93, leaving a margin of safety of -720.63%. That is not a Graham bargain. I would want proof that the recent profit can scale before paying such a premium.

In plain English: AtriCure makes medical devices used in heart surgery to treat irregular heartbeats and related problems. The business is growing sales and just made a small quarterly profit, but it has lost money in recent full years. At the recent close, the stock looks expensive compared with its current profits and book value, so the price is high relative to today's numbers.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer