Vericel Corporation Common Stock (VCEL)

FairStock Score: 37/100 — MIXED

Key Financials

Strengths

• Generates $16 million in annual free cash flow (0.9% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.27, providing financial flexibility
• Altman Z-Score of 7.4 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 23.3% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($7) with negative 372% margin of safety—limited downside protection

AI Analysis

Vericel Corporation Common Stock is a micro-cap healthcare company valued at $1.7 billion. The business generates $276 million in annual revenue with a 8.4% net margin and $16 million in free cash flow. From a quality standpoint, Vericel shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 7.4 confirms fortress-level solvency. On valuation, the stock is commanding a steep 107.5x multiple, with trades far above its Graham Number ($7) with no margin of safety. Growth dynamics show revenue growing at 23.3% and profit growth of 17.4%. Our composite FairStock Score of 37/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Vericel's 23% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $16 million in annual free cash flow (0.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 108x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer