Investment Thesis
AngioDynamics faces significant operational headwinds with negative operating income (-10.8% margin) and negative free cash flow (-$12.4M) despite a healthy gross margin of 55.8%, indicating execution and cost management issues. While the balance sheet remains solid with zero long-term debt and adequate liquidity (2.24x current ratio), the company is burning cash operationally and showing revenue contraction (-3.8% YoY), suggesting structural challenges in the medical device market. The modest improvement in net income YoY (+81.6%) is insufficient to offset deteriorating profitability trends and negative cash generation.
Strengths
- Strong gross margin of 55.8% indicates competitive pricing power and product quality
- Conservative balance sheet with zero long-term debt and $41.6M cash provides financial flexibility
- Healthy liquidity position with 2.24x current ratio and 1.33x quick ratio
- Improved net loss YoY (+81.6%) suggests some operational progress or one-time items
Risks
- Negative operating cash flow of -$11.3M indicates company is burning cash despite positive gross profit
- Revenue decline of 3.8% YoY combined with negative operating margins suggests demand weakness or market share loss
- Negative free cash flow of -$12.4M is unsustainable and will deplete cash reserves if trend continues
- Operating losses with -10.8% operating margin indicate inability to convert gross profits to operating profits
- No insider buying activity in last 90 days may reflect management concerns about near-term prospects
Key Metrics to Watch
- Operating cash flow trend - must return to positive to validate business model sustainability
- Revenue growth trajectory - need to stabilize declining top-line to assess market competitiveness
- Operating margin improvement - critical to reach profitability as cost structure appears misaligned with revenue base
- Free cash flow generation - key indicator of whether company can self-fund operations and R&D
- Gross margin stability - monitor if pricing power is maintained amid competitive pressures
Financial Metrics
Revenue
155.1M
Net Income
-17.3M
EPS (Diluted)
$-0.42
Free Cash Flow
-12.4M
Total Assets
269.7M
Cash
41.6M
Profitability Ratios
Gross Margin
55.8%
Operating Margin
-10.8%
Net Margin
-11.1%
ROE
-9.8%
ROA
-6.4%
FCF Margin
-8.0%
Balance Sheet & Liquidity
Current Ratio
2.24x
Quick Ratio
1.33x
Debt/Equity
0.00x
Debt/Assets
34.6%
Interest Coverage
N/A
Long-term Debt
0.0
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-19T18:14:33.287560 |
Data as of: 2025-11-30 |
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