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Vericel Corporation

VCEL
53
Biotechnology · Healthcare
Price
$46.64
-1.17 (-2.45%)
Market Cap
$2.38B
Exchange
NASDAQ
Winston Score
53
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+12.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 46.5M (2021) → 52.1M (2025)

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

Winston Score History

Politician Trades

2 trades / 12mo

0 Congressional buys and 2 sells on VCEL in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+30.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+47.8% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$28M/ year

Rising (+11% vs prior year)

10.0% of revenue

Below sector average (18%)

R&D investment increasing — building for the future

Insider Activity

1.2%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$109M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Vericel Corporation grew revenue 30% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
72.0%
Premium pricing power — 72.0% gross margin
Operating Margin
-11.8%
Losing money on operations — -11.8%
ROCE
-1.8%
Weak — -1.8% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
+22.4%
Fast-growing sales (22.4% YoY)
EPS YoY
+674.4%
Earnings growing fast (674.4% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
287%
Turns 287% of profit into real cash
FCF Margin
10.1%
Modest free cash flow (10.1%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.27
Conservative — low debt load (0.27)
Interest Cover
24.76x
Comfortably covers interest (24.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
108.7x
Expensive — P/E 108.7

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+76.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (108.7 → 32.4)

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Dividends

Not applicable for this business.
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