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AtriCure

ATRC
57
Medical - Instruments & Supplies · Healthcare
Exchange
NASDAQ
Winston Score
57
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Good
Cash Flow
Strong
Stability
Strong
Valuation
Good

Winston Score History

The full picture

AtriCure makes medical devices used to treat heart rhythm problems, especially a condition called atrial fibrillation (AFib), where the heart beats irregularly. Its main products include surgical ablation systems that use heat or cold energy to create scar tissue on the heart, which helps restore a normal rhythm. The company sells primarily to hospitals and cardiac surgeons in the United States and internationally.

AtriCure earns revenue by selling its devices and disposable components, which surgeons use during open-heart and minimally invasive procedures. Most of its sales come from the U.S., though it has a growing international presence. Its competitive position comes from being one of the few companies focused specifically on surgical AFib treatment, giving it specialized expertise and established relationships with cardiac surgery teams. The key growth driver is expanding adoption of its minimally invasive procedures, but the company remains only marginally profitable, and any slowdown in procedure volumes or reimbursement changes from insurers could pressure its thin operating margins.

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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

+12.8% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+246.2% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

4.1%ownership

Flat

Insider ownership roughly steady over the past year

Cash Runway

~5 years

$168M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

$168M cash & investments at current burn rate

Growth context

AtriCure is growing revenue at 13% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

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

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Quality

Profit per sale
Gross Margin
77.2%
Premium pricing power — 77.2% gross margin
Profit after running costs
Operating Margin
6.3%
Modest — 6.3% operating margin
Return on the money invested
ROCE
2.4%
Weak — 2.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+13.9%
Fast-growing sales (+13.9% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
610%
Turns 610% of profit into real cash
Spare cash per sale
FCF Margin
8.2%
Modest free cash flow (8.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.12
Conservative — low debt load (0.12)
Covers its interest
Interest Cover
2.42x
Tight — interest eats into profit (2.4x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
223.8x
no trend
Expensive — P/E 223.8

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

Cheaper or dearer next year
P/E vs Forward
+166.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (223.8 → 57.2)

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Dividends

Not applicable for this business.
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