AngioDynamics (ANGO) remains unprofitable, with annual losses increasing by 1.3% on average over the last five years. Net profit margins have failed to improve and the company’s earnings quality trails expectations. Looking ahead, the company is tipped to turn profitable within the next three years, with forecast annual earnings growth of 62.02% and revenue set to grow 6.3% per year, even if that is behind the US market’s 9.8% pace. Investors are weighing that aggressive growth outlook against a relatively low price-to-sales ratio of 1.6x versus peers and the industry. This gives the current results clear context for the value debate around AngioDynamics.

Next, we will see how the latest numbers match up with the dominant narratives investors follow for AngioDynamics and whether they reinforce or disrupt the story so far.

Profit Margins on the Mend

• Analysts predict that profit margins will improve from -11.6% currently to 3.1% in three years, signaling a potential turnaround in the company’s path toward profitability.
• The consensus narrative highlights several levers for this shift:
  • New CPT codes effective 2026 and 2027 for NanoKnife procedures are expected to accelerate adoption of higher-margin products and support margin expansion.
  • Operational improvements and manufacturing transitions are projected to deliver approximately $15 million in annualized cost savings by FY27, reinforcing the move to positive net margins.

Growth Lags Top Industry Peers

• While AngioDynamics’ forecast annual revenue growth of 6.3% is positive, it trails the broader US market’s 9.8% rate and leaves the company expanding slower than key industry benchmarks.
• According to the analysts’ consensus, growth will be driven by rising global demand for minimally invasive therapies and product launches in new geographies. However, heavy reliance on proprietary technology and reimbursement delays create tension:
  • Successful international expansion via recent approvals is designed to support double-digit sector growth, but a history of regulatory delays means actual uptake could underwhelm analysts’ projections.
  • High dependence on platforms like NanoKnife and Auryon concentrates risk. Any clinical or reimbursement hurdles could sharply curtail expected gains in key segments.

Value Gap Remains Versus Peers

• AngioDynamics trades at a price-to-sales ratio of 1.6x, considerably below both the peer group average of 5.2x and the US Medical Equipment industry at 2.8x, making its valuation look relatively attractive for investors seeking discounted opportunities.
• The consensus narrative argues that this discount reflects ongoing unprofitability and risk, but also positions the stock for potential upside if projected margin gains and sales forecasts are achieved:
  • The current share price of $11.74 stands 35.7% below the consensus analyst price target of $18.25, leaving room for re-rating if the path to sustained profitability becomes clearer.
  • Still, with a future PE ratio assumption of 82.5x by 2028, a steep premium to the sector average, the upside case depends on strong follow-through of both revenue and margin improvement to justify that multiple.
• For a balanced perspective on how analysts weigh these upside catalysts and execution risks, read the consensus narrative for AngioDynamics and see how the latest figures alter the broader story. 📊 Read the full AngioDynamics Consensus Narrative.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for AngioDynamics on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding AngioDynamics.

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AngioDynamics faces persistent unprofitability, experiences slower revenue growth compared to industry peers, and depends heavily on a few core products, which increases execution risk.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.