-0.63 | -1.74%
ARTHROCARE CORP's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. ARTHROCARE CORP is extremely liquid. Currently, the Quick Ratio is 5.75 which clearly shows the ability to cover any short-term cash needs. ARTC managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 14.76% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 92.35 | 92.87 |
| EBITDA ($mil) | 21.33 | 23.94 |
| EBIT ($mil) | 17.36 | 18.62 |
| Net Income ($mil) | 11.19 | 12.96 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 230.0 | 161.98 |
| Total Assets ($mil) | 528.38 | 468.79 |
| Total Debt ($mil) | 0.0 | 0.0 |
| Equity ($mil) | 459.42 | 400.33 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 73.16 | 75.61 |
| EBITDA Margin | 23.09 | 25.77 |
| Operating Margin | 18.8 | 20.05 |
| Sales Turnover | 0.7 | 0.77 |
| Return on Assets | 8.44 | -0.15 |
| Return on Equity | 8.92 | -1.44 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 7.13 | 5.96 |
| Debt/Capital | 0.0 | 0.0 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 28.19 | 27.65 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.3 | 0.36 |
| Book value / share | 16.3 | 14.48 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 107827.0 | 98563.0 |
BUY. This stock's P/E ratio indicates a premium compared to an average of 21.51 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 18.91. To use another comparison, its price-to-book ratio of 2.15 indicates valuation on par with the S&P 500 average of 2.42 and a discount versus the industry average of 3.60. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ARTC 28.93 | Peers 21.51 | ARTC 11.98 | Peers 14.47 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. ARTC is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ARTC is trading at a discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| ARTC 22.81 | Peers 19.40 | ARTC 2.13 | Peers 1.61 | |||||||||||||||||||||
|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. ARTC is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ARTC trades at a significant premium to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| ARTC 2.15 | Peers 3.60 | ARTC 436.11 | Peers -15.75 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ARTC is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. ARTC is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| ARTC 2.68 | Peers 7.13 | ARTC 2.25 | Peers 7.25 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ARTC is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. ARTC significantly trails its peers on the basis of sales growth |
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