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Thoratec Corp
THOR : NASDAQ : Health Care
$62.59 | %
Today's Range: 62.39 - 62.65
Avg. Daily Volume: 1,277,100
08/28/15 - 4:00 PM ET

Financial Analysis


THORATEC CORP's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. THORATEC CORP is extremely liquid. Currently, the Quick Ratio is 4.42 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained unchanged 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.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)128.69118.06
EBITDA ($mil)20.9729.58
EBIT ($mil)17.5225.53
Net Income ($mil)13.2517.41


Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)273.97291.2
Total Assets ($mil)817.18786.25
Total Debt ($mil)0.00.0
Equity ($mil)680.23677.24


Profitability Q2 FY15 Q2 FY14
Gross Profit Margin71.1873.61
EBITDA Margin16.2925.05
Operating Margin13.6121.63
Sales Turnover0.590.63
Return on Assets4.748.6
Return on Equity5.699.98
Debt Q2 FY15 Q2 FY14
Current Ratio5.546.67
Debt/Capital0.00.0
Interest Expense0.010.0
Interest Coverage1347.6912766.5


Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)54.7456.33
Div / share0.00.0
EPS0.240.3
Book value / share12.4312.02
Institutional Own % n/a n/a
Avg Daily Volume1071935.0500124.0

Valuation


HOLD. THORATEC CORP's P/E ratio indicates a significant premium compared to an average of 35.41 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 20.51. To use another comparison, its price-to-book ratio of 5.05 indicates a significant premium versus the S&P 500 average of 2.73 and a significant discount versus the industry average of 14.70. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, THORATEC CORP seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
THOR 89.71 Peers 35.41   THOR 31.87 Peers 25.80

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

THOR is trading at a significant premium to its peers.

 

Premium. 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.

THOR is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
THOR 40.00 Peers 25.02   THOR 1.77 Peers 0.85

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

THOR 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.

THOR trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
THOR 5.05 Peers 14.70   THOR -40.18 Peers 10.20

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.

THOR is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, THOR is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
THOR 7.11 Peers 5.84   THOR -2.93 Peers 10.63

Premium. 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.

THOR is trading at a premium to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

THOR significantly trails its peers on the basis of sales growth

 

 

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