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ABCO : NASDAQ : Services
$46.3 up 0.95 | 2.1%
Today's Range: 45.2 - 46.625
Avg. Daily Volume: 716200.0
02/28/17 - 9:42 AM ET

Financial Analysis

ADVISORY BOARD CO's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. ADVISORY BOARD CO has weak liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 16.70% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)200.46200.49
EBITDA ($mil)32.136.6
EBIT ($mil)12.9218.09
Net Income ($mil)37.540.67

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)55.0956.08
Total Assets ($mil)1970.962102.49
Total Debt ($mil)562.21557.31
Equity ($mil)470.6564.96

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin48.448.92
EBITDA Margin16.0118.25
Operating Margin6.459.02
Sales Turnover0.410.34
Return on Assets-2.53-0.89
Return on Equity-10.6-3.31
Debt Q3 FY16 Q3 FY15
Current Ratio0.980.98
Interest Expense4.535.33
Interest Coverage2.853.39

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)40.1441.89
Div / share0.00.0
Book value / share11.7313.49
Institutional Own % n/a n/a
Avg Daily Volume698349.0303862.0


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Conducting a second comparison, its price-to-book ratio of 3.98 indicates a premium versus the S&P 500 average of 2.96 and a significant discount versus the industry average of 7.99. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, ADVISORY BOARD CO proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ABCO NM Peers 37.86   ABCO 17.13 Peers 18.41

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

ABCO's P/E is negative making this valuation measure meaningless.


Average. 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.

ABCO is trading at a valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ABCO 24.55 Peers 19.83   ABCO NA Peers 3.08

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

ABCO is trading at a significant premium to its peers.


Neutral. 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.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ABCO 3.98 Peers 7.99   ABCO -139.58 Peers 28.17

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.

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

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ABCO 2.33 Peers 3.79   ABCO 12.74 Peers 31.57

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.

ABCO 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.

ABCO significantly trails its peers on the basis of sales growth



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