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ABCO : NASDAQ : Services
$51.65 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 508600.0
08/22/17 - 4:00 PM ET

Financial Analysis

ADVISORY BOARD CO's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. ADVISORY BOARD CO has average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 32.89% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)200.3198.38
EBITDA ($mil)35.7638.78
EBIT ($mil)14.1219.86
Net Income ($mil)14.757.5

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)144.0317.49
Total Assets ($mil)2045.251903.8
Total Debt ($mil)598.98568.02
Equity ($mil)566.07425.94

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin50.2352.28
EBITDA Margin17.8519.54
Operating Margin7.0510.01
Sales Turnover0.390.42
Return on Assets5.27-4.55
Return on Equity19.04-20.37
Debt Q2 FY17 Q2 FY16
Current Ratio1.060.91
Interest Expense4.734.39
Interest Coverage2.984.53

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)40.6540.26
Div / share0.00.0
Book value / share13.9310.58
Institutional Own % n/a n/a
Avg Daily Volume483204.0533289.0


HOLD. The current P/E ratio indicates a significant discount compared to an average of 35.63 for the Professional Services industry and a discount compared to the S&P 500 average of 24.23. Conducting a second comparison, its price-to-book ratio of 3.67 indicates a premium versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 8.51. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of 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 19.26 Peers 35.63   ABCO 19.13 Peers 19.33

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ABCO is trading at a significant discount to its peers.


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 24.54 Peers 20.73   ABCO NM Peers 0.69

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.

ABCO's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ABCO 3.67 Peers 8.51   ABCO 228.64 Peers 29.15

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.


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

ABCO is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ABCO 2.60 Peers 3.98   ABCO -0.68 Peers 12.60

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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