Abiomed Inc

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ABMD : NASDAQ : Health Care
$123.53 | %
Today's Range: 123.06 - 126.09
Avg. Daily Volume: 473,800
09/23/16 - 4:00 PM ET

Financial Analysis


ABIOMED INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. ABIOMED INC is extremely liquid. Currently, the Quick Ratio is 6.12 which clearly shows the ability to cover any short-term cash needs. ABMD 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 22.48% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)103.073.43
EBITDA ($mil)22.8215.85
EBIT ($mil)21.4115.18
Net Income ($mil)12.918.86


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)223.17154.92
Total Assets ($mil)429.31352.01
Total Debt ($mil)0.00.0
Equity ($mil)377.33308.05


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin86.7386.1
EBITDA Margin22.1521.57
Operating Margin20.7920.67
Sales Turnover0.840.72
Return on Assets9.8235.29
Return on Equity11.1840.33
Debt Q1 FY16 Q1 FY15
Current Ratio6.956.73
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)43.0142.02
Div / share0.00.0
EPS0.290.2
Book value / share8.777.33
Institutional Own % n/a n/a
Avg Daily Volume540230.0684481.0

Valuation


BUY. ABIOMED INC's P/E ratio indicates a significant premium compared to an average of 44.20 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 14.40 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 5.05. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, ABIOMED INC proves to trade 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
ABMD 135.88 Peers 44.20   ABMD 58.60 Peers 28.91

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

ABMD 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.

ABMD is trading at a significant 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
ABMD 73.05 Peers 25.07   ABMD 3.73 Peers 0.84

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

ABMD 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.

ABMD 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
ABMD 14.40 Peers 5.05   ABMD -67.14 Peers 23.13

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ABMD is trading at a significant premium to its peers.

 

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

However, ABMD 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
ABMD 15.13 Peers 14.71   ABMD 40.86 Peers 18.35

Average. 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.

ABMD is trading at a valuation on par with its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ABMD has a sales growth rate that significantly exceeds its peers.

 

 

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