Abiomed Inc

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ABMD : NASDAQ : Health Care
$112.3 up 0.73 | 0.65%
Today's Range: 110.45 - 112.6
Avg. Daily Volume: 570100.0
01/24/17 - 4:00 PM ET

Financial Analysis


ABIOMED INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ABIOMED INC is extremely liquid. Currently, the Quick Ratio is 5.38 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 increased by 20.34% 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 FY16 Q2 FY15
Net Sales ($mil)102.9676.36
EBITDA ($mil)16.0713.66
EBIT ($mil)14.5212.97
Net Income ($mil)8.887.74


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)232.95175.51
Total Assets ($mil)474.9373.41
Total Debt ($mil)16.70.0
Equity ($mil)398.44331.1


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin84.785.0
EBITDA Margin15.617.89
Operating Margin14.116.99
Sales Turnover0.810.75
Return on Assets9.1234.31
Return on Equity10.8738.7
Debt Q2 FY16 Q2 FY15
Current Ratio6.167.7
Debt/Capital0.040.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)43.3342.42
Div / share0.00.0
EPS0.20.17
Book value / share9.197.81
Institutional Own % n/a n/a
Avg Daily Volume568768.0393452.0

Valuation


HOLD. ABIOMED INC's P/E ratio indicates a significant premium compared to an average of 70.08 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.41. For additional comparison, its price-to-book ratio of 12.20 indicates a significant premium versus the S&P 500 average of 2.83 and a significant premium versus the industry average of 8.38. The price-to-sales ratio is well above both the S&P 500 average and 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 116.89 Peers 70.08   ABMD 52.63 Peers 23.99

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 62.86 Peers 23.57   ABMD 3.68 Peers 0.99

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 12.20 Peers 8.38   ABMD -67.02 Peers 84.74

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 12.61 Peers 6.12   ABMD 38.06 Peers 17.21

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.

ABMD is trading at a significant premium to its industry.

 

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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