Abiomed Inc

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ABMD : NASDAQ : Health Care
$162.8 up 3.0 | 1.9%
Today's Range: 159.51 - 162.73
Avg. Daily Volume: 300900.0
09/22/17 - 1:28 PM ET

Financial Analysis


ABIOMED INC's gross profit margin for the first quarter of its fiscal year 2017 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 5.17 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 50.27% 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 FY17 Q1 FY16
Net Sales ($mil)132.47103.0
EBITDA ($mil)35.8122.82
EBIT ($mil)33.3421.41
Net Income ($mil)37.3712.91


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)251.41223.17
Total Assets ($mil)652.22429.31
Total Debt ($mil)16.150.0
Equity ($mil)567.04377.33


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin85.3686.73
EBITDA Margin27.0222.15
Operating Margin25.1720.79
Sales Turnover0.730.84
Return on Assets11.749.82
Return on Equity13.511.18
Debt Q1 FY17 Q1 FY16
Current Ratio5.956.95
Debt/Capital0.030.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)44.0843.01
Div / share0.00.0
EPS0.820.29
Book value / share12.868.77
Institutional Own % n/a n/a
Avg Daily Volume293938.0307643.0

Valuation


BUY. ABIOMED INC's P/E ratio indicates a significant premium compared to an average of 48.70 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 12.35 indicates a significant premium versus the S&P 500 average of 3.10 and a significant premium versus the industry average of 4.90. 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 94.01 Peers 48.70   ABMD 55.83 Peers 37.09

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 61.10 Peers 33.41   ABMD 1.04 Peers 1.03

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ABMD 12.35 Peers 4.90   ABMD 81.72 Peers 47.56

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.

 

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

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

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ABMD 14.75 Peers 5.32   ABMD 32.21 Peers 15.38

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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