athenahealth Inc.

Find Ratings Reports
ATHN : NASDAQ : Technology Services
$139.88 | %
Today's Range: 137.34 - 140.22
Avg. Daily Volume: 448100.0
02/23/18 - 4:00 PM ET

Financial Analysis


ATHENAHEALTH INC's gross profit margin for the fourth quarter of its fiscal year 2017 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. ATHENAHEALTH INC has strong liquidity. Currently, the Quick Ratio is 1.67 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 24.98% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)329.2288.2
EBITDA ($mil)98.159.3
EBIT ($mil)60.120.6
Net Income ($mil)31.69.8


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)165.1147.4
Total Assets ($mil)1332.31189.2
Total Debt ($mil)272.8291.1
Equity ($mil)791.5633.3


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin68.1366.27
EBITDA Margin29.7920.57
Operating Margin18.267.15
Sales Turnover0.920.91
Return on Assets3.981.76
Return on Equity6.73.31
Debt Q4 FY17 Q4 FY16
Current Ratio1.841.73
Debt/Capital0.260.31
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)40.139.5
Div / share0.00.0
EPS0.780.24
Book value / share19.7416.03
Institutional Own % n/a n/a
Avg Daily Volume467495.0545604.0

Valuation


BUY. ATHENAHEALTH INC's P/E ratio indicates a significant premium compared to an average of 52.14 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 25.25. For additional comparison, its price-to-book ratio of 7.00 indicates a significant premium versus the S&P 500 average of 3.23 and a significant premium versus the industry average of 5.32. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, ATHENAHEALTH 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
ATHN 105.51 Peers 52.14   ATHN 22.99 Peers 22.74

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

ATHN is trading at a significant premium 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.

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

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ATHN 30.44 Peers 33.92   ATHN 0.55 Peers 5.23

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

ATHN is trading at a valuation on par with its peers.

 

Discount. 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.

ATHN trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ATHN 7.00 Peers 5.32   ATHN 151.92 Peers 182.25

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.

ATHN 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, ATHN is expected to 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
ATHN 4.54 Peers 5.56   ATHN 12.68 Peers 19.25

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.

ATHN is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ATHN significantly trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades