athenahealth Inc

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ATHN : NASDAQ : Technology
$115.96 -0.36 | -0.31%
Today's Range: 115.0 - 116.82
Avg. Daily Volume: 727700.0
02/23/17 - 4:00 PM ET

Financial Analysis


ATHENAHEALTH INC's gross profit margin for the fourth quarter of its fiscal year 2016 has decreased 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 1.62 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 16.56% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)288.14257.53
EBITDA ($mil)0.039.98
EBIT ($mil)20.617.95
Net Income ($mil)9.817.72


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)147.4141.93
Total Assets ($mil)1189.21118.66
Total Debt ($mil)291.1298.12
Equity ($mil)633.3543.31


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin52.863.58
EBITDA Margin0.015.52
Operating Margin7.153.09
Sales Turnover0.910.83
Return on Assets1.761.25
Return on Equity3.312.58
Debt Q4 FY16 Q4 FY15
Current Ratio1.731.65
Debt/Capital0.310.35
Interest Expense1.11.6
Interest Coverage18.794.95


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)39.538.93
Div / share0.00.0
EPS0.240.19
Book value / share16.0313.96
Institutional Own % n/a n/a
Avg Daily Volume711848.0491566.0

Valuation


HOLD. This stock's P/E ratio indicates a premium compared to an average of 219.87 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 26.35. For additional comparison, its price-to-book ratio of 7.29 indicates a significant premium versus the S&P 500 average of 2.94 and a significant premium versus the industry average of 5.45. 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 224.88 Peers 219.87   ATHN 25.30 Peers 23.83

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

ATHN is trading at a valuation on par with 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 38.85 Peers 34.12   ATHN 0.59 Peers 0.77

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

ATHN is trading at a significant premium to 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ATHN 7.29 Peers 5.45   ATHN 48.57 Peers 27.11

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.

 

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

ATHN 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
ATHN 4.27 Peers 5.40   ATHN 17.10 Peers 22.65

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 trails its peers on the basis of sales growth

 

 

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