athenahealth Inc

Find Ratings Reports
ATHN : NASDAQ : Technology
$96.2 | %
Today's Range: 94.15 - 96.65
Avg. Daily Volume: 596700.0
12/09/16 - 4:00 PM ET

Financial Analysis


ATHENAHEALTH INC's gross profit margin for the third 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. ATHENAHEALTH INC has average liquidity. Currently, the Quick Ratio is 1.50 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 17.13% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will 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 Q3 FY16 Q3 FY15
Net Sales ($mil)276.67236.07
EBITDA ($mil)55.7733.99
EBIT ($mil)18.353.19
Net Income ($mil)13.945.8


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)129.99116.71
Total Assets ($mil)1154.691091.4
Total Debt ($mil)290.98300.0
Equity ($mil)599.89512.15


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin63.4461.37
EBITDA Margin20.1514.39
Operating Margin6.631.35
Sales Turnover0.910.81
Return on Assets1.631.37
Return on Equity3.152.93
Debt Q3 FY16 Q3 FY15
Current Ratio1.711.72
Debt/Capital0.330.37
Interest Expense1.341.62
Interest Coverage13.751.97


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)39.4238.81
Div / share0.00.0
EPS0.350.15
Book value / share15.2213.2
Institutional Own % n/a n/a
Avg Daily Volume579950.0333468.0

Valuation


HOLD. ATHENAHEALTH INC's P/E ratio indicates a significant premium compared to an average of 83.15 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 25.79. Conducting a second comparison, its price-to-book ratio of 6.11 indicates a significant premium versus the S&P 500 average of 2.86 and a premium versus the industry average of 4.92. 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 197.98 Peers 83.15   ATHN 18.59 Peers 22.54

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.

 

Discount. 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 discount 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 43.28 Peers 37.79   ATHN 0.48 Peers 1.50

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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ATHN 6.11 Peers 4.92   ATHN 23.68 Peers 28.71

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 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 3.49 Peers 5.39   ATHN 19.52 Peers 23.58

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 significant 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

 

 

Latest Stock Upgrades/Downgrades