athenahealth Inc

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ATHN : NASDAQ : Technology
$124.68 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 345,400
08/23/16 - 4:00 PM ET

Financial Analysis


ATHENAHEALTH 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. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. ATHENAHEALTH INC has average liquidity. Currently, the Quick Ratio is 1.49 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 17.75% 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.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)261.94224.69
EBITDA ($mil)32.926.34
EBIT ($mil)-0.33-1.95
Net Income ($mil)-1.929.35


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)134.3114.45
Total Assets ($mil)1119.771052.2
Total Debt ($mil)294.61300.0
Equity ($mil)565.57480.31


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin61.1261.65
EBITDA Margin12.5611.72
Operating Margin-0.13-0.87
Sales Turnover0.90.79
Return on Assets0.960.72
Return on Equity1.91.58
Debt Q2 FY16 Q2 FY15
Current Ratio1.681.67
Debt/Capital0.340.38
Interest Expense1.541.51
Interest Coverage-0.21-1.29


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)39.3138.62
Div / share0.00.0
EPS-0.050.24
Book value / share14.3912.44
Institutional Own % n/a n/a
Avg Daily Volume368371.0402641.0

Valuation


HOLD. ATHENAHEALTH INC's P/E ratio indicates a significant premium compared to an average of 122.18 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 8.44 indicates a significant premium versus the S&P 500 average of 2.83 and a significant premium versus the industry average of 5.57. 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 449.85 Peers 122.18   ATHN 27.84 Peers 24.10

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.

 

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.

ATHN is trading at a 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
ATHN 55.21 Peers 36.12   ATHN 1.11 Peers 1.34

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 8.44 Peers 5.57   ATHN 42.10 Peers 22.82

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 4.72 Peers 5.72   ATHN 21.19 Peers 54.62

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

 

 

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