athenahealth Inc

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ATHN : NASDAQ : Technology
$98.0 -23.0 | -19.0%
Today's Range: 96.12 - 102.56
Avg. Daily Volume: 416800.0
04/28/17 - 3:59 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
Interest Expense1.11.6
Interest Coverage18.794.95

Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)39.538.93
Div / share0.00.0
Book value / share16.0313.96
Institutional Own % n/a n/a
Avg Daily Volume414528.0752747.0


HOLD. This stock's P/E ratio indicates a premium compared to an average of 225.24 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 24.92. For additional comparison, its price-to-book ratio of 7.37 indicates a significant premium versus the S&P 500 average of 2.99 and a significant premium versus the industry average of 5.66. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ATHN 227.13 Peers 225.24   ATHN 25.55 Peers 26.16

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
ATHN 39.24 Peers 36.79   ATHN 0.61 Peers 0.94

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ATHN 7.37 Peers 5.66   ATHN 48.57 Peers -49.25

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.


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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ATHN 4.31 Peers 5.55   ATHN 17.10 Peers 20.67

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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