athenahealth Inc

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ATHN : NASDAQ : Technology
$145.25 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 693600.0
06/26/17 - 4:00 PM ET

Financial Analysis


ATHENAHEALTH INC's gross profit margin for the first quarter of its fiscal year 2017 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 strong liquidity. Currently, the Quick Ratio is 1.59 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 25.97% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)285.4256.1
EBITDA ($mil)39.834.6
EBIT ($mil)2.31.6
Net Income ($mil)-1.4-0.8


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)98.0100.59
Total Assets ($mil)1206.11085.31
Total Debt ($mil)283.7298.24
Equity ($mil)687.4545.67


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin61.4260.05
EBITDA Margin13.9413.51
Operating Margin0.810.62
Sales Turnover0.920.9
Return on Assets1.692.03
Return on Equity2.974.04
Debt Q1 FY17 Q1 FY16
Current Ratio1.841.76
Debt/Capital0.290.35
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)39.839.24
Div / share0.00.0
EPS-0.03-0.02
Book value / share17.2713.91
Institutional Own % n/a n/a
Avg Daily Volume694176.0490245.0

Valuation


HOLD. ATHENAHEALTH INC's P/E ratio indicates a significant premium compared to an average of 93.73 for the Health Care Technology industry and a significant premium compared to the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 8.60 indicates a significant premium versus the S&P 500 average of 3.09 and a significant premium versus the industry average of 6.48. 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 291.20 Peers 93.73   ATHN 32.06 Peers 37.69

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 62.93 Peers 46.76   ATHN 1.12 Peers 1.03

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ATHN 8.60 Peers 6.48   ATHN -8.93 Peers -9.22

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 significantly 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 5.31 Peers 6.12   ATHN 14.13 Peers 17.60

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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