Natus Medical Inc

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BABY : NASDAQ : Health Care
$39.32 -0.39 | -0.98%
Today's Range: 38.30 - 39.48
Avg. Daily Volume: 268,000
09/27/16 - 4:00 PM ET

Financial Analysis


NATUS MEDICAL 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. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. NATUS MEDICAL INC is extremely liquid. Currently, the Quick Ratio is 2.45 which clearly shows the ability to cover any short-term cash needs. BABY managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 6.00% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)95.9691.94
EBITDA ($mil)19.1918.36
EBIT ($mil)15.0114.16
Net Income ($mil)10.519.85


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)96.2873.24
Total Assets ($mil)486.09453.86
Total Debt ($mil)10.00.0
Equity ($mil)396.22373.77


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin61.9564.64
EBITDA Margin19.9919.96
Operating Margin15.6515.4
Sales Turnover0.780.8
Return on Assets7.928.08
Return on Equity9.729.82
Debt Q2 FY16 Q2 FY15
Current Ratio3.183.44
Debt/Capital0.020.0
Interest Expense0.10.0
Interest Coverage153.20.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)32.9433.08
Div / share0.00.0
EPS0.320.3
Book value / share12.0311.3
Institutional Own % n/a n/a
Avg Daily Volume274382.0402565.0

Valuation


BUY. NATUS MEDICAL INC's P/E ratio indicates a discount compared to an average of 44.20 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 3.69 indicates a premium versus the S&P 500 average of 2.82 and a discount versus the industry average of 5.05. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, NATUS MEDICAL INC proves to trade at a discount 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
BABY 37.93 Peers 44.20   BABY 29.14 Peers 28.91

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

BABY is trading at a discount to 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.

BABY 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
BABY 23.61 Peers 25.07   BABY 0.79 Peers 0.84

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

BABY is trading at a valuation on par with 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.

BABY 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
BABY 3.69 Peers 5.05   BABY 4.46 Peers 23.13

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BABY is trading at a significant discount to its peers.

 

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

However, BABY 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
BABY 3.87 Peers 14.71   BABY 3.45 Peers 18.35

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.

BABY 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.

BABY significantly trails its peers on the basis of sales growth

 

 

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