Heartware International Inc

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HTWR : NASDAQ : Health Care
$57.88 -0.01 | -0.02%
Today's Range: 57.82 - 57.99
Avg. Daily Volume: 656,000
07/27/16 - 4:00 PM ET

Financial Analysis

HEARTWARE INTERNATIONAL INC's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. HEARTWARE INTERNATIONAL INC is extremely liquid. Currently, the Quick Ratio is 4.42 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 12.20% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)55.0770.02
EBITDA ($mil)-12.55-0.37
EBIT ($mil)-14.62-2.58
Net Income ($mil)-17.46-14.54

Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)188.21172.88
Total Assets ($mil)431.31413.72
Total Debt ($mil)189.57116.87
Equity ($mil)175.57199.97

Profitability Q1 FY16 Q1 FY15
Gross Profit Margin61.9771.69
EBITDA Margin-22.78-0.52
Operating Margin-26.55-3.69
Sales Turnover0.610.68
Return on Assets-17.55-3.49
Return on Equity-43.11-7.22
Debt Q1 FY16 Q1 FY15
Current Ratio5.446.07
Interest Expense3.743.44
Interest Coverage-3.91-0.75

Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)17.5417.25
Div / share0.00.0
Book value / share10.0111.6
Institutional Own % n/a n/a
Avg Daily Volume635376.0432311.0


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 5.77 indicates a significant premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 4.84. 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, HEARTWARE INTERNATIONAL 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
HTWR NM Peers 62.82   HTWR NM Peers 33.31

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

HTWR's P/E is negative making this valuation measure meaningless.


Neutral. 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.

HTWR's P/CF is negative making the measure meaningless.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
HTWR NM Peers 29.14   HTWR NA Peers 1.03

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

HTWR's ratio is negative making this valuation measure meaningless.


Neutral. 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.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HTWR 5.77 Peers 4.84   HTWR -414.11 Peers 159.18

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.

HTWR 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, HTWR is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HTWR 3.87 Peers 4.71   HTWR -7.12 Peers 20.16

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.

HTWR 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.

HTWR significantly trails its peers on the basis of sales growth



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