ABIOMED INC (ABMD) Stock Fundamental Analysis
NASDAQ:ABMD - Nasdaq - US0036541003 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to ABMD. ABMD was compared to 189 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making ABMD a very profitable company, without any liquidiy or solvency issues. ABMD has a decent growth rate and is not valued too expensively. These ratings would make ABMD suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ABMD was profitable.
In the past year ABMD had a positive cash flow from operations.
Each year in the past 5 years ABMD has been profitable.
In the past 5 years ABMD always reported a positive cash flow from operatings.
1.2 Ratios
ABMD has a better Return On Assets (15.72%) than 94.52% of its industry peers.
With an excellent Return On Equity value of 17.32%, ABMD belongs to the best of the industry, outperforming 93.61% of the companies in the same industry.
ABMD's Return On Invested Capital of 12.19% is amongst the best of the industry. ABMD outperforms 89.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ABMD is significantly above the industry average of 8.22%.
The 3 year average ROIC (29.16%) for ABMD is well above the current ROIC(12.19%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.72% | ||
| ROE | 17.32% | ||
| ROIC | 12.19% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.16%
ROIC(5y)N/A
1.3 Margins
ABMD's Profit Margin of 24.84% is amongst the best of the industry. ABMD outperforms 95.43% of its industry peers.
ABMD's Profit Margin has improved in the last couple of years.
ABMD's Operating Margin of 23.66% is amongst the best of the industry. ABMD outperforms 93.61% of its industry peers.
In the last couple of years the Operating Margin of ABMD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.66% | ||
| PM (TTM) | 24.84% | ||
| GM | N/A |
OM growth 3Y-5.22%
OM growth 5Y4.22%
PM growth 3Y-26.75%
PM growth 5Y2.49%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ABMD is creating value.
Compared to 1 year ago, ABMD has more shares outstanding
ABMD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 68.47 indicates that ABMD is not in any danger for bankruptcy at the moment.
ABMD has a better Altman-Z score (68.47) than 99.54% of its industry peers.
ABMD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 68.47 |
ROIC/WACC1.34
WACC9.07%
2.3 Liquidity
ABMD has a Current Ratio of 7.93. This indicates that ABMD is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ABMD (7.93) is better than 83.11% of its industry peers.
A Quick Ratio of 7.17 indicates that ABMD has no problem at all paying its short term obligations.
The Quick ratio of ABMD (7.17) is better than 82.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.93 | ||
| Quick Ratio | 7.17 |
3. Growth
3.1 Past
The earnings per share for ABMD have decreased by -3.78% in the last year.
Measured over the past years, ABMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.92% on average per year.
The Revenue has grown by 10.32% in the past year. This is quite good.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.78%
EPS 3Y-2.48%
EPS 5Y30.92%
EPS Q2Q%26.21%
Revenue 1Y (TTM)10.32%
Revenue growth 3Y10.27%
Revenue growth 5Y18.3%
Sales Q2Q%7.16%
3.2 Future
Based on estimates for the next years, ABMD will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.71% on average per year.
Based on estimates for the next years, ABMD will show a quite strong growth in Revenue. The Revenue will grow by 11.13% on average per year.
EPS Next Y3.83%
EPS Next 2Y9.68%
EPS Next 3Y14%
EPS Next 5Y15.71%
Revenue Next Year10.29%
Revenue Next 2Y12.97%
Revenue Next 3Y13.62%
Revenue Next 5Y11.13%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 78.72, ABMD can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ABMD is valued a bit cheaper than 71.69% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.62. ABMD is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 66.96, the valuation of ABMD can be described as expensive.
Based on the Price/Forward Earnings ratio, ABMD is valued a bit cheaper than the industry average as 73.06% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, ABMD is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.72 | ||
| Fwd PE | 66.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABMD is valued a bit cheaper than 69.41% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ABMD indicates a rather cheap valuation: ABMD is cheaper than 80.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.09 | ||
| EV/EBITDA | 55.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ABMD may justify a higher PE ratio.
A more expensive valuation may be justified as ABMD's earnings are expected to grow with 14.00% in the coming years.
PEG (NY)20.54
PEG (5Y)2.55
EPS Next 2Y9.68%
EPS Next 3Y14%
5. Dividend
5.1 Amount
ABMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
381.02
+0.23 (+0.06%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners1.66%
Ins Owner Change0%
Market Cap17.18B
Analysts70
Price Target375.36 (-1.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.37%
Min EPS beat(2)-5.24%
Max EPS beat(2)15.98%
EPS beat(4)3
Avg EPS beat(4)8.26%
Min EPS beat(4)-5.24%
Max EPS beat(4)15.98%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-14.37%
Min Revenue beat(2)-16.89%
Max Revenue beat(2)-11.85%
Revenue beat(4)0
Avg Revenue beat(4)-11.39%
Min Revenue beat(4)-16.89%
Max Revenue beat(4)-6.39%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)19.09%
PT rev (3m)N/A
EPS NQ rev (1m)4.13%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.46%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-3.26%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.72 | ||
| Fwd PE | 66.96 | ||
| P/S | 16 | ||
| P/FCF | 79.09 | ||
| P/OCF | 68.45 | ||
| P/B | 11.16 | ||
| P/tB | 12.15 | ||
| EV/EBITDA | 55.82 |
EPS(TTM)4.84
EY1.27%
EPS(NY)5.69
Fwd EY1.49%
FCF(TTM)4.82
FCFY1.26%
OCF(TTM)5.57
OCFY1.46%
SpS23.82
BVpS34.15
TBVpS31.36
PEG (NY)20.54
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.72% | ||
| ROE | 17.32% | ||
| ROCE | N/A | ||
| ROIC | 12.19% | ||
| ROICexc | 25.66% | ||
| ROICexgc | 30.76% | ||
| OM | 23.66% | ||
| PM (TTM) | 24.84% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.16%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-10.63%
ROICexcg growth 5Y-2.2%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-5.22%
OM growth 5Y4.22%
PM growth 3Y-26.75%
PM growth 5Y2.49%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 122.5% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 81.43% | ||
| Current Ratio | 7.93 | ||
| Quick Ratio | 7.17 | ||
| Altman-Z | 68.47 |
F-Score6
WACC9.07%
ROIC/WACC1.34
Cap/Depr(3y)188.19%
Cap/Depr(5y)276.96%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)138.14%
Profit Quality(5y)123.31%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.78%
EPS 3Y-2.48%
EPS 5Y30.92%
EPS Q2Q%26.21%
EPS Next Y3.83%
EPS Next 2Y9.68%
EPS Next 3Y14%
EPS Next 5Y15.71%
Revenue 1Y (TTM)10.32%
Revenue growth 3Y10.27%
Revenue growth 5Y18.3%
Sales Q2Q%7.16%
Revenue Next Year10.29%
Revenue Next 2Y12.97%
Revenue Next 3Y13.62%
Revenue Next 5Y11.13%
EBIT growth 1Y-2.58%
EBIT growth 3Y4.52%
EBIT growth 5Y23.29%
EBIT Next Year13.8%
EBIT Next 3Y20.3%
EBIT Next 5Y16.96%
FCF growth 1Y-11.7%
FCF growth 3Y6.24%
FCF growth 5Y31%
OCF growth 1Y-11.94%
OCF growth 3Y4.21%
OCF growth 5Y19.91%