Taking everything into account, ABMD scores 6 out of 10 in our fundamental rating. ABMD was compared to 184 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make ABMD a good candidate for quality investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.

1.2 Ratios

The Return On Assets of ABMD (15.72%) is better than 94.52% of its industry peers.
The Return On Equity of ABMD (17.32%) is better than 93.61% of its industry peers.
ABMD has a Return On Invested Capital of 12.19%. This is amongst the best in the industry. ABMD outperforms 89.95% of its industry peers.
ABMD had an Average Return On Invested Capital over the past 3 years of 29.16%. This is significantly above the industry average of 8.81%.
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 has a better Profit Margin (24.84%) than 95.43% of its industry peers.
In the last couple of years the Profit Margin of ABMD has grown nicely.
The Operating Margin of ABMD (23.66%) is better than 93.61% of its industry peers.
ABMD's Operating Margin has improved in the last couple of years.

		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

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ABMD is creating value.
ABMD has more shares outstanding than it did 1 year ago.
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.
Looking at the Altman-Z score, with a value of 68.47, ABMD belongs to the top of the industry, outperforming 99.54% of the companies in the same industry.
There is no outstanding debt for ABMD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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.
ABMD's Current ratio of 7.93 is amongst the best of the industry. ABMD outperforms 83.11% of its industry peers.
ABMD has a Quick Ratio of 7.17. This indicates that ABMD is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 7.17, ABMD belongs to the top of the industry, outperforming 82.19% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	7.93
Quick Ratio	7.17

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for ABMD have decreased by -3.78% in the last year.
The Earnings Per Share has been growing by 30.92% on average over the past years. This is a very strong growth
Looking at the last year, ABMD shows a quite strong growth in Revenue. The Revenue has grown by 10.32% in the last year.
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

The Earnings Per Share is expected to grow by 15.71% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.13% on average over the next years. This is quite good.

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

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 78.72, the valuation of ABMD can be described as expensive.
ABMD's Price/Earnings ratio is a bit cheaper when compared to the industry. ABMD is cheaper than 71.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.25, ABMD is valued quite expensively.
ABMD is valuated quite expensively with a Price/Forward Earnings ratio of 66.96.
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.
The average S&P500 Price/Forward Earnings ratio is at 25.98. ABMD is valued rather expensively when compared to this.

		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 the industry average as 69.41% of the companies are valued more expensively.
ABMD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ABMD is cheaper than 80.82% of the companies 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 ABMD does not grow enough to justify the current Price/Earnings ratio.
ABMD has a very decent profitability rating, which may justify a higher PE ratio.
ABMD's earnings are expected to grow with 14.00% in the coming years. This may justify a more expensive valuation.