We assign a fundamental rating of 5 out of 10 to AORT. AORT was compared to 186 industry peers in the Health Care Equipment & Supplies industry. AORT has only an average score on both its financial health and profitability. AORT has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AORT has reported negative net income.
In the past year AORT had a positive cash flow from operations.
In the past 5 years AORT always reported negative net income.
In multiple years AORT reported negative operating cash flow during the last 5 years.

1.2 Ratios

AORT has a Return On Assets of -1.06%. This is in the better half of the industry: AORT outperforms 71.51% of its industry peers.
AORT has a better Return On Equity (-2.08%) than 71.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.28%, AORT is in the better half of the industry, outperforming 68.82% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-1.06%
ROE	-2.08%
ROIC	2.28%

ROA(3y)-2.68%

ROA(5y)-2.4%

ROE(3y)-7.46%

ROE(5y)-6.47%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

AORT's Operating Margin of 5.26% is fine compared to the rest of the industry. AORT outperforms 69.89% of its industry peers.
AORT's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 64.50%, AORT is doing good in the industry, outperforming 67.74% of the companies in the same industry.
In the last couple of years the Gross Margin of AORT has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	5.26%
PM (TTM)	N/A
GM	64.5%

OM growth 3Y34.21%

OM growth 5Y6.88%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-1.05%

GM growth 5Y-0.68%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AORT is destroying value.
Compared to 1 year ago, AORT has more shares outstanding
Compared to 5 years ago, AORT has more shares outstanding
Compared to 1 year ago, AORT has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.85 indicates that AORT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.85, AORT is doing good in the industry, outperforming 72.58% of the companies in the same industry.
AORT has a debt to FCF ratio of 12.48. This is a negative value and a sign of low solvency as AORT would need 12.48 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.48, AORT is in the better half of the industry, outperforming 71.51% of the companies in the same industry.
AORT has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
AORT has a Debt to Equity ratio of 0.50. This is comparable to the rest of the industry: AORT outperforms 41.94% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.5
Debt/FCF	12.48
Altman-Z	3.85

ROIC/WACC0.23

WACC10.11%

2.3 Liquidity

AORT has a Current Ratio of 3.93. This indicates that AORT is financially healthy and has no problem in meeting its short term obligations.
AORT's Current ratio of 3.93 is fine compared to the rest of the industry. AORT outperforms 68.82% of its industry peers.
AORT has a Quick Ratio of 2.88. This indicates that AORT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.88, AORT is in the better half of the industry, outperforming 65.59% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	3.93
Quick Ratio	2.88

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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 AORT have decreased strongly by -85.71% in the last year.
The Revenue has grown by 9.81% in the past year. This is quite good.
AORT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.06% yearly.

EPS 1Y (TTM)-85.71%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%220%

Revenue 1Y (TTM)9.81%

Revenue growth 3Y9.14%

Revenue growth 5Y7.06%

Sales Q2Q%16.3%

3.2 Future

AORT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.17% yearly.
Based on estimates for the next years, AORT will show a quite strong growth in Revenue. The Revenue will grow by 11.94% on average per year.

EPS Next Y144.67%

EPS Next 2Y74.78%

EPS Next 3Y51.8%

EPS Next 5Y46.17%

Revenue Next Year12.7%

Revenue Next 2Y11.83%

Revenue Next 3Y11.75%

Revenue Next 5Y11.94%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

AORT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 96.83, which means the current valuation is very expensive for AORT.
66.13% of the companies in the same industry are more expensive than AORT, based on the Price/Forward Earnings ratio.
AORT is valuated expensively when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	96.83

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AORT is valued a bit cheaper than the industry average as 66.13% of the companies are valued more expensively.
AORT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AORT is cheaper than 69.35% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	118.89
EV/EBITDA	49.61

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AORT's earnings are expected to grow with 51.80% in the coming years.