We assign a fundamental rating of 4 out of 10 to AZTA. AZTA was compared to 58 industry peers in the Life Sciences Tools & Services industry. No worries on liquidiy or solvency for AZTA as it has an excellent financial health rating, but there are worries on the profitability. AZTA is quite expensive at the moment. It does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

AZTA had positive earnings in the past year.
AZTA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AZTA reported negative net income in multiple years.
Of the past 5 years AZTA 4 years had a positive operating cash flow.

1.2 Ratios

AZTA has a Return On Assets (-2.71%) which is in line with its industry peers.
AZTA's Return On Equity of -3.23% is in line compared to the rest of the industry. AZTA outperforms 58.62% of its industry peers.

		Industry Rank	Sector Rank
ROA	-2.71%
ROE	-3.23%
ROIC	N/A

ROA(3y)-3.69%

ROA(5y)10.48%

ROE(3y)-4.38%

ROE(5y)11.73%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

AZTA has a Gross Margin (45.52%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of AZTA has remained more or less at the same level.
AZTA does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	45.52%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-0.36%

GM growth 5Y0.54%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

AZTA does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for AZTA has been increased compared to 1 year ago.
The number of shares outstanding for AZTA has been reduced compared to 5 years ago.
The debt/assets ratio for AZTA has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 4.72 indicates that AZTA is not in any danger for bankruptcy at the moment.
AZTA's Altman-Z score of 4.72 is fine compared to the rest of the industry. AZTA outperforms 79.31% of its industry peers.
The Debt to FCF ratio of AZTA is 0.04, which is an excellent value as it means it would take AZTA, only 0.04 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.04, AZTA belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
AZTA has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
AZTA has a better Debt to Equity ratio (0.00) than 75.86% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0.04
Altman-Z	4.72

ROIC/WACCN/A

WACC11.08%

2.3 Liquidity

A Current Ratio of 2.98 indicates that AZTA has no problem at all paying its short term obligations.
AZTA's Current ratio of 2.98 is in line compared to the rest of the industry. AZTA outperforms 53.45% of its industry peers.
AZTA has a Quick Ratio of 2.66. This indicates that AZTA is financially healthy and has no problem in meeting its short term obligations.
AZTA has a Quick ratio of 2.66. This is comparable to the rest of the industry: AZTA outperforms 55.17% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.98
Quick Ratio	2.66

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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 has grown by an impressive 29.27% over the past year.
The earnings per share for AZTA have been decreasing by -16.04% on average. This is quite bad
AZTA shows a decrease in Revenue. In the last year, the revenue decreased by -9.52%.
AZTA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.86% yearly.

EPS 1Y (TTM)29.27%

EPS 3Y0.64%

EPS 5Y-16.04%

EPS Q2Q%16.67%

Revenue 1Y (TTM)-9.52%

Revenue growth 3Y2.25%

Revenue growth 5Y8.86%

Sales Q2Q%-6.39%

3.2 Future

Based on estimates for the next years, AZTA will show a very strong growth in Earnings Per Share. The EPS will grow by 27.49% on average per year.
The Revenue is expected to grow by 5.37% on average over the next years.

EPS Next Y51.12%

EPS Next 2Y39.62%

EPS Next 3Y33.99%

EPS Next 5Y27.49%

Revenue Next Year4.59%

Revenue Next 2Y4.91%

Revenue Next 3Y5.2%

Revenue Next 5Y5.37%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 73.64 indicates a quite expensive valuation of AZTA.
The rest of the industry has a similar Price/Earnings ratio as AZTA.
AZTA is valuated expensively when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 48.73, the valuation of AZTA can be described as expensive.
60.34% of the companies in the same industry are more expensive than AZTA, based on the Price/Forward Earnings ratio.
AZTA's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.83.

		Industry Rank	Sector Rank
PE	73.64
Fwd PE	48.73

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AZTA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, AZTA is valued a bit cheaper than 62.07% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	46.7
EV/EBITDA	35.14

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AZTA's earnings are expected to grow with 33.99% in the coming years. This may justify a more expensive valuation.