SWAV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 184 industry peers in the Health Care Equipment & Supplies industry. SWAV has an excellent financial health rating, but there are some minor concerns on its profitability. SWAV is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make SWAV a good candidate for growth 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 SWAV was profitable.
In the past year SWAV had a positive cash flow from operations.
In multiple years SWAV reported negative net income over the last 5 years.
In multiple years SWAV reported negative operating cash flow during the last 5 years.

1.2 Ratios

SWAV has a Return On Assets of 9.95%. This is amongst the best in the industry. SWAV outperforms 93.23% of its industry peers.
The Return On Equity of SWAV (21.76%) is better than 95.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.81%, SWAV belongs to the top of the industry, outperforming 88.54% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	9.95%
ROE	21.76%
ROIC	8.81%

ROA(3y)13.4%

ROA(5y)-1.2%

ROE(3y)20.17%

ROE(5y)0.98%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

SWAV has a Profit Margin of 20.76%. This is amongst the best in the industry. SWAV outperforms 94.79% of its industry peers.
The Operating Margin of SWAV (20.52%) is better than 94.27% of its industry peers.
SWAV has a better Gross Margin (86.99%) than 96.35% of its industry peers.
In the last couple of years the Gross Margin of SWAV has grown nicely.

		Industry Rank	Sector Rank
OM	20.52%
PM (TTM)	20.76%
GM	86.99%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y7.99%

GM growth 5Y16.42%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

SWAV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SWAV has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, SWAV has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 10.26 indicates that SWAV is not in any danger for bankruptcy at the moment.
The Altman-Z score of SWAV (10.26) is better than 86.98% of its industry peers.
The Debt to FCF ratio of SWAV is 4.41, which is a neutral value as it means it would take SWAV, 4.41 years of fcf income to pay off all of its debts.
SWAV has a better Debt to FCF ratio (4.41) than 82.81% of its industry peers.
A Debt/Equity ratio of 0.97 indicates that SWAV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.97, SWAV is doing worse than 76.56% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.97
Debt/FCF	4.41
Altman-Z	10.26

ROIC/WACC0.94

WACC9.36%

2.3 Liquidity

SWAV has a Current Ratio of 13.81. This indicates that SWAV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 13.81, SWAV belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
A Quick Ratio of 12.61 indicates that SWAV has no problem at all paying its short term obligations.
SWAV has a Quick ratio of 12.61. This is amongst the best in the industry. SWAV outperforms 97.40% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	13.81
Quick Ratio	12.61

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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 nice 12.34% over the past year.
The Revenue has grown by 41.44% in the past year. This is a very strong growth!
The Revenue has been growing by 126.31% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)12.34%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%39.81%

Revenue 1Y (TTM)41.44%

Revenue growth 3Y120.84%

Revenue growth 5Y126.31%

Sales Q2Q%35.85%

3.2 Future

SWAV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.56% yearly.
The Revenue is expected to grow by 20.10% on average over the next years. This is a very strong growth

EPS Next Y36.11%

EPS Next 2Y27.65%

EPS Next 3Y24.15%

EPS Next 5Y17.56%

Revenue Next Year27.69%

Revenue Next 2Y24.82%

Revenue Next 3Y23.61%

Revenue Next 5Y20.1%

3.3 Evolution

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 78.21, the valuation of SWAV can be described as expensive.
SWAV's Price/Earnings ratio is a bit cheaper when compared to the industry. SWAV is cheaper than 67.19% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. SWAV is valued rather expensively when compared to this.
SWAV is valuated quite expensively with a Price/Forward Earnings ratio of 53.09.
SWAV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SWAV is cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, SWAV is valued quite expensively.

		Industry Rank	Sector Rank
PE	78.21
Fwd PE	53.09

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SWAV is valued a bit cheaper than 67.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SWAV is valued a bit cheaper than 75.00% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	75.65
EV/EBITDA	66.43

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SWAV does not grow enough to justify the current Price/Earnings ratio.
SWAV has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SWAV's earnings are expected to grow with 24.15% in the coming years.