We assign a fundamental rating of 5 out of 10 to ABCM. ABCM was compared to 525 industry peers in the Biotechnology industry. Both the profitability and the financial health of ABCM get a neutral evaluation. Nothing too spectacular is happening here. ABCM is not priced too expensively while it is growing strongly. Keep and eye on this one!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ABCM was profitable.
In the past year ABCM had a positive cash flow from operations.

1.2 Ratios

ABCM's Return On Assets of 0.64% is amongst the best of the industry. ABCM outperforms 93.86% of its industry peers.
Looking at the Return On Equity, with a value of 0.93%, ABCM belongs to the top of the industry, outperforming 93.86% of the companies in the same industry.
With an excellent Return On Invested Capital value of 1.98%, ABCM belongs to the best of the industry, outperforming 94.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ABCM is significantly below the industry average of 18.07%.
The last Return On Invested Capital (1.98%) for ABCM is well below the 3 year average (6.00%), which needs to be investigated, but indicates that ABCM had better years and this may not be a problem.

		Industry Rank	Sector Rank
ROA	0.64%
ROE	0.93%
ROIC	1.98%

ROA(3y)4.53%

ROA(5y)8.06%

ROE(3y)5.58%

ROE(5y)9.64%

ROIC(3y)6%

ROIC(5y)8.74%

1.3 Margins

ABCM has a Profit Margin of 1.94%. This is amongst the best in the industry. ABCM outperforms 94.86% of its industry peers.
In the last couple of years the Profit Margin of ABCM has declined.
ABCM's Operating Margin of 8.70% is amongst the best of the industry. ABCM outperforms 95.36% of its industry peers.
In the last couple of years the Operating Margin of ABCM has declined.
ABCM has a Gross Margin of 72.69%. This is amongst the best in the industry. ABCM outperforms 83.58% of its industry peers.
In the last couple of years the Gross Margin of ABCM has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	8.7%
PM (TTM)	1.94%
GM	72.69%

OM growth 3Y-28.84%

OM growth 5Y-15.57%

PM growth 3Y-41.13%

PM growth 5Y-24.24%

GM growth 3Y0.59%

GM growth 5Y0.27%

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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 ABCM is destroying value.
The number of shares outstanding for ABCM has been increased compared to 1 year ago.
Compared to 1 year ago, ABCM has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 8.64 indicates that ABCM is not in any danger for bankruptcy at the moment.
The Altman-Z score of ABCM (8.64) is better than 85.41% of its industry peers.
ABCM has a debt to FCF ratio of 19.99. This is a negative value and a sign of low solvency as ABCM would need 19.99 years to pay back of all of its debts.
ABCM has a Debt to FCF ratio of 19.99. This is amongst the best in the industry. ABCM outperforms 94.03% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that ABCM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.30, ABCM is not doing good in the industry: 71.81% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	0.3
Debt/FCF	19.99
Altman-Z	8.64

ROIC/WACC0.22

WACC8.89%

2.3 Liquidity

A Current Ratio of 1.26 indicates that ABCM should not have too much problems paying its short term obligations.
The Current ratio of ABCM (1.26) is worse than 86.73% of its industry peers.
A Quick Ratio of 0.98 indicates that ABCM may have some problems paying its short term obligations.
With a Quick ratio value of 0.98, ABCM is not doing good in the industry: 88.56% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.26
Quick Ratio	0.98

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

ABCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 402.64%, which is quite impressive.
Measured over the past years, ABCM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.30% on average per year.
ABCM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.70%.
Measured over the past years, ABCM shows a quite strong growth in Revenue. The Revenue has been growing by 11.64% on average per year.

EPS 1Y (TTM)402.64%

EPS 3Y-38.1%

EPS 5Y-17.3%

EPS Q2Q%191.67%

Revenue 1Y (TTM)17.7%

Revenue growth 3Y8.48%

Revenue growth 5Y11.64%

Sales Q2Q%23.3%

3.2 Future

ABCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.12% yearly.
Based on estimates for the next years, ABCM will show a quite strong growth in Revenue. The Revenue will grow by 11.28% on average per year.

EPS Next Y125.95%

EPS Next 2Y68.04%

EPS Next 3Y52.49%

EPS Next 5Y40.12%

Revenue Next Year24.37%

Revenue Next 2Y18.92%

Revenue Next 3Y16.75%

Revenue Next 5Y11.28%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

ABCM is valuated quite expensively with a Price/Earnings ratio of 44.43.
Based on the Price/Earnings ratio, ABCM is valued cheaply inside the industry as 94.69% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ABCM to the average of the S&P500 Index (28.87), we can say ABCM is valued expensively.
A Price/Forward Earnings ratio of 49.32 indicates a quite expensive valuation of ABCM.
ABCM's Price/Forward Earnings ratio is rather cheap when compared to the industry. ABCM is cheaper than 94.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.96. ABCM is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	44.43
Fwd PE	49.32

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ABCM is valued cheaper than 94.20% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ABCM is valued cheaply inside the industry as 93.86% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	374.67
EV/EBITDA	55.61

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.
The decent profitability rating of ABCM may justify a higher PE ratio.
A more expensive valuation may be justified as ABCM's earnings are expected to grow with 52.49% in the coming years.