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ABIOMED INC (ABMD) Stock Fundamental Analysis

NASDAQ:ABMD - Nasdaq - US0036541003 - Common Stock - Currency: USD

381.02  +0.23 (+0.06%)

After market: 381.3 +0.28 (+0.07%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to ABMD. ABMD was compared to 188 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 would make ABMD suitable for quality investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

ABMD had positive earnings in the past year.
In the past year ABMD had a positive cash flow from operations.
Each year in the past 5 years ABMD has been profitable.
ABMD had a positive operating cash flow in each of the past 5 years.
ABMD Yearly Net Income VS EBIT VS OCF VS FCFABMD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

1.2 Ratios

Looking at the Return On Assets, with a value of 15.72%, ABMD belongs to the top of the industry, outperforming 94.52% of the companies in the same industry.
ABMD's Return On Equity of 17.32% is amongst the best of the industry. ABMD outperforms 93.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.19%, ABMD belongs to the top of the industry, outperforming 89.95% of the companies in the same industry.
ABMD had an Average Return On Invested Capital over the past 3 years of 29.16%. This is significantly above the industry average of 7.89%.
The last Return On Invested Capital (12.19%) for ABMD is well below the 3 year average (29.16%), which needs to be investigated, but indicates that ABMD had better years and this may not be a problem.
Industry RankSector 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
ABMD Yearly ROA, ROE, ROICABMD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 10 20 30

1.3 Margins

The Profit Margin of ABMD (24.84%) is better than 95.43% of its industry peers.
ABMD's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.66%, ABMD belongs to the best of the industry, outperforming 93.61% of the companies in the same industry.
In the last couple of years the Operating Margin of ABMD has grown nicely.
Industry RankSector 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
ABMD Yearly Profit, Operating, Gross MarginsABMD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 20 40 60 80

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9

2. Health

2.1 Basic Checks

ABMD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
ABMD Yearly Shares OutstandingABMD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M 40M
ABMD Yearly Total Debt VS Total AssetsABMD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

2.2 Solvency

ABMD has an Altman-Z score of 68.47. This indicates that ABMD is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 68.47, ABMD belongs to the best 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 68.47
ROIC/WACC1.34
WACC9.07%
ABMD Yearly LT Debt VS Equity VS FCFABMD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 7.93 indicates that ABMD has no problem at all paying 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.
A Quick Ratio of 7.17 indicates that ABMD has no problem at all paying its short term obligations.
ABMD's Quick ratio of 7.17 is amongst the best of the industry. ABMD outperforms 82.19% of its industry peers.
Industry RankSector Rank
Current Ratio 7.93
Quick Ratio 7.17
ABMD Yearly Current Assets VS Current LiabilitesABMD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M

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6

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
ABMD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.32%.
ABMD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.30% yearly.
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

ABMD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.71% yearly.
Based on estimates for the next years, ABMD will show a quite strong growth in Revenue. The Revenue will grow by 11.13% on average per year.
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
ABMD Yearly Revenue VS EstimatesABMD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
ABMD Yearly EPS VS EstimatesABMD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8

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4

4. Valuation

4.1 Price/Earnings Ratio

ABMD is valuated quite expensively with a Price/Earnings ratio of 78.72.
Based on the Price/Earnings ratio, ABMD is valued a bit cheaper than 71.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.52, ABMD is valued quite expensively.
The Price/Forward Earnings ratio is 66.96, which means the current valuation is very expensive for ABMD.
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.
When comparing the Price/Forward Earnings ratio of ABMD to the average of the S&P500 Index (22.25), we can say ABMD is valued expensively.
Industry RankSector Rank
PE 78.72
Fwd PE 66.96
ABMD Price Earnings VS Forward Price EarningsABMD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ABMD indicates a somewhat cheap valuation: ABMD is cheaper than 69.41% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ABMD is valued cheaply inside the industry as 80.82% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 79.09
EV/EBITDA 55.82
ABMD Per share dataABMD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ABMD 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.
PEG (NY)20.54
PEG (5Y)2.55
EPS Next 2Y9.68%
EPS Next 3Y14%

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0

5. Dividend

5.1 Amount

ABMD does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ABIOMED INC

NASDAQ:ABMD (12/21/2022, 8:15:55 PM)

After market: 381.3 +0.28 (+0.07%)

381.02

+0.23 (+0.06%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)11-01 2022-11-01/bmo
Earnings (Next)02-01 2023-02-01
Inst Owners0%
Inst Owner Change0%
Ins Owners1.66%
Ins Owner Change0%
Market Cap17.18B
Analysts70
Price Target375.36 (-1.49%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.37%
Min EPS beat(2)-5.24%
Max EPS beat(2)15.98%
EPS beat(4)3
Avg EPS beat(4)8.26%
Min EPS beat(4)-5.24%
Max EPS beat(4)15.98%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-14.37%
Min Revenue beat(2)-16.89%
Max Revenue beat(2)-11.85%
Revenue beat(4)0
Avg Revenue beat(4)-11.39%
Min Revenue beat(4)-16.89%
Max Revenue beat(4)-6.39%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)19.09%
PT rev (3m)N/A
EPS NQ rev (1m)4.13%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.46%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-3.26%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 78.72
Fwd PE 66.96
P/S 16
P/FCF 79.09
P/OCF 68.45
P/B 11.16
P/tB 12.15
EV/EBITDA 55.82
EPS(TTM)4.84
EY1.27%
EPS(NY)5.69
Fwd EY1.49%
FCF(TTM)4.82
FCFY1.26%
OCF(TTM)5.57
OCFY1.46%
SpS23.82
BVpS34.15
TBVpS31.36
PEG (NY)20.54
PEG (5Y)2.55
Profitability
Industry RankSector Rank
ROA 15.72%
ROE 17.32%
ROCE N/A
ROIC 12.19%
ROICexc 25.66%
ROICexgc 30.76%
OM 23.66%
PM (TTM) 24.84%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.16%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-10.63%
ROICexcg growth 5Y-2.2%
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score6
Asset Turnover0.63
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 122.5%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 81.43%
Current Ratio 7.93
Quick Ratio 7.17
Altman-Z 68.47
F-Score6
WACC9.07%
ROIC/WACC1.34
Cap/Depr(3y)188.19%
Cap/Depr(5y)276.96%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)138.14%
Profit Quality(5y)123.31%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.78%
EPS 3Y-2.48%
EPS 5Y30.92%
EPS Q2Q%26.21%
EPS Next Y3.83%
EPS Next 2Y9.68%
EPS Next 3Y14%
EPS Next 5Y15.71%
Revenue 1Y (TTM)10.32%
Revenue growth 3Y10.27%
Revenue growth 5Y18.3%
Sales Q2Q%7.16%
Revenue Next Year10.29%
Revenue Next 2Y12.97%
Revenue Next 3Y13.62%
Revenue Next 5Y11.13%
EBIT growth 1Y-2.58%
EBIT growth 3Y4.52%
EBIT growth 5Y23.29%
EBIT Next Year13.8%
EBIT Next 3Y20.3%
EBIT Next 5Y16.96%
FCF growth 1Y-11.7%
FCF growth 3Y6.24%
FCF growth 5Y31%
OCF growth 1Y-11.94%
OCF growth 3Y4.21%
OCF growth 5Y19.91%