ABIOMED INC (ABMD)
US0036541003 - Common Stock
We assign a fundamental rating of 7 out of 10 to ABMD. ABMD was compared to 192 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 has a correct valuation and a medium growth rate. This makes ABMD very considerable for quality investing!
1. Profitability
1.1 Basic Checks
ABMD had positive earnings in the past year.
ABMD had a positive operating cash flow in the past year.
ABMD had positive earnings in each of the past 5 years.
In the past 5 years ABMD always reported a positive cash flow from operatings.
1.2 Ratios
ABMD has a better Return On Assets (15.72%) than 94.52% of its industry peers.
ABMD has a Return On Equity of 17.32%. This is amongst the best in the industry. ABMD outperforms 93.61% of its industry peers.
ABMD has a better Return On Invested Capital (12.19%) than 89.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ABMD is significantly above the industry average of 8.50%.
The 3 year average ROIC (29.16%) for ABMD is well above the current ROIC(12.19%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector 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
1.3 Margins
ABMD has a better Profit Margin (24.84%) than 95.43% of its industry peers.
ABMD's Profit Margin has improved in the last couple of years.
ABMD has a better Operating Margin (23.66%) than 93.61% of its industry peers.
ABMD's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ABMD is creating value.
Compared to 1 year ago, ABMD has more shares outstanding
The number of shares outstanding for ABMD has been increased compared to 5 years ago.
ABMD has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 68.47 indicates that ABMD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 68.47, ABMD belongs to the top 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 68.47 |
ROIC/WACC1.34
WACC9.07%
2.3 Liquidity
A Current Ratio of 7.93 indicates that ABMD has no problem at all paying its short term obligations.
The Current ratio of ABMD (7.93) is better than 83.11% of its industry peers.
ABMD has a Quick Ratio of 7.17. This indicates that ABMD is financially healthy and has no problem in meeting 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.93 | ||
| Quick Ratio | 7.17 |
3. Growth
3.1 Past
ABMD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.78%.
Measured over the past years, ABMD shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.92% on average per year.
The Revenue has grown by 10.32% in the past year. This is quite good.
The Revenue has been growing by 18.30% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.78%
EPS 3Y-2.48%
EPS 5Y30.92%
EPS growth Q2Q26.21%
Revenue 1Y (TTM)10.32%
Revenue growth 3Y10.27%
Revenue growth 5Y18.3%
Revenue growth Q2Q7.16%
3.2 Future
Based on estimates for the next years, ABMD will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.71% on average per year.
The Revenue is expected to grow by 11.13% on average over the next years. This is quite good.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 78.72, ABMD can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ABMD indicates a somewhat cheap valuation: ABMD is cheaper than 71.69% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ABMD to the average of the S&P500 Index (24.55), we can say ABMD is valued expensively.
A Price/Forward Earnings ratio of 66.96 indicates a quite expensive valuation of 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.
ABMD's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.72 | ||
| Fwd PE | 66.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ABMD is valued a bit cheaper than the industry average as 69.41% of the companies are valued more expensively.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.09 | ||
| EV/EBITDA | 55.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ABMD does not grow enough to justify the current Price/Earnings ratio.
ABMD has an outstanding profitability rating, which 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%
5. Dividend
5.1 Amount
ABMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ABIOMED INC
NASDAQ:ABMD (12/21/2022, 7:15:55 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.72 | ||
| Fwd PE | 66.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)20.54
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.72% | ||
| ROE | 17.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.66% | ||
| PM (TTM) | 24.84% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 7.93 | ||
| Quick Ratio | 7.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-3.78%
EPS 3Y-2.48%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.32%
Revenue growth 3Y10.27%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y