We assign a fundamental rating of 5 out of 10 to AORT. AORT was compared to 184 industry peers in the Health Care Equipment & Supplies industry. AORT has an average financial health and profitability rating. AORT is not valued too expensively and it also shows a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AORT has reported negative net income.
AORT had a positive operating cash flow in the past year.
AORT had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: AORT reported negative operating cash flow in multiple years.

1.2 Ratios

With a decent Return On Assets value of -1.06%, AORT is doing good in the industry, outperforming 71.51% of the companies in the same industry.
With a decent Return On Equity value of -2.08%, AORT is doing good in the industry, outperforming 71.51% of the companies in the same industry.
AORT has a Return On Invested Capital of 2.28%. This is in the better half of the industry: AORT outperforms 68.82% of its industry peers.

		Industry Rank	Sector Rank
ROA	-1.06%
ROE	-2.08%
ROIC	2.28%

ROA(3y)-2.68%

ROA(5y)-2.4%

ROE(3y)-7.46%

ROE(5y)-6.47%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

The Operating Margin of AORT (5.26%) is better than 69.89% of its industry peers.
In the last couple of years the Operating Margin of AORT has grown nicely.
With a decent Gross Margin value of 64.50%, AORT is doing good in the industry, outperforming 67.74% of the companies in the same industry.
In the last couple of years the Gross Margin of AORT has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	5.26%
PM (TTM)	N/A
GM	64.5%

OM growth 3Y34.21%

OM growth 5Y6.88%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-1.05%

GM growth 5Y-0.68%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AORT is destroying value.
AORT has more shares outstanding than it did 1 year ago.
AORT has more shares outstanding than it did 5 years ago.
AORT has a worse debt/assets ratio than last year.

2.2 Solvency

AORT has an Altman-Z score of 3.76. This indicates that AORT is financially healthy and has little risk of bankruptcy at the moment.
AORT has a better Altman-Z score (3.76) than 71.51% of its industry peers.
The Debt to FCF ratio of AORT is 12.48, which is on the high side as it means it would take AORT, 12.48 years of fcf income to pay off all of its debts.
AORT's Debt to FCF ratio of 12.48 is fine compared to the rest of the industry. AORT outperforms 71.51% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that AORT is not too dependend on debt financing.
AORT has a Debt to Equity ratio (0.50) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.5
Debt/FCF	12.48
Altman-Z	3.76

ROIC/WACC0.23

WACC10.09%

2.3 Liquidity

A Current Ratio of 3.93 indicates that AORT has no problem at all paying its short term obligations.
AORT has a Current ratio of 3.93. This is in the better half of the industry: AORT outperforms 68.82% of its industry peers.
AORT has a Quick Ratio of 2.88. This indicates that AORT is financially healthy and has no problem in meeting its short term obligations.
AORT has a Quick ratio of 2.88. This is in the better half of the industry: AORT outperforms 65.59% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.93
Quick Ratio	2.88

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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 for AORT have decreased strongly by -85.71% in the last year.
Looking at the last year, AORT shows a quite strong growth in Revenue. The Revenue has grown by 9.81% in the last year.
AORT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.06% yearly.

EPS 1Y (TTM)-85.71%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%220%

Revenue 1Y (TTM)9.81%

Revenue growth 3Y9.14%

Revenue growth 5Y7.06%

Sales Q2Q%16.3%

3.2 Future

Based on estimates for the next years, AORT will show a very strong growth in Earnings Per Share. The EPS will grow by 46.17% on average per year.
Based on estimates for the next years, AORT will show a quite strong growth in Revenue. The Revenue will grow by 11.94% on average per year.

EPS Next Y146.65%

EPS Next 2Y74.67%

EPS Next 3Y51.54%

EPS Next 5Y46.17%

Revenue Next Year12.7%

Revenue Next 2Y11.83%

Revenue Next 3Y11.75%

Revenue Next 5Y11.94%

3.3 Evolution

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

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for AORT. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 95.21, the valuation of AORT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AORT indicates a somewhat cheap valuation: AORT is cheaper than 66.13% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. AORT is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	95.21

4.2 Price Multiples

66.13% of the companies in the same industry are more expensive than AORT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AORT indicates a somewhat cheap valuation: AORT is cheaper than 69.35% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	116.45
EV/EBITDA	48.26

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.
A more expensive valuation may be justified as AORT's earnings are expected to grow with 51.54% in the coming years.