ACCURAY INC (ARAY) Stock Fundamental Analysis
NASDAQ:ARAY - Nasdaq - US0043971052 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to ARAY. ARAY was compared to 187 industry peers in the Health Care Equipment & Supplies industry. While ARAY is still in line with the averages on profitability rating, there are concerns on its financial health. ARAY is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ARAY has reported negative net income.
In the past year ARAY had a positive cash flow from operations.
ARAY had negative earnings in 4 of the past 5 years.
In multiple years ARAY reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of ARAY (0.14%) is better than 71.66% of its industry peers.
Looking at the Return On Equity, with a value of 1.36%, ARAY is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
ARAY has a Return On Invested Capital of 2.93%. This is in the better half of the industry: ARAY outperforms 70.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ARAY is significantly below the industry average of 8.28%.
The last Return On Invested Capital (2.93%) for ARAY is above the 3 year average (1.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 1.36% | ||
| ROIC | 2.93% |
ROA(3y)-2.13%
ROA(5y)-1.38%
ROE(3y)-20.59%
ROE(5y)-12.99%
ROIC(3y)1.33%
ROIC(5y)2.66%
1.3 Margins
ARAY has a better Profit Margin (0.14%) than 72.19% of its industry peers.
Looking at the Operating Margin, with a value of 2.24%, ARAY is in the better half of the industry, outperforming 66.84% of the companies in the same industry.
In the last couple of years the Operating Margin of ARAY has grown nicely.
ARAY's Gross Margin of 31.48% is on the low side compared to the rest of the industry. ARAY is outperformed by 74.33% of its industry peers.
ARAY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.24% | ||
| PM (TTM) | 0.14% | ||
| GM | 31.48% |
OM growth 3Y-50.12%
OM growth 5Y37.15%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.31%
GM growth 5Y-3.77%
2. Health
2.1 Basic Checks
ARAY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ARAY has more shares outstanding
Compared to 5 years ago, ARAY has more shares outstanding
ARAY has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.04, we must say that ARAY is in the distress zone and has some risk of bankruptcy.
ARAY has a Altman-Z score of 0.04. This is comparable to the rest of the industry: ARAY outperforms 44.92% of its industry peers.
The Debt to FCF ratio of ARAY is 9.13, which is on the high side as it means it would take ARAY, 9.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ARAY (9.13) is better than 74.87% of its industry peers.
ARAY has a Debt/Equity ratio of 3.35. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ARAY (3.35) is worse than 89.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 9.13 | ||
| Altman-Z | 0.04 |
ROIC/WACC0.45
WACC6.55%
2.3 Liquidity
ARAY has a Current Ratio of 1.64. This is a normal value and indicates that ARAY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.64, ARAY is doing worse than 72.73% of the companies in the same industry.
ARAY has a Quick Ratio of 1.64. This is a bad value and indicates that ARAY is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.92, ARAY is not doing good in the industry: 80.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
ARAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, which is quite impressive.
The Revenue has grown by 8.05% in the past year. This is quite good.
ARAY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.29% yearly.
EPS 1Y (TTM)100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%83.33%
Revenue 1Y (TTM)8.05%
Revenue growth 3Y4.06%
Revenue growth 5Y1.29%
Sales Q2Q%11.98%
3.2 Future
Based on estimates for the next years, ARAY will show a very strong growth in Earnings Per Share. The EPS will grow by 31.13% on average per year.
The Revenue is expected to grow by 1.24% on average over the next years.
EPS Next Y95.22%
EPS Next 2Y14.66%
EPS Next 3Y31.13%
EPS Next 5YN/A
Revenue Next Year4.84%
Revenue Next 2Y2.43%
Revenue Next 3Y1.24%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Forward Price/Earnings Ratio is negative for ARAY. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
ARAY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ARAY is cheaper than 80.21% of the companies in the same industry.
98.93% of the companies in the same industry are more expensive than ARAY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 14.01 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ARAY's earnings are expected to grow with 31.13% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.66%
EPS Next 3Y31.13%
5. Dividend
5.1 Amount
ARAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.32
+0.01 (+0.76%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners62.81%
Inst Owner Change-2.63%
Ins Owners1.89%
Ins Owner Change-0.06%
Market Cap135.97M
Analysts86
Price Target4.34 (228.79%)
Short Float %2.82%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)129.41%
Min EPS beat(2)80.39%
Max EPS beat(2)178.43%
EPS beat(4)4
Avg EPS beat(4)72.77%
Min EPS beat(4)6.95%
Max EPS beat(4)178.43%
EPS beat(8)5
Avg EPS beat(8)-66.07%
EPS beat(12)8
Avg EPS beat(12)-37.55%
EPS beat(16)11
Avg EPS beat(16)-21.51%
Revenue beat(2)2
Avg Revenue beat(2)6.28%
Min Revenue beat(2)3.2%
Max Revenue beat(2)9.35%
Revenue beat(4)4
Avg Revenue beat(4)5.74%
Min Revenue beat(4)2.05%
Max Revenue beat(4)9.35%
Revenue beat(8)5
Avg Revenue beat(8)1.04%
Revenue beat(12)8
Avg Revenue beat(12)1.33%
Revenue beat(16)11
Avg Revenue beat(16)2.63%
PT rev (1m)0%
PT rev (3m)-30.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-72%
EPS NY rev (1m)0%
EPS NY rev (3m)-50%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.29 | ||
| P/FCF | 7.14 | ||
| P/OCF | 6.06 | ||
| P/B | 2.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.01 |
EPS(TTM)0
EYN/A
EPS(NY)-0.11
Fwd EYN/A
FCF(TTM)0.18
FCFY14%
OCF(TTM)0.22
OCFY16.51%
SpS4.52
BVpS0.48
TBVpS-0.22
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 1.36% | ||
| ROCE | 3.71% | ||
| ROIC | 2.93% | ||
| ROICexc | 4.06% | ||
| ROICexgc | 6.27% | ||
| OM | 2.24% | ||
| PM (TTM) | 0.14% | ||
| GM | 31.48% | ||
| FCFM | 4.09% |
ROA(3y)-2.13%
ROA(5y)-1.38%
ROE(3y)-20.59%
ROE(5y)-12.99%
ROIC(3y)1.33%
ROIC(5y)2.66%
ROICexc(3y)1.95%
ROICexc(5y)4.2%
ROICexgc(3y)2.85%
ROICexgc(5y)6.2%
ROCE(3y)1.69%
ROCE(5y)3.37%
ROICexcg growth 3Y-52.47%
ROICexcg growth 5Y31.25%
ROICexc growth 3Y-51.1%
ROICexc growth 5Y33.71%
OM growth 3Y-50.12%
OM growth 5Y37.15%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.31%
GM growth 5Y-3.77%
F-Score7
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 9.13 | ||
| Debt/EBITDA | 10.08 | ||
| Cap/Depr | 56.4% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 136.22% | ||
| Profit Quality | 2828.08% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 0.04 |
F-Score7
WACC6.55%
ROIC/WACC0.45
Cap/Depr(3y)142.19%
Cap/Depr(5y)102.47%
Cap/Sales(3y)1.58%
Cap/Sales(5y)1.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)100%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%83.33%
EPS Next Y95.22%
EPS Next 2Y14.66%
EPS Next 3Y31.13%
EPS Next 5YN/A
Revenue 1Y (TTM)8.05%
Revenue growth 3Y4.06%
Revenue growth 5Y1.29%
Sales Q2Q%11.98%
Revenue Next Year4.84%
Revenue Next 2Y2.43%
Revenue Next 3Y1.24%
Revenue Next 5YN/A
EBIT growth 1Y346.62%
EBIT growth 3Y-48.1%
EBIT growth 5Y38.92%
EBIT Next Year8606.85%
EBIT Next 3Y379.72%
EBIT Next 5YN/A
FCF growth 1Y572.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1011.39%
OCF growth 3YN/A
OCF growth 5YN/A