ACCURAY INC (ARAY) Stock Fundamental Analysis
NASDAQ:ARAY - Nasdaq - US0043971052 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ARAY. ARAY was compared to 189 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ARAY had negative earnings in the past year.
ARAY had a positive operating cash flow in the past year.
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
ARAY has a better Return On Assets (0.14%) than 73.02% 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 74.60% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.93%, ARAY is in the better half of the industry, outperforming 71.96% of the companies in the same industry.
ARAY had an Average Return On Invested Capital over the past 3 years of 1.33%. This is significantly below the industry average of 7.87%.
The 3 year average ROIC (1.33%) for ARAY is below the current ROIC(2.93%), indicating increased profibility in the last year.
| 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 73.55% of its industry peers.
With a decent Operating Margin value of 2.24%, ARAY is doing good in the industry, outperforming 67.20% of the companies in the same industry.
In the last couple of years the Operating Margin of ARAY has grown nicely.
ARAY has a worse Gross Margin (31.48%) than 74.60% of its industry peers.
In the last couple of years the Gross Margin of ARAY has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ARAY is destroying value.
Compared to 1 year ago, ARAY has more shares outstanding
ARAY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ARAY has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.07, we must say that ARAY is in the distress zone and has some risk of bankruptcy.
ARAY has a Altman-Z score (0.07) which is in line with 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.
ARAY has a better Debt to FCF ratio (9.13) than 75.66% of its industry peers.
A Debt/Equity ratio of 3.35 is on the high side and indicates that ARAY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.35, ARAY is doing worse than 87.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.35 | ||
| Debt/FCF | 9.13 | ||
| Altman-Z | 0.07 |
ROIC/WACC0.43
WACC6.88%
2.3 Liquidity
A Current Ratio of 1.64 indicates that ARAY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.64, ARAY is doing worse than 73.55% 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.
ARAY's Quick ratio of 0.92 is on the low side compared to the rest of the industry. ARAY is outperformed by 80.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 100.00% over the past year.
Looking at the last year, ARAY shows a quite strong growth in Revenue. The Revenue has grown by 8.05% in the last year.
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
ARAY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.27% yearly.
Based on estimates for the next years, ARAY will show a small growth in Revenue. The Revenue will grow by 1.24% on average per year.
EPS Next Y95.22%
EPS Next 2Y46.95%
EPS Next 3Y39.27%
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
ARAY is valuated quite expensively with a Price/Forward Earnings ratio of 61.57.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ARAY indicates a somewhat cheap valuation: ARAY is cheaper than 65.08% of the companies listed in the same industry.
ARAY is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 61.57 |
4.2 Price Multiples
78.84% of the companies in the same industry are more expensive than ARAY, based on the Enterprise Value to EBITDA ratio.
ARAY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARAY is cheaper than 96.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.48 | ||
| EV/EBITDA | 15.68 |
4.3 Compensation for Growth
ARAY's 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 ARAY's earnings are expected to grow with 39.27% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46.95%
EPS Next 3Y39.27%
5. Dividend
5.1 Amount
No dividends for ARAY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.57
-0.01 (-0.63%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners61.15%
Inst Owner Change5.81%
Ins Owners2.15%
Ins Owner Change-2.52%
Market Cap161.44M
Analysts86
Price Target5.36 (241.4%)
Short Float %4.16%
Short Ratio6.87
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)-14.29%
PT rev (3m)-14.29%
EPS NQ rev (1m)-112%
EPS NQ rev (3m)-112%
EPS NY rev (1m)-50%
EPS NY rev (3m)-50%
Revenue NQ rev (1m)-16.96%
Revenue NQ rev (3m)-16.96%
Revenue NY rev (1m)-2.9%
Revenue NY rev (3m)-2.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 61.57 | ||
| P/S | 0.35 | ||
| P/FCF | 8.48 | ||
| P/OCF | 7.19 | ||
| P/B | 3.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.68 |
EPS(TTM)0
EYN/A
EPS(NY)0.03
Fwd EY1.62%
FCF(TTM)0.19
FCFY11.79%
OCF(TTM)0.22
OCFY13.91%
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 | 0.07 |
F-Score7
WACC6.88%
ROIC/WACC0.43
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 2Y46.95%
EPS Next 3Y39.27%
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 Year8674.21%
EBIT Next 3Y444.8%
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