Abiomed, Inc.
Abiomed, Inc. Fundamental Analysis
Abiomed, Inc. (ABMD) shows weak financial fundamentals with a PE ratio of 126.85, profit margin of 13.23%, and ROE of 9.64%. The company generates $1.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ABMD's fundamental strength across five key dimensions:
Efficiency Score
WeakABMD struggles to generate sufficient returns from assets.
Valuation Score
ModerateABMD shows balanced valuation metrics.
Growth Score
ModerateABMD shows steady but slowing expansion.
Financial Health Score
ExcellentABMD maintains a strong and stable balance sheet.
Profitability Score
WeakABMD struggles to sustain strong margins.
Key Financial Metrics
Is ABMD Expensive or Cheap?
P/E Ratio
ABMD trades at 126.85 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ABMD's PEG of 1.27 indicates fair valuation.
Price to Book
The market values Abiomed, Inc. at 11.52 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.60 times EBITDA. This signals the market has high growth expectations.
How Well Does ABMD Make Money?
Net Profit Margin
For every $100 in sales, Abiomed, Inc. keeps $13.23 as profit after all expenses.
Operating Margin
Core operations generate 36.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.64 in profit for every $100 of shareholder equity.
ROA
Abiomed, Inc. generates $8.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Abiomed, Inc. generates strong operating cash flow of $283.17M, reflecting robust business health.
Free Cash Flow
Abiomed, Inc. generates strong free cash flow of $247.68M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.49 in free cash annually.
FCF Yield
ABMD converts 1.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
126.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
16.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How ABMD Stacks Against Its Sector Peers
| Metric | ABMD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 126.85 | 29.43 | Worse (Expensive) |
| ROE | 9.64% | 800.00% | Weak |
| Net Margin | 13.23% | -20145.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 7.05 | 4.64 | Strong Liquidity |
| ROA | 8.16% | -17936.00% (disorted) | Weak |
ABMD outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Abiomed, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation