ShockWave Medical, Inc.
ShockWave Medical, Inc. Fundamental Analysis
ShockWave Medical, Inc. (SWAV) shows moderate financial fundamentals with a PE ratio of 83.43, profit margin of 20.17%, and ROE of 24.96%. The company generates $0.7B 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 75.3/100 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 SWAV's fundamental strength across five key dimensions:
Efficiency Score
WeakSWAV struggles to generate sufficient returns from assets.
Valuation Score
ModerateSWAV shows balanced valuation metrics.
Growth Score
ModerateSWAV shows steady but slowing expansion.
Financial Health Score
ModerateSWAV shows balanced financial health with some risks.
Profitability Score
ExcellentSWAV achieves industry-leading margins.
Key Financial Metrics
Is SWAV Expensive or Cheap?
P/E Ratio
SWAV trades at 83.43 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SWAV's PEG of 0.83 indicates potential undervaluation.
Price to Book
The market values ShockWave Medical, Inc. at 18.38 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 63.54 times EBITDA. This signals the market has high growth expectations.
How Well Does SWAV Make Money?
Net Profit Margin
For every $100 in sales, ShockWave Medical, Inc. keeps $20.17 as profit after all expenses.
Operating Margin
Core operations generate 22.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.96 in profit for every $100 of shareholder equity.
ROA
ShockWave Medical, Inc. generates $9.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ShockWave Medical, Inc. generates strong operating cash flow of $200.53M, reflecting robust business health.
Free Cash Flow
ShockWave Medical, Inc. generates strong free cash flow of $169.23M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.51 in free cash annually.
FCF Yield
SWAV converts 1.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
83.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
18.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
17.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
11.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How SWAV Stacks Against Its Sector Peers
| Metric | SWAV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 83.43 | 29.28 | Worse (Expensive) |
| ROE | 24.96% | 820.00% | Weak |
| Net Margin | 20.17% | -19731.00% (disorted) | Strong |
| Debt/Equity | 1.15 | 0.26 | Weak (High Leverage) |
| Current Ratio | 11.76 | 4.69 | Strong Liquidity |
| ROA | 9.40% | -17993.00% (disorted) | Weak |
SWAV outperforms its industry in 2 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 ShockWave Medical, 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