NasdaqGS:ABMD

Stock Analysis Report

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Executive Summary

Abiomed, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart.


Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

How has Abiomed's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABMD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.0%

ABMD

-0.2%

US Medical Equipment

3.0%

US Market


1 Year Return

64.9%

ABMD

14.8%

US Medical Equipment

15.8%

US Market

Return vs Industry: ABMD exceeded the US Medical Equipment industry which returned 16.8% over the past year.

Return vs Market: ABMD exceeded the US Market which returned 15.4% over the past year.


Shareholder returns

ABMDIndustryMarket
7 Day5.0%-0.2%3.0%
30 Day18.6%8.5%6.0%
90 Day68.4%10.7%16.4%
1 Year64.9%64.9%15.8%14.8%18.4%15.8%
3 Year108.1%108.1%75.5%70.7%44.8%35.4%
5 Year203.1%203.1%118.0%101.1%75.7%56.7%

Price Volatility Vs. Market

How volatile is Abiomed's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Abiomed undervalued compared to its fair value and its price relative to the market?

70.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABMD ($314.98) is trading above our estimate of fair value ($131.69)

Significantly Below Fair Value: ABMD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ABMD is poor value based on its PE Ratio (70.1x) compared to the US Medical Equipment industry average (54.5x).

PE vs Market: ABMD is poor value based on its PE Ratio (70.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ABMD is poor value based on its PEG Ratio (7.6x)


Price to Book Ratio

PB vs Industry: ABMD is overvalued based on its PB Ratio (13.3x) compared to the US Medical Equipment industry average (4.2x).


Next Steps

Future Growth

How is Abiomed forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABMD's forecast earnings growth (9.2% per year) is above the savings rate (2.2%).

Earnings vs Market: ABMD's earnings (9.2% per year) are forecast to grow slower than the US market (22.6% per year).

High Growth Earnings: ABMD's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABMD's revenue (11.2% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: ABMD's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ABMD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Abiomed performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABMD has high quality earnings.

Growing Profit Margin: ABMD's current net profit margins (24.1%) are lower than last year (33.6%).


Past Earnings Growth Analysis

Earnings Trend: ABMD's earnings have grown significantly by 29.5% per year over the past 5 years.

Accelerating Growth: ABMD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ABMD had negative earnings growth (-21.6%) over the past year, making it difficult to compare to the Medical Equipment industry average (1.2%).


Return on Equity

High ROE: ABMD's Return on Equity (19.1%) is considered low.


Next Steps

Financial Health

How is Abiomed's financial position?


Financial Position Analysis

Short Term Liabilities: ABMD's short term assets ($635.9M) exceed its short term liabilities ($131.9M).

Long Term Liabilities: ABMD's short term assets ($635.9M) exceed its long term liabilities ($19.1M).


Debt to Equity History and Analysis

Debt Level: ABMD is debt free.

Reducing Debt: ABMD has not had any debt for past 5 years.

Debt Coverage: ABMD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ABMD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Abiomed current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ABMD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ABMD's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ABMD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ABMD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ABMD's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure


CEO

Mike Minogue (53 yo)

16.33yrs

Tenure

US$16,612,766

Compensation

Mr. Michael R. Minogue, also known as Mike, has been Chief Executive Officer and President of ABIOMED Europe GmbH since April 2004. Mr. Minogue has been Chief Executive Officer, President and Director of A ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD16.61M) is above average for companies of similar size in the US market ($USD11.29M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Minogue
Chairman16.33yrsUS$16.61m1.1%
$ 155.8m
Todd Trapp
CFO & VP2.33yrsUS$3.07m0.0069%
$ 971.9k
David Weber
Senior VP & COO13.33yrsUS$2.66m0.32%
$ 45.9m
Michael Howley
VP & GM of Global Sales11.42yrsUS$1.71m0.15%
$ 21.4m
Andrew Greenfield
VP & Chief Commercial Officer1.33yrsUS$2.82m0.11%
$ 15.6m
Thorsten Siess
Chief Technology Officerno datano datano data
Ingrid Ward
Director of Investor Relations5.92yrsno datano data
Marc Began
VP, General Counsel & Secretary2.58yrsno datano data
Karen Mahoney
Head of Global Human Resources0.92yrno datano data
Charles Simonton
VP & Chief Medical Officer0.17yrno datano data
Ian McLeod
VP & Corporate Controller12.75yrsUS$1.49mno data
Kim Chappell
Advanced Support Specialist7.67yrsno datano data

5.9yrs

Average Tenure

53yo

Average Age

Experienced Management: ABMD's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Minogue
Chairman16.33yrsUS$16.61m1.1%
$ 155.8m
Martin Sutter
Independent Director12.25yrsUS$267.50k0.42%
$ 59.0m
Jeannine Rivet
Independent Director4.5yrsUS$267.50k0.015%
$ 2.2m
Paul Thomas
Independent Director9.25yrsUS$270.00k0.017%
$ 2.5m
W. Austen
Director Emeritus4yrsUS$255.00kno data
Eric Rose
Independent Director6yrsUS$260.00k0.029%
$ 4.2m
Dorothy Puhy
Independent Lead Director14.83yrsUS$295.00k0.040%
$ 5.6m
Christopher Van Gorder
Independent Director4.5yrsUS$265.00k0.012%
$ 1.8m

7.6yrs

Average Tenure

67.5yo

Average Age

Experienced Board: ABMD's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Abiomed, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Abiomed, Inc.
  • Ticker: ABMD
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$14.188b
  • Shares outstanding: 45.04m
  • Website: https://www.abiomed.com

Number of Employees


Location

  • Abiomed, Inc.
  • 22 Cherry Hill Drive
  • Danvers
  • Massachusetts
  • 1923
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABMDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1987
AIODB (Deutsche Boerse AG)YesCommon StockDEEURJul 1987
0H7SLSE (London Stock Exchange)YesCommon StockGBUSDJul 1987
ABMD *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1987
A1BM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Abiomed, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. It also provides a continuum of care to heart failure patient ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 00:51
End of Day Share Price2020/08/06 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.