NasdaqGS:ABMD

Stock Analysis Report

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

Fundamentals

Flawless balance sheet with acceptable track record.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-17.5%

ABMD

2.4%

US Medical Equipment

0.9%

US Market


1 Year Return

-39.0%

ABMD

23.9%

US Medical Equipment

16.8%

US Market

Return vs Industry: ABMD underperformed the US Medical Equipment industry which returned 23.9% over the past year.

Return vs Market: ABMD underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

ABMDIndustryMarket
7 Day-17.5%2.4%0.9%
30 Day5.2%3.6%4.5%
90 Day-5.9%2.2%6.2%
1 Year-39.0%-39.0%25.0%23.9%19.4%16.8%
3 Year66.0%66.0%90.3%84.5%47.5%38.0%
5 Year419.4%419.4%117.4%93.9%62.0%44.1%

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?

37.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABMD ($184.34) is trading above our estimate of fair value ($143.85)

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


Price To Earnings Ratio

PE vs Industry: ABMD is good value based on its PE Ratio (37.7x) compared to the Medical Equipment industry average (46.3x).

PE vs Market: ABMD is poor value based on its PE Ratio (37.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ABMD is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: ABMD is overvalued based on its PB Ratio (8.4x) compared to the US Medical Equipment industry average (4x).


Next Steps

Future Growth

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

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABMD's forecast earnings growth (14.3% per year) is above the savings rate (2.7%).

Earnings vs Market: ABMD's earnings (14.3% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: ABMD's revenue (14.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ABMD's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABMD's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has Abiomed performed over the past 5 years?

32.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABMD has high quality earnings.

Growing Profit Margin: ABMD's current net profit margins (26.9%) are lower than last year (27.6%).


Past Earnings Growth Analysis

Earnings Trend: ABMD's earnings have grown significantly by 32.5% per year over the past 5 years.

Accelerating Growth: ABMD's earnings growth over the past year (15.9%) is below its 5-year average (32.5% per year).

Earnings vs Industry: ABMD earnings growth over the past year (15.9%) underperformed the Medical Equipment industry 28.3%.


Return on Equity

High ROE: ABMD's Return on Equity (22.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Abiomed's financial position?


Financial Position Analysis

Short Term Liabilities: ABMD's short term assets ($647.4M) exceeds its short term liabilities ($112.2M)

Long Term Liabilities: ABMD's short term assets ($647.4M) exceeds its long term liabilities (20.7M)


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

Inventory Level: ABMD has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ABMD's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

What is the CEO of Abiomed's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Mike Minogue (52yo)

15.6yrs

Tenure

US$19,243,230

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 ($USD19.24M) is above average for companies of similar size in the US market ($USD6.77M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.2yrs

Average Tenure

52yo

Average Age

Experienced Management: ABMD's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

66.5yo

Average Age

Experienced Board: ABMD's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$7,203,11015 Feb 19
Martin Sutter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$361.00
SellUS$10,502,63506 Feb 19
Martin Sutter
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceUS$351.46

Ownership Breakdown

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


Management Team

  • Thorsten Siess

    Chief Technology Officer

    • Tenure: 0yrs
  • Mike Minogue (52yo)

    Chairman

    • Tenure: 15.6yrs
    • Compensation: US$19.24m
  • Andrew Greenfield (46yo)

    VP & Chief Commercial Officer

    • Tenure: 0.6yrs
    • Compensation: US$2.86m
  • David Weber (58yo)

    Senior VP & COO

    • Tenure: 12.6yrs
    • Compensation: US$4.41m
  • Ian McLeod

    VP & Corporate Controller

    • Tenure: 12yrs
    • Compensation: US$1.49m
  • Michael Howley (55yo)

    VP & GM of Global Sales

    • Tenure: 10.7yrs
    • Compensation: US$2.88m
  • Ingrid Ward

    Director of Investor Relations

    • Tenure: 5.2yrs
  • Todd Trapp (48yo)

    CFO & VP

    • Tenure: 1.6yrs
    • Compensation: US$3.21m
  • Marc Began

    VP, General Counsel & Secretary

    • Tenure: 1.8yrs
  • Karen Mahoney

    Head of Global Human Resources

    • Tenure: 0.2yrs

Board Members

  • Marty Sutter (64yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$267.16k
  • Jeannine Rivet (71yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$267.16k
  • Paul Thomas (63yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$269.66k
  • W. Austen (89yo)

    Director Emeritus

    • Tenure: 3.3yrs
    • Compensation: US$254.66k
  • Eric Rose (68yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$259.66k
  • Dorothy Puhy (67yo)

    Lead Director

    • Tenure: 14.1yrs
    • Compensation: US$294.66k
  • Mike Minogue (52yo)

    Chairman

    • Tenure: 15.6yrs
    • Compensation: US$19.24m
  • Chris Van Gorder (66yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$264.66k

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$8.042b
  • Shares outstanding: 45.16m
  • 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

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 continuum of care to heart failure patients. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 23:30
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.