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 Analysis

Flawless balance sheet with proven 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.7%

ABMD

13.4%

US Medical Equipment

7.2%

US Market


1 Year Return

-47.6%

ABMD

-5.0%

US Medical Equipment

-10.4%

US Market

Return vs Industry: ABMD underperformed the US Medical Equipment industry which returned -5% over the past year.

Return vs Market: ABMD underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

ABMDIndustryMarket
7 Day3.7%13.4%7.2%
30 Day-0.8%-8.0%-12.6%
90 Day-12.7%-16.0%-19.4%
1 Year-47.6%-47.6%-4.2%-5.0%-8.5%-10.4%
3 Year20.1%20.1%46.3%42.2%15.8%8.3%
5 Year113.7%113.7%78.2%59.7%35.8%21.0%

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?

10.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABMD ($148.99) is trading below our estimate of fair value ($165.83)

Significantly Below Fair Value: ABMD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ABMD is good value based on its PE Ratio (27.5x) compared to the Medical Equipment industry average (38.6x).

PE vs Market: ABMD is poor value based on its PE Ratio (27.5x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: ABMD is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: ABMD is overvalued based on its PB Ratio (6.4x) compared to the US Medical Equipment industry average (3.1x).


Next Steps

Future Growth

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

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABMD's forecast earnings growth (4.6% per year) is above the savings rate (1.7%).

Earnings vs Market: ABMD's earnings (4.6% per year) are forecast to grow slower than the US market (12.2% per year).

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

Revenue vs Market: ABMD's revenue (11.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: ABMD's revenue (11.7% 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 (15.5%).


Next Steps

Past Performance

How has Abiomed performed over the past 5 years?

30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABMD has high quality earnings.

Growing Profit Margin: ABMD's current net profit margins (29.1%) are lower than last year (30.1%).


Past Earnings Growth Analysis

Earnings Trend: ABMD's earnings have grown significantly by 30.2% per year over the past 5 years.

Accelerating Growth: ABMD's earnings growth over the past year (10.5%) is below its 5-year average (30.2% per year).

Earnings vs Industry: ABMD earnings growth over the past year (10.5%) exceeded the Medical Equipment industry 1%.


Return on Equity

High ROE: ABMD's Return on Equity (23.4%) is considered high.


Next Steps

Financial Health

How is Abiomed's financial position?


Financial Position Analysis

Short Term Liabilities: ABMD's short term assets ($636.6M) exceed its short term liabilities ($126.3M).

Long Term Liabilities: ABMD's short term assets ($636.6M) exceed its long term liabilities ($23.5M).


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

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

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

5.4yrs

Average management tenure


CEO

Mike Minogue (52yo)

15.83s

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 ($USD19.24M) is above average for companies of similar size in the US market ($USD7.28M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Minogue
Chairman15.83yrsUS$19.24m1.0% $66.9m
Todd Trapp
CFO & VP1.83yrsUS$3.21m0.00086% $57.7k
David Weber
Senior VP & COO12.83yrsUS$4.41m0.29% $19.5m
Michael Howley
VP & GM of Global Sales11yrsUS$2.88m0.10% $6.8m
Andrew Greenfield
VP & Chief Commercial Officer0.83yrUS$2.86m0.096% $6.5m
Ian McLeod
VP & Corporate Controller12.25yrsUS$1.49m0.0012% $78.6k
Thorsten Siess
Chief Technology Officerno datano datano data
Ingrid Ward
Director of Investor Relations5.42yrsno datano data
Marc Began
VP, General Counsel & Secretary2.17yrsno datano data
Karen Mahoney
Head of Global Human Resources0.42yrno datano data

5.4yrs

Average Tenure

52yo

Average Age

Experienced Management: ABMD's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Minogue
Chairman15.83yrsUS$19.24m1.0% $66.9m
Martin Sutter
Independent Director11.83yrsUS$267.16k0.42% $28.0m
Jeannine Rivet
Independent Director4yrsUS$267.16k0.015% $1.0m
Paul Thomas
Independent Director8.83yrsUS$269.66k0.017% $1.2m
W. Austen
Director Emeritus3.58yrsUS$254.66kno data
Eric Rose
Independent Director5.58yrsUS$259.66k0.029% $2.0m
Dorothy Puhy
Lead Director14.42yrsUS$294.66k0.073% $4.9m
Christopher Van Gorder
Independent Director4yrsUS$264.66k0.012% $829.8k

7.2yrs

Average Tenure

66.5yo

Average Age

Experienced Board: ABMD's board of directors are considered experienced (7.2 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$6.714b
  • Shares outstanding: 45.06m
  • 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
AIOBRSE (Berne Stock Exchange)YesCommon StockCHCHFJul 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 continuum of care to heart failure patients. The company offers Impella 2.5 catheter, a percutaneous micro heart pump with integrated motor and sensors for use in interventional cardiology; and Impella CP, a device used by interventional cardiologists to support patients in the cath lab and cardiac surgeons in the heart surgery suite. It also provides Impella 5.0 and Impella LD, which are percutaneous micro heart pumps with integrated motors and sensors for use primarily in the heart surgery suite; and Impella RP, a percutaneous catheter-based axial flow pump. In addition, the company engages in the development of Impella 5.5 and Impella BTR that are percutaneous micro heart pumps with integrated motors and sensors; and Impella ECP pump that is designed for blood flow of greater than three liters per minute. It sells its products through direct sales and clinical support personnel in the United States, Canada, Europe, and Asia. The company was founded in 1981 and is headquartered in Danvers, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:53
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.