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athenahealth

Nasdaq:ATHN
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ATHN
Nasdaq
$6B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

athenahealth, Inc., together with its subsidiaries, provides network-based medical record, revenue cycle, patient engagement, care coordination, and population health services for medical groups and health systems. The last earnings update was 108 days ago. More info.


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ATHN Share Price and Events
Price Volatility
ATHN
Industry
5yr Volatility vs Market
Related Companies

Value

 Is athenahealth undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of athenahealth to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for athenahealth.

NasdaqGS:ATHN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:ATHN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Healthcare Services Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.871 (1 + (1- 21%) (4.17%))
0.899
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.899 * 7.05%)
9.29%

Discounted Cash Flow Calculation for NasdaqGS:ATHN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for athenahealth is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:ATHN DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 83.44 159.12 243.80 327.00 440.00
Source Analyst x6 Analyst x5 Analyst x2 Analyst x1 Analyst x1
Present Value
Discounted (@ 9.29%)
76.35 133.21 186.76 229.19 282.18
Present value of next 5 years cash flows $908
NasdaqGS:ATHN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $440 × (1 + 2.95%) ÷ (9.29% – 2.95%)
$7,143
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $7,143 ÷ (1 + 9.29%)5
$4,581
NasdaqGS:ATHN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $908 + $4,581
$5,489
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,489 / 40
$135.83
NasdaqGS:ATHN Discount to Share Price
Calculation Result
Value per share (USD) From above. $135.83
Current discount Discount to share price of $158.74
= -1 x ($158.74 - $135.83) / $135.83
-16.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of athenahealth is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for athenahealth's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are athenahealth's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:ATHN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in USD $2.14
NasdaqGS:ATHN Share Price ** NasdaqGS (2018-07-17) in USD $158.74
United States of America Healthcare Services Industry PE Ratio Median Figure of 27 Publicly-Listed Healthcare Services Companies 45.56x
United States of America Market PE Ratio Median Figure of 7,808 Publicly-Listed Companies 18.38x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of athenahealth.

NasdaqGS:ATHN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ATHN Share Price ÷ EPS (both in USD)

= 158.74 ÷ 2.14

74.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • athenahealth is overvalued based on earnings compared to the US Healthcare Services industry average.
  • athenahealth is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does athenahealth's expected growth come at a high price?
Raw Data
NasdaqGS:ATHN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 74.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
18.6%per year
United States of America Healthcare Services Industry PEG Ratio Median Figure of 18 Publicly-Listed Healthcare Services Companies 3.74x
United States of America Market PEG Ratio Median Figure of 5,905 Publicly-Listed Companies 1.6x

*Line of best fit is calculated by linear regression .

NasdaqGS:ATHN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 74.27x ÷ 18.6%

3.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • athenahealth is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on athenahealth's assets?
Raw Data
NasdaqGS:ATHN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in USD $24.09
NasdaqGS:ATHN Share Price * NasdaqGS (2018-07-17) in USD $158.74
United States of America Healthcare Services Industry PB Ratio Median Figure of 72 Publicly-Listed Healthcare Services Companies 3.41x
United States of America Market PB Ratio Median Figure of 13,225 Publicly-Listed Companies 1.73x
NasdaqGS:ATHN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ATHN Share Price ÷ Book Value per Share (both in USD)

= 158.74 ÷ 24.09

6.59x

* Primary Listing of athenahealth.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • athenahealth is overvalued based on assets compared to the US Healthcare Services industry average.
X
Value checks
We assess athenahealth's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare Services industry average (and greater than 0)? (1 check)
  5. athenahealth has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is athenahealth expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is athenahealth expected to grow at an attractive rate?
  • athenahealth's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • athenahealth's earnings growth is expected to exceed the United States of America market average.
  • athenahealth's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:ATHN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:ATHN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 18.6%
NasdaqGS:ATHN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 8.7%
United States of America Healthcare Services Industry Earnings Growth Rate Market Cap Weighted Average 24%
United States of America Healthcare Services Industry Revenue Growth Rate Market Cap Weighted Average 12.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 11.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:ATHN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:ATHN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,912 334 205 4
2021-12-31 1,747 313 172 4
2020-12-31 1,629 342 137 10
2019-12-31 1,484 311 135 24
2018-12-31 1,353 242 97 24
NasdaqGS:ATHN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-03-31 1,264 255 86
2017-12-31 1,220 241 53
2017-09-30 1,179 211 31
2017-06-30 1,151 176 32
2017-03-31 1,112 191 20
2016-12-31 1,083 183 21
2016-09-30 1,052 197 19
2016-06-30 1,012 171 11
2016-03-31 974 159 22
2015-12-31 925 164 14
2015-09-30 880 148 15
2015-06-30 835 160 8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • athenahealth's earnings are expected to grow by 18.6% yearly, however this is not considered high growth (20% yearly).
  • athenahealth's revenue is expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:ATHN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from athenahealth Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ATHN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 4.73 5.51 3.94 2.00
2021-12-31 4.03 4.82 3.23 2.00
2020-12-31 3.42 4.16 2.30 3.00
2019-12-31 3.20 4.23 2.71 15.00
2018-12-31 2.45 3.10 1.93 15.00
NasdaqGS:ATHN Past Financials Data
Date (Data in USD Millions) EPS *
2018-03-31 2.14
2017-12-31 1.33
2017-09-30 0.79
2017-06-30 0.81
2017-03-31 0.52
2016-12-31 0.53
2016-09-30 0.48
2016-06-30 0.28
2016-03-31 0.57
2015-12-31 0.36
2015-09-30 0.39
2015-06-30 0.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • athenahealth is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess athenahealth's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
athenahealth has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has athenahealth performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare athenahealth's growth in the last year to its industry (Healthcare Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • athenahealth has delivered over 20% year on year earnings growth in the past 5 years.
  • athenahealth's 1-year earnings growth exceeds its 5-year average (319.6% vs 25.7%)
  • athenahealth's earnings growth has exceeded the US Healthcare Services industry average in the past year (319.6% vs 24.5%).
Earnings and Revenue History
athenahealth's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from athenahealth Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:ATHN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 1,264.30 85.60 373.00 175.80
2017-12-31 1,220.30 53.10 388.70 170.40
2017-09-30 1,179.30 31.30 394.90 174.40
2017-06-30 1,151.40 32.20 393.50 160.60
2017-03-31 1,112.20 20.40 392.30 147.00
2016-12-31 1,082.90 21.00 388.30 134.50
2016-09-30 1,052.20 18.89 370.60 129.33
2016-06-30 1,011.57 10.78 365.81 120.89
2016-03-31 974.37 22.03 354.82 116.47
2015-12-31 924.70 14.00 355.60 111.00
2015-09-30 880.41 15.04 357.22 90.48
2015-06-30 834.77 7.62 343.22 86.00
2015-03-31 796.00 -3.90 333.87 78.03
2014-12-31 752.60 -3.10 300.20 82.70
2014-09-30 710.96 1.30 292.59 65.98
2014-06-30 672.06 4.10 273.36 63.00
2014-03-31 632.44 -6.16 255.50 60.85
2013-12-31 595.00 2.59 237.46 57.64
2013-09-30 539.73 -4.61 219.50 50.58
2013-06-30 494.09 0.43 202.92 44.22
2013-03-31 451.30 17.00 182.14 38.57
2012-12-31 422.27 18.73 166.70 33.79
2012-09-30 398.48 18.12 159.32 31.49
2012-06-30 376.33 17.19 150.44 28.88
2012-03-31 350.70 18.22 138.44 25.43
2011-12-31 324.07 19.05 128.45 23.34
2011-09-30 300.92 21.02 115.84 21.29

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • athenahealth has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • athenahealth used its assets less efficiently than the US Healthcare Services industry average last year based on Return on Assets.
  • athenahealth's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess athenahealth's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
athenahealth has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is athenahealth's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up athenahealth's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • athenahealth is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • athenahealth's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of athenahealth's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from athenahealth Company Filings, last reported 3 months ago.

NasdaqGS:ATHN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 973.40 269.20 142.00
2017-12-31 791.50 272.80 165.10
2017-09-30 745.10 276.40 122.70
2017-06-30 717.00 280.00 71.20
2017-03-31 687.40 283.70 98.00
2016-12-31 633.30 291.10 147.40
2016-09-30 599.89 290.98 129.99
2016-06-30 565.57 294.61 134.30
2016-03-31 545.67 298.24 100.59
2015-12-31 543.30 298.20 141.90
2015-09-30 512.15 300.52 117.96
2015-06-30 480.31 300.56 115.70
2015-03-31 463.75 265.62 60.50
2014-12-31 475.12 207.62 114.74
2014-09-30 439.35 212.66 105.12
2014-06-30 429.38 216.79 109.45
2014-03-31 429.40 220.33 125.53
2013-12-31 391.31 224.10 65.00
2013-09-30 358.36 242.89 62.27
2013-06-30 334.72 246.25 33.56
2013-03-31 335.84 105.00 47.81
2012-12-31 311.65 0.00 193.08
2012-09-30 294.80 0.00 180.20
2012-06-30 268.93 0.00 155.36
2012-03-31 253.50 0.00 116.04
2011-12-31 236.47 0.00 119.87
2011-09-30 220.02 0.00 118.47
  • athenahealth's level of debt (27.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (31.7% vs 27.7% today).
  • Debt is well covered by operating cash flow (94.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 22.6x coverage).
X
Financial health checks
We assess athenahealth's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. athenahealth has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from athenahealth dividends.
If you bought $2,000 of athenahealth shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate athenahealth's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate athenahealth's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:ATHN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Services Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 0.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5856 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:ATHN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.00 4.00
2019-12-31 0.00 5.00
2018-12-31 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as athenahealth has not reported any payouts.
  • Unable to verify if athenahealth's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of athenahealth's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as athenahealth has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of athenahealth's dividends in 3 years as they are not expected to pay a notable for United States of America.
X
Income/ dividend checks
We assess athenahealth's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can athenahealth afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. athenahealth has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • athenahealth has no CEO, or we have no data on them.
Management Team Tenure

Average tenure and age of the athenahealth management team in years:

0.9
Average Tenure
45
Average Age
  • The average tenure for the athenahealth management team is less than 2 years, this suggests a new team.
Management Team

Prakash Khot

TITLE
Executive VP & CTO
COMPENSATION
$3M
AGE
48
TENURE
2.5 yrs

Dan Haley

TITLE
Senior VP and Chief Legal & Administrative Officer
COMPENSATION
$1M
AGE
45
TENURE
0.9 yrs

Jonathan Porter

TITLE
Senior Vice President & Chief Product Officer
COMPENSATION
$1M
AGE
43
TENURE
1.9 yrs

Jeff Immelt

TITLE
Executive Chairman of the Board of Directors
AGE
61
TENURE
0.1 yrs

Marc Levine

TITLE
Executive VP
AGE
58
TENURE
0.5 yrs

Matthew Levesque

TITLE
Senior Vice President
TENURE
0.4 yrs

Dana Quattrochi

TITLE
Executive Director of Investor Relations

Tim O’Brien

TITLE
Senior VP and Chief Marketing & Commercial Operations Officer
COMPENSATION
$2M
AGE
42
TENURE
2.5 yrs

Paul Merrild

TITLE
Senior Vice President of Sales
AGE
43
TENURE
7.5 yrs

Lorraine Townsend

TITLE
Senior Vice President of Human Resources
TENURE
0.1 yrs
Board of Directors Tenure

Average tenure and age of the athenahealth board of directors in years:

4.8
Average Tenure
57
Average Age
  • The tenure for the athenahealth board of directors is about average.
Board of Directors

Dev Ittycheria

TITLE
Director
COMPENSATION
$308K
AGE
51
TENURE
8 yrs

Jeff Immelt

TITLE
Executive Chairman of the Board of Directors
AGE
61
TENURE
0.4 yrs

Jackie Kosecoff

TITLE
Director
COMPENSATION
$313K
AGE
69
TENURE
6.1 yrs

Tom Szkutak

TITLE
Director
COMPENSATION
$310K
AGE
57
TENURE
2.1 yrs

Brandon Hull

TITLE
Director
COMPENSATION
$321K
AGE
57
TENURE
18.8 yrs

Ed Park

TITLE
Director
COMPENSATION
$297K
AGE
43
TENURE
1.5 yrs

Jack Kane

TITLE
Director
COMPENSATION
$2M
AGE
65
TENURE
11 yrs

Amy Abernethy

TITLE
Director
COMPENSATION
$298K
AGE
49
TENURE
4.8 yrs

Brian McKeon

TITLE
Director
COMPENSATION
$135K
AGE
56
TENURE
0.8 yrs
Recent Insider Trading
  • More shares have been bought than sold by athenahealth insiders in the past 3 months.
Who owns this company?
X
Management checks
We assess athenahealth's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. athenahealth has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

What Are Analysts Saying About athenahealth Inc's (NASDAQ:ATHN) Future?

Looking at athenahealth Inc's (NASDAQ:ATHN) earnings update in March 2018,. … with earnings growth rate expected to be 24.18% next year, which is within range of the past five-year average earnings growth of 25.71% … In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for athenahealth in the longer term.

Simply Wall St -

Is athenahealth Inc's (NASDAQ:ATHN) PE Ratio A Signal To Sell For Investors?

which is 1.71 times more expensive than the 42.86x average multiple of the Healthcare Services? … But can investors make a closing judgement of the company’s value based on this bigger multiple. … The answer is no, since important variables like the company’s potential to grow and debt levels are ignored in the PE’s calculation

Simply Wall St -

What You Must Know About athenahealth Inc's (NASDAQ:ATHN) Return on Equity

and looking to gauge the potential return on investment in athenahealth Inc (NASDAQ:ATHN). … athenahealth Inc (NASDAQ:ATHN) generated a below-average return on equity of 8.79% in the past 12 months, while its industry returned 15.32%. … An investor may attribute an inferior ROE to a relatively inefficient performance, and whilst this can often be the case, knowing the nuts and bolts of the ROE calculation may change that perspective and give you a deeper insight into ATHN's past performance

Simply Wall St -

Are Insiders Too Confident In athenahealth Inc (NASDAQ:ATHN)?

athenahealth, Inc., together with its subsidiaries, provides network-based medical record, revenue cycle, patient engagement, care coordination, and population health services for medical groups and health systems. … some insider buying over the past three months, with insiders investing in. … Generally, insiders buying more shares in their own firm sends a bullish signal

Simply Wall St -

Top NasdaqGS High Growth Stock

Extreme optimism for ATHN, as market analysts projected an outstanding earnings growth rate of 20.90% for the stock, supported by a double-digit sales growth of 20.70%. … Since net income isn’t artificially inflated by one-off initiatives such as cost-cutting, we know this profit growth is more likely to be sustainable. … NasdaqGM:VRAY Future Profit May 27th 18 For more financially robust companies with high growth potential to enhance your portfolio, explore this interactive list of fast growing companies.

Simply Wall St -

Should You Buy athenahealth Inc (NASDAQ:ATHN) Now?

NasdaqGS:ATHN Future Profit Apr 26th 18 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. … ATHN’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

Why I Bought athenahealth Inc (NASDAQ:ATHN)

Net income is expected to reach US$95.15M over the next year, and over the next five years, earnings are expected to rise at an annual rate of 23.39% on average, compared to the industry average rate of 20.06%. … ATHN also generates a sufficient level of earnings which amply covers its annual interest payment 14.88x. … Moreover, comparing ATHN's current share price to its peers based on its industry and earnings level, it's overvalued by 191.43%, with a PE ratio of 107x vs.

Simply Wall St -

Is athenahealth Inc's (NASDAQ:ATHN) Liquidity As Good As Its Solvency?

Moreover, ATHN has produced cash from operations of $182.6M in the last twelve months, resulting in an operating cash to total debt ratio of 62.73%, indicating that ATHN’s current level of operating cash is high enough to cover debt. … Looking at ATHN’s most recent $197.9M liabilities, the company has been able to meet these obligations given the level of current assets of $343.2M, with a current ratio of 1.73x. … For ATHN, the ratio of 9.42x suggests that interest is appropriately covered, which means that debtors may be willing to loan the company more money, giving ATHN ample headroom to grow its debt facilities.Next Steps: ATHN’s debt level is appropriate for a company its size, and it is also able to generate sufficient cash flow coverage, meaning it has been able to put its debt in good use.

Simply Wall St -

What Should You Know About athenahealth Inc's (NASDAQ:ATHN) Profit Margin?

See our latest analysis for athenahealth Understanding ATHN's earnings with profit margin Attractive margins generally indicate a desirable ability to translate sales revenue in to earnings, and return for shareholders. … Knowing the portion of top line revenue that is turned into net income helps to assess this ability whilst spotting profit drivers, and can be found by calculating ATHN's profit margin. … Margin Calculation for ATHN Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 31.30 Million ÷ 1.18 Billion = 2.65% The past five years have seen athenahealth's margin contract, with 22.03% in average revenue growth surpassing 5.81% in average net income growth, which suggests that a smaller percentage of revenue falls to the bottom line despite the fact revenue has increased over the previous 5 years.

Simply Wall St -

Want To Invest In athenahealth Inc (NASDAQ:ATHN) Today? Read This First

athenahealth is trading at price-to-earnings (PE) ratio of 170.32x, this also tells us the stock is overvalued based on current earnings compared to the healthcare services industry average of 33.28x , and overvalued compared to the US market average ratio of 19.52x. … NasdaqGS:ATHN PE PEG Gauge Dec 21st 17 After looking at ATHN's value based on current earnings, we can see it seems overvalued relative to other companies in the industry. … athenahealth's PE ratio of 170.32x and estimated 78.19% growth in earnings next year give it a quite high PEG ratio of 4.65x.

Simply Wall St -

Company Info

Map
Description

athenahealth, Inc., together with its subsidiaries, provides network-based medical record, revenue cycle, patient engagement, care coordination, and population health services for medical groups and health systems. It offers athenaCollector, a network-enabled billing and practice management solution; athenaClinicals, an electronic health record for managing patient’s clinical documentation; athenaCommunicator, an engagement and communication solution that provides an automated communication service between patients and provider practices for interactions outside the exam room; and athenaCoordinator for order transmission and care coordination services. The company also provides athenahealth Population Health, a cloud-based population health service; and Epocrates services that include clinical information and decision support services in the areas of drug and disease information, medical calculator and tools, clinical guidelines, clinical messaging, and market research. In addition, it offers athenahealth Health Plan data exchange facilitates to exchange the data between providers and health plans for the healthcare operations of clients; athenaOne Analytics that includes an analytics and dashboard application, as well as provides visibility into the financial and operational health of an organization; and pre-certification processing and referral processing services. The company serves healthcare providers, medical groups, and health systems through its direct sales force and channel partners in the United States and internationally. athenahealth, Inc. was formerly known as athenahealth.com, Inc. and changed its name to athenahealth, Inc. in November 2000. The company was founded in 1997 and is headquartered in Watertown, Massachusetts.

Details
Name: athenahealth, Inc.
ATHN
Exchange: NasdaqGS
Founded: 1997
$6,458,281,610
40,409,721
Website: http://www.athenahealth.com
Address: athenahealth, Inc.
311 Arsenal Street,
Watertown,
Massachusetts, 02472,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ATHN Common Shares Nasdaq Global Select US USD 20. Sep 2007
DB 36A Common Shares Deutsche Boerse AG DE EUR 20. Sep 2007
Number of employees
Current staff
Staff numbers
5,156
athenahealth employees.
Industry
Health Care Technology
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/07/17 21:47
End of day share price update: 2018/07/17 00:00
Last estimates confirmation: 2018/07/17
Last earnings update: 2018/03/31
Last annual earnings update: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.