Athenahealth Stock Analysis, Valuation (NASDAQ:ATHN)

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$143.09 $1.07 (0.74%) ATHN stock closing price Sep 17, 2018 (Closing)

View the Athenahealth stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for ATHN stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

athenahealth, Inc Stock Rating 3.8/5

Amigobulls ATHN stock analysis relies on business fundamentals such as Athenahealth revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. Athenahealth valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Athenahealth stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy ATHN stock?

  • Athenahealth had a healthy average operating margin of 11.08 over the last 4 quarters.
  • Net margins came in at average 8.7% for Athenahealth over the last twelve months.
  • The company has an operating cash flow which is 3.2363 times the net income. We see this as a positive signal.
  • ATHN stock is trading at a favorable price to sales multiple of 4.8 as against the Medical sector average multiple of 6.9.
  • Athenahealth has an attractive ROIC (Return on Invested Capital) of 12.2
  • Athenahealth has a good Return On Equity (ROE) of 13.2.
  • Athenahealth has a healthy FCF (Free Cash Flow) margin of 33.7.

Should you sell ATHN stock?

  • ATHN stock is trading at a PE ratio of 47.9, which is worse than the sector average multiple of 25.8.

Comments on this video and Athenahealth stock

Amigobulls Athenahealth stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of ATHN stock. The fundamentals of a company are vital to identify long-term investment opportunities.

Athenahealth revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.