Athenahealth Stock Analysis, Valuation (NASDAQ:ATHN)

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$150.01 $0.58 (0.39%) ATHN stock closing price May 18, 2018 (Closing)
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Athenahealth
Updated on : May 18, 2018
previous close
ATHN 150 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Medical-Information Systems
Sector :
Medical
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
8.8%
Sector Average:
-12.2%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
269.2M
Debt/Equity Ratio:
 0.28
Compared to the industry
Cash Flow
Operating cash flow:
$30.2M
Net Income:
$31.1M
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
High Debt Burden
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
ATHN PS :
4.8
Industry PS :
6.4
Sector:   Medical.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
9.8%
Return on Equity:
10.9%
Free Cash Flow Margin:
4.3%
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Athenahealth Stock Analysis

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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 3.4/5

Amigobulls ATHN stock analysis relies on business fundamentals such as Athenahealth revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 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's average operating margin of 8.8% was exceptional.
  • LTM Net margins were good at 6.8% for Athenahealth.
  • Athenahealth's return on invested capital of 9.8% is good.
  • Athenahealth has a good Return On Equity (ROE) of 10.9%.
  • Athenahealth has a healthy FCF (Free Cash Flow) margin of 4.3%.

Should you sell ATHN stock?

  • Athenahealth has a debt/equity ratio of  0.28, which is worse than the average in the Medical sector.
  • ATHN stock is trading at a PE ratio of 58.1, which is worse than the industry average multiple of 24.

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.