Foundation Medicine Stock Analysis, Valuation (NASDAQ:FMI)

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$136.75 $30.3 (28.46%) FMI stock closing price Jun 19, 2018 (Closing)

Watch the robo advisor video of Foundation Medicine stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for FMI stock is shown in the video.

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.

Foundation Medicine Inc Stock Rating 2.1/5

Amigobulls FMI stock analysis uses latest quarter 2018 Q1 financial data like Foundation Medicine revenue growth, profit margins and cash flows. We compare Foundation Medicine valuation with its sector peers to gauge relative attractiveness of FMI stock. Based on a company's historical fundamentals we arrive at Foundation Medicine stock rating which is indicative of the company's financial performance.

Should you buy FMI stock?

  • The Year Over Year (YoY) revenue growth for Foundation Medicine was 100.7% in 2018-03.

Should you sell FMI stock?

  • Foundation Medicine registered a negative operating margin of -83.99 (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Foundation Medicine had an average Net loss of -85%.
  • With a debt/equity ratio of 4.76, Foundation Medicine is highly leveraged in comparison to -sectordesc- peers.
  • PE ratio is meaningless for FMI stock as the company has losses.
  • The company is trading at a price to sales multiple of 28, which is higher in comparison to the Medical sector average of 6.6, making FMI stock expensive.
  • The company has a negative Return on Invested Capital of -421.6, which is a red flag.
  • A negative ROE of -231.1 indicates that the company is not able to generate profits with the money shareholders have invested.
  • The company has a negative free cash flow margin of -84.3.

Comments on this video and Foundation Medicine stock

Investors can make use of the Amigobulls Foundation Medicine stock analysis to ascertain how FMI stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Foundation Medicine revenue growth and profit or net income are two main metrics which help in identifying whether FMI stock is overvalued or undervalued. Investors could make use of FMI technical analysis to check whether the fundamental story is reflected in the market sentiment.