Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Abiomed Inc., FCFE calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities demonstrates a consistent upward trend from 2017 through 2020, rising from 115,116 thousand US dollars to a peak of 314,920 thousand US dollars. However, in 2021, there is a noticeable decline to 274,578 thousand US dollars, followed by a moderate recovery to 285,390 thousand US dollars in 2022. This pattern indicates strong growth in operational cash generation over the initial four years, with a slight contraction and subsequent partial rebound in the last two years.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity shows a similar increasing pattern over the period analyzed. Starting at 64,255 thousand US dollars in 2017, FCFE nearly doubles by 2018 and continues to increase steadily, reaching 270,914 thousand US dollars in 2020. After this peak, a decline is observed in 2021 to 221,195 thousand US dollars, followed by an increase in 2022 to 249,627 thousand US dollars. This trend mirrors the movements in operating cash flow, suggesting that the company’s capacity to generate cash available to equity holders has strengthened overall but faced some fluctuations in the most recent years.
- Overall Analysis
- Both operating cash flow and free cash flow to equity present a generally positive trajectory over the six-year span, highlighting an improving liquidity position and enhanced capacity to fund equity distributions or reinvestment. The declines seen in 2021 may warrant further investigation, as they interrupt what had been steady growth, though the partial recovery in 2022 indicates some restoration of financial strength.
Price to FCFE Ratio, Current
Abiomed Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 45,091,184 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 249,627) |
| FCFE per share | 5.54 |
| Current share price (P) | 373.63 |
| Valuation Ratio | |
| P/FCFE | 67.49 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Abbott Laboratories | 32.69 |
| Elevance Health Inc. | 7.15 |
| Intuitive Surgical Inc. | 137.09 |
| Medtronic PLC | 18.02 |
| UnitedHealth Group Inc. | 7.35 |
| P/FCFE, Sector | |
| Health Care Equipment & Services | 14.42 |
| P/FCFE, Industry | |
| Health Care | 22.83 |
Based on: 10-K (reporting date: 2022-03-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Abiomed Inc., historical P/FCFE calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 45,563,937 | 45,295,979 | 44,956,959 | 45,124,729 | 44,477,837 | 43,819,330 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 249,627) | 221,195) | 270,914) | 208,193) | 136,166) | 64,255) | |
| FCFE per share3 | 5.48 | 4.88 | 6.03 | 4.61 | 3.06 | 1.47 | |
| Share price1, 4 | 235.75 | 280.00 | 196.32 | 262.64 | 394.46 | 135.88 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 43.03 | 57.34 | 32.58 | 56.93 | 128.85 | 92.66 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Abbott Laboratories | 26.11 | 24.52 | 38.42 | — | — | — | |
| Elevance Health Inc. | 14.26 | 11.07 | 7.75 | — | — | — | |
| Intuitive Surgical Inc. | 89.67 | 58.39 | 81.15 | — | — | — | |
| Medtronic PLC | 19.71 | 38.91 | 23.06 | — | — | — | |
| UnitedHealth Group Inc. | 12.57 | 20.11 | 13.93 | — | — | — | |
| P/FCFE, Sector | |||||||
| Health Care Equipment & Services | 16.47 | 22.14 | — | — | — | — | |
| P/FCFE, Industry | |||||||
| Health Care | 18.40 | 17.94 | — | — | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 Data adjusted for splits and stock dividends.
3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 249,627,000 ÷ 45,563,937 = 5.48
4 Closing price as at the filing date of Abiomed Inc. Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 235.75 ÷ 5.48 = 43.03
6 Click competitor name to see calculations.
- Share Price
- The share price experienced significant fluctuations over the analyzed period. Starting at $135.88 in 2017, it surged sharply to a peak of $394.46 in 2018. Following this peak, the price declined to $262.64 in 2019 and continued a downward trend to $196.32 by 2020. In 2021, the price partially recovered to $280 but then decreased to $235.75 in 2022. Overall, the share price showed high volatility with an initial strong increase followed by a decline and moderate recovery.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share demonstrated a consistent upward trend over the period. It began at $1.47 in 2017 and more than doubled to $3.06 in 2018. This growth continued steadily, reaching $4.61 in 2019 and peaking at $6.03 in 2020. After 2020, the FCFE per share declined slightly to $4.88 in 2021 but rebounded to $5.48 in 2022. This pattern indicates an overall improvement in the company’s capacity to generate free cash flow attributed to equity holders, albeit with some fluctuations in the later years.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio varied considerably during the period. It began relatively high at 92.66 in 2017, increased to 128.85 in 2018, reflecting possibly an overvaluation relative to free cash flow. Then it dropped sharply to 56.93 in 2019 and further to 32.58 in 2020, suggesting a correcting valuation or improving cash flow. In 2021, the ratio rose again to 57.34, indicating a higher share price relative to FCFE, before decreasing to 43.03 in 2022. These fluctuations imply changing market perceptions about the company’s cash flow performance or valuation levels.