Abiomed, Inc. (NASDAQ:ABMD): A Fundamentally Attractive Investment

Abiomed, Inc. (NASDAQ:ABMD) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ABMD, it is a company with great financial health as well as a an impressive track record of performance. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Abiomed here.

Outstanding track record with flawless balance sheet

Over the past year, ABMD has grown its earnings by 56%, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 26%. which is an notable feat for the company. ABMD's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. Investors should not worry about ABMD’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a US$8.0b market cap company. ABMD has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

NasdaqGS:ABMD Income Statement, September 29th 2019

Next Steps:

For Abiomed, there are three important factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for ABMD’s future growth? Take a look at our free research report of analyst consensus for ABMD’s outlook.

2. Valuation: What is ABMD worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ABMD is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ABMD? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.