Cardiovascular Systems, Inc. – Value Analysis (NASDAQ:CSII) : August 15, 2017

Capitalcube gives Cardiovascular Systems, Inc. a score of 29.

Our analysis is based on comparing Cardiovascular Systems, Inc. with the following peers – AngioDynamics, Inc., LeMaitre Vascular, Inc., Endologix, Inc., Boston Scientific Corporation, Merit Medical Systems, Inc., Medtronic plc and Johnson & Johnson (ANGO-US, LMAT-US, ELGX-US, BSX-US, MMSI-US, MDT-US and JNJ-US).

Investment Outlook

Cardiovascular Systems, Inc. has a fundamental score of 29 and has a relative valuation of OVERVALUED.

Fundamental Score

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Company Overview

  • With respect to peers, relative outperformance over the last year is in contrast to the more recent underperformance.
  • It currently trades at a Price/Book ratio of (8.52).
  • CSII-US‘s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful to make this analysis between operating advantage (ROE) and growth expectations (as suggested by P/E or P/EBITDA).
  • CSII-US has relatively low net profit margins while its asset efficiency is relatively high.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • CSII-US‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • Company appears to give away relatively high gross margins to relatively high operating costs suggesting a differentiated product portfolio with low pre-tax margins relative to peers.
  • CSII-US‘s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful for an analysis between historical growth (using annualized three-year revenue growth) and investor growth expectations (as suggested by P/E or Price/EBITDA) .
  • The company’s relatively low level of capital investment and below peer median returns on capital suggest that the company is in maintenance mode.

Access our research and ratings on Cardiovascular Systems, Inc.

Leverage & Liquidity

  • Of the 7 chosen peers for the company, only 6 of the stocks have an outstanding debt balance. Companies with no debt include LMAT-US.

CSII-US has moved to a Constrained from an Quick & Able profile at the prior year-end.

Access the detailed analysis for Cardiovascular Systems, Inc.

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
AngioDynamics, Inc. 15.97 2.15 8.88 28.37
LeMaitre Vascular, Inc. 0 7.25 1166.86 999
Endologix, Inc. 44.05 2.82 -2.95 -21.58
Boston Scientific Corporation 13.45 0.75 5.87 17.49
Merit Medical Systems, Inc. 11.44 2.57 3.75 30.65
Medtronic plc 25.02 1.75 5.91 20.84
Johnson & Johnson 9.17 1.34 27.52 61.86
Cardiovascular Systems, Inc. N/A 4.26 0 N/A
Peer Median 13.45 2.36 5.91 28.37
Best In Class 9.17 7.25 1166.86 999

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Company Profile

Cardiovascular Systems, Inc. is a medical device company, which develops and sells devices for treating cardiovascular diseases. It focuses on developing and commercializing minimally invasive treatment solutions for vascular diseases. The company’s products such as diamondback 360° PAD system and the stealth 360° PAD system are catheter based platforms capable of treating a broad range of plaque types in leg arteries both above and below the knee. The company was founded in 2000 and is headquartered in St. Paul, MN.

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