Abaxis (ABAX) markets its products under three categories: instruments, consumables, and other products. The instruments category includes chemistry analyzers, hematology instruments, VSpro specialty analyzers, and urinalysis instruments.
The consumables category includes reagent discs, hematology reagent kits, VSpro specialty cartridges, urinalysis, and rapid tests. The other products category includes products that use the Orbos process and extended maintenance agreements.
Product category performance
In fiscal 3Q18, Abaxis generated revenue of $10.4 million from the sales of instruments compared to $9.3 million in fiscal 3Q17. Revenue from consumables sales was $45.4 million in fiscal 3Q18 compared to $40.3 million in fiscal 3Q17. Revenue from its other products category was $3.7 million in fiscal 3Q18 compared to $3 million in fiscal 3Q17.
From January 3, 2018, to February 23, 2018, Abaxis’s share price rose 37%. In comparison, the share prices of peers Angio Dynamics (ANGO), Halyard Health (HYH), and Merck & Co. (MRK) generated returns of 3%, 0.8%, and -2.3%, respectively, for their shareholders.
A strong and well-diversified product portfolio and sales on a global scale have helped Abaxis to garner strong investor interest compared to its peers. At present, Abaxis boasts attractive valuation metrics. The company’s price-to-sales ratio stands at 6.47, while its price-to-free-cash-flow ratio stands at 54.
The company has a gross margin of 54% and a net margin of 10.5%. Abaxis’s return on assets, return on equity, and return on investment stand at 7.8%, 9%, and 9.8%, respectively.
In the next part of the series, we’ll take a look at the financial performance of Abaxis.