Bruce Campbell (2) Viemed Healthcare VMD-T PAST TOP PICK Mar 25, 2021

There is a lot of growth in this name. They had a bit of a windfall selling equipment during COVID. There is a lot of positive news coming out about their in-home care. There are a lot of positive drivers in this business.

In-home, non-invasive respiratory devices. Grows organically and by acquisition. Earnings beat for second consecutive quarter. Awesome management. Growing phenomenally, projected 25% topline growth over next year. Profitable, big cash balance, buying back stock. Discount to peers. NASDAQ listing should generate interest. (Analysts’ price target is $15.01)

Their ventilator business has grown in recent years tough they struggled to access Covid patients in hospitals. They had great revenues in their last quarter. They're expanding operations as they enter new markets. EBITDA was lower than expected, so shares pulled back. They trade at half the PE of their peers. The CEO is one of the biggest shareholders. (Analysts’ price target is $15.86)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

VMD EPS of 4c beat estimates of 3.5c; Revenue of $39.6M beat estimates of $38.5M. EBITDA of $8.3M beat estimates by 3%. Sales rose 23%; EPS though was flat year over year. EBITDA rose 15%. 2Q  Guidance was maintained and another acquisition was announced. Cash rose to $23.5M (no debt). We would consider it a good quarter. 
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(A Top Pick Jun 01/22, Up 73%)

Excellent performance in stock reflective of demand for healthcare tech.
Continues to hold.
Happy with results.

(A Top Pick Jun 01/22, Up 51%)

Their numbers continues to soar, but shares fell last year over concerns that the hit diet drugs will impact them. But business continues to bs strong as they grow revenues and earnings. Trades at a reasonable PE.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $0.04 missed estimates of $0.07 and revenues of $50.6M beat estimates of $49.9M. Revenues grew by 28% year-over-year, and its Adjusted EBITDA grew by 21%. It has no debt and management expects to generate revenues of $53.8M to $54.8M for Q2 2024. It was cash flow negative for the quarter, but its margins are good and it has a strong balance sheet. For a company growing fast with good profit margins, it is only trading at 20X forward earnings, but it is highly volatile and a small name. We consider the results overall decent, but investors are likely not pleased with its earnings miss.
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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Momentum has been improving recently and VMD is up 10% year-to-date. Recent earnings were positive with the stock beating EPS and revenue estimates and continuing to grow positively. The stock continues to look good fundamentally with positive, growing free cash flows and a net cah balance. Its valuation at 25x forward earnings is also not bad given the strong earnings and revenue growth expected over the next few years. We think it is be worth holding as it is a fundamentally sound business in our opinion. 
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