Buy, Sell or Hold: Akumin Inc. (AKU-T) — Stock Predictions at Stockchase

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Akumin Inc. (AKU-T)

TSE:AKU

0.53

0.02 (3.92%) 1d

This week’s new 52-week lows… (Dec 12-18)

Investor Insights

This summary was created by AI, based on 1 opinions in the last 12 months.

Akumin Inc. (AKU-T) appears to be a company that thrived during the boom of the dot-com era, leveraging the demand for its services at that time. However, as internet speeds have dramatically improved, the necessity for its services has diminished, leading to concerns about its long-term relevance and sustainability. The rapid technological advancements have rendered some aspects of Akumin's offerings less critical in today's market, potentially impacting its growth trajectory. Experts note that while it once had a strong position, current trends suggest a challenging future unless it adapts to the changing landscape. This shift has led to a more cautious outlook among analysts and investors alike regarding the company's prospects.

Consensus

Negative

Valuation

Overvalued

Similar

CTLT,CTL

COMMENT

It was popular in the dot com years. Its service isn't as needed now since Internet speed is way better.

DON'T BUY

Challenge was that to get this business where it is, they had to do a lot of acquisitions and take on a lot of debt. Tough environment for companies with debt, stock's under pressure. Follows it. Great business, good growth. Don't buy here.

HOLD

A frustrating position. Imaging clinics in the US. Performing well and acquiring clinics. Higher margins than peers. Positive news has come out, so the rest of the year should be better, closing the gap in the valuation. Generating free cashflow and paying down debt. Alzheimer's drug will push organic demand for scans.

BUY

A past top pick. It's the second-largest US imaging diagnostics clinic operator. They have a large presence in Texas and Florida which are reopening. AKU is rebounding from last year, when they kept margins strong. Revenue growth has rebounded well as well as volume growth. They weathered 2020 lockdowns well. Their last quarter changed accounting practices, which confused the street, but that's straightened out now. A positive outlook.

PAST TOP PICK

(A Top Pick Jan 22/20, Up 3%) Operates MRI clinics in the US. Hurt by pandemic in organic revenue growth, but managed well through it. Still a great story.

TOP PICK

At an inflection point. Technology, right clinics, and right billing cycle to drive free cashflow, which is the lifeblood to being a consolidation play. US institutions are interested in it. Demographics are in their favour, a massive tailwind. No dividend. (Analysts’ price target is $5.24)

PAST TOP PICK

(A Top Pick Oct 15/19, Up 20%) Operates MRI clinics in the US. Now second largest in the US. Can consolidate and grow. Substantial margins in the mid-20s. Impressive management team. Still likes it at these levels.

BUY

The company has MRI clinics in the US. It has over 100 clinics now. He thinks it is a fantastic buy at this level. The challenge is their balance sheet, because of their unfortunate timing of an acquisition just as the pandemic hit. He thinks they will manage it just fine. Margins will be strong when things return to normal for this small cap.

HOLD

He's long owned this. They run diagnostic imaging centres in the U.S. They charge half what hospitals do, which is attracting businesses. AKU has one big competitor in the U.S. that is twice the size of AKU. He believes the competitor will one day buy AKU. He'll wait 18 months for this take-out to happen.

TOP PICK

Investors don't recognize its value. It can grow inorganically in this environment. A solid business that operates medical MRI clinics, the number two player in the U.S. Payout rates have been very stable. Free cash flow will turn around this year. This should do well this year and boasts a lot of upside. Also, a cheap valuation. (Analysts’ price target is $5.69)

TOP PICK

He picked this last time. It's a great growth-by-acquisition story, buying up medical scanning businesses in Florida and Texas. They're expanding margins to around 25%. They reported a fine quarter lately. Many people are getting MRI scans; hospitals charge a lot for this and insurers are encouraging insurance holders to get these scans in hospitals. AKU is are consolidating what they have now, and they will continue to buy more companies in the years to come. (Analysts’ price target is $7.52)

TOP PICK

Management team has done a good job in MRI and CT scan clinics in the US. Pretty good market with higher margins than closest competitor. Point of inflection to becoming a big consolidator. No dividend. (Analysts’ price target is $5.92)

TOP PICK

They do diagnostic imaging work all in the US, though it's a Canadian company. They're #2 in American diganostic imaging centres. They keep growing. He only wishes the CEO would speak to investors more. (Analysts’ price target is $7.83)

TOP PICK

It hasn't been getting love. Its business is in the U.S. They've executed very well. They operate MRI and CT scan clinics, as one of the biggest players in the States. They're in a 20% EBITDA business. Aging demographics are a huge tailwind, and Americans prefer going to clinics than pricier hospitals. (Analysts’ price target is $5.92)

BUY

A longtime favourite of his. AKU is a consolidator of imaging centres (x-rays, CAT scans, MRIs) at outpatient centres. There are bigger competitors, but they're trading at a higher 9x multiple than AKU. AKU trades around 8x. Today's acquisition was at 7x and addeds $30 million more EBITDA. There's still lots of consolidation to go in the U.S. So AKU can keep buying. Lots of runway ahead.

Showing 1 to 15 of 17 entries

Akumin Inc.(AKU-T) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Akumin Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Akumin Inc.(AKU-T) Frequently Asked Questions

What is Akumin Inc. stock symbol?

Akumin Inc. is a Canadian stock, trading under the symbol AKU-T on the Toronto Stock Exchange (AKU-CT). It is usually referred to as TSX:AKU or AKU-T

Is Akumin Inc. a buy or a sell?

In the last year, there was no coverage of Akumin Inc. published on Stockchase.

Is Akumin Inc. a good investment or a top pick?

Akumin Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Akumin Inc..

Why is Akumin Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Akumin Inc. worth watching?

0 stock analysts on Stockchase covered Akumin Inc. In the last year. It is a trending stock that is worth watching.

What is Akumin Inc. stock price?

On 2024-02-01, Akumin Inc. (AKU-T) stock closed at a price of $0.53.

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Akumin Inc. (AKU-T)

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Akumin Inc.(AKU-T) Rating

Akumin Inc.(AKU-T) Frequently Asked Questions

What is Akumin Inc. stock symbol?

Is Akumin Inc. a buy or a sell?

Is Akumin Inc. a good investment or a top pick?

Why is Akumin Inc. stock dropping?

Is Akumin Inc. worth watching?

What is Akumin Inc. stock price?

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