Latest news with #LMAT
Yahoo
3 days ago
- Business
- Yahoo
LeMaitre Vascular, Inc.'s (NASDAQ:LMAT) Intrinsic Value Is Potentially 17% Below Its Share Price
Using the 2 Stage Free Cash Flow to Equity, LeMaitre Vascular fair value estimate is US$67.98 LeMaitre Vascular's US$82.20 share price signals that it might be 21% overvalued Analyst price target for LMAT is US$105, which is 54% above our fair value estimate In this article we are going to estimate the intrinsic value of LeMaitre Vascular, Inc. (NASDAQ:LMAT) by taking the forecast future cash flows of the company and discounting them back to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$50.0m US$58.8m US$71.3m US$67.4m US$74.8m US$78.9m US$82.6m US$86.0m US$89.3m US$92.4m Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x2 Analyst x1 Analyst x1 Est @ 5.43% Est @ 4.69% Est @ 4.16% Est @ 3.80% Est @ 3.54% Present Value ($, Millions) Discounted @ 7.4% US$46.5 US$50.9 US$57.5 US$50.6 US$52.3 US$51.3 US$50.0 US$48.5 US$46.8 US$45.2 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$500m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$92m× (1 + 2.9%) ÷ (7.4%– 2.9%) = US$2.1b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$2.1b÷ ( 1 + 7.4%)10= US$1.0b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$1.5b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$82.2, the company appears slightly overvalued at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at LeMaitre Vascular as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.4%, which is based on a levered beta of 1.036. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for LeMaitre Vascular Strength Earnings growth over the past year exceeded the industry. Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Medical Equipment market. Expensive based on P/E ratio and estimated fair value. Opportunity Annual earnings are forecast to grow for the next 3 years. Threat Annual earnings are forecast to grow slower than the American market. Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Why is the intrinsic value lower than the current share price? For LeMaitre Vascular, we've compiled three essential aspects you should further research: Risks: Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with LeMaitre Vascular , and understanding it should be part of your investment process. Future Earnings: How does LMAT's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Effettua l'accesso per consultare il tuo portafoglio
Yahoo
16-05-2025
- Business
- Yahoo
LMAT Q1 Earnings Call: Sales Growth Outpaces Expectations, Margin Pressures Addressed
Medical device company LeMaitre Vascular (NASDAQ:LMAT) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 12% year on year to $59.87 million. The company expects next quarter's revenue to be around $62.5 million, close to analysts' estimates. Its GAAP profit of $0.48 per share was 4.6% below analysts' consensus estimates. Is now the time to buy LMAT? Find out in our full research report (it's free). Revenue: $59.87 million vs analyst estimates of $57.75 million (12% year-on-year growth, 3.7% beat) EPS (GAAP): $0.48 vs analyst expectations of $0.50 (4.6% miss) Adjusted EBITDA: $16.78 million vs analyst estimates of $15.57 million (28% margin, 7.8% beat) The company lifted its revenue guidance for the full year to $245.5 million at the midpoint from $239.1 million, a 2.7% increase EPS (GAAP) guidance for the full year is $2.16 at the midpoint, missing analyst estimates by 3.5% Operating Margin: 21.1%, down from 22.2% in the same quarter last year Free Cash Flow Margin: 12.8%, up from 6.9% in the same quarter last year Organic Revenue rose 13% year on year (11% in the same quarter last year) Market Capitalization: $1.88 billion LeMaitre's first quarter results were driven by broad-based sales growth across all product categories and geographies, fueled by strong demand for vascular grafts and carotid shunts. Management attributed the outperformance to price increases, expansion of the direct sales force, and new international offices. CEO George LeMaitre emphasized, 'Growth was led by grafts up 17% and carotid shunts up 14%,' and noted record sales in every major product category. Looking ahead, management raised full-year revenue guidance, citing sustained sales momentum, the launch of new international offices, and recently secured regulatory approvals. While the company expects to benefit from a growing sales organization and upcoming product launches, management was cautious about potential margin headwinds from product mix and tariffs. CFO Dorian LeBlanc stated that moving away from the Elutia patch distribution agreement should improve organic growth and margins in the coming quarters. LeMaitre's management identified several operational and market drivers behind the quarter's results and discussed strategic moves to sustain momentum. Direct Sales Force Expansion: The company increased its on-payroll sales representatives to 164, aiming for 170 by year-end. Management highlighted that direct sales are their primary growth engine, with new hires expected to support continued market penetration. International Office Openings: New sales offices in Switzerland, Portugal, and soon the Czech Republic are expected to streamline distribution and improve sales in these regions. The Zurich office, for example, is designed to reduce customs complexity for Swiss hospitals, and direct offices have historically led to higher sales performance. Autograft Regulatory Progress: The company received a Medical Device Regulation (MDR) CE mark for its Artegraft product, enabling a European launch. Artegraft, previously the company's largest U.S. product, is now positioned for growth internationally, with additional approvals anticipated in Australia, Canada, Singapore, and Korea. Product Mix and Margin Impact: A shift toward higher sales in the graft category, which carries a lower gross margin than other products, contributed to a slight year-on-year decrease in operating margin. Management explained that price increases and reduced inventory scrap partially offset this impact. Elutia Patch Exit: LeMaitre exited its distribution agreement with Elutia to focus on its own biologics. This move is expected to improve organic growth rates and gross margins, as the discontinued product had been declining and carried lower margins than proprietary offerings. Management expects continued revenue growth, supported by an expanded sales force, new product approvals, and a broader international presence. However, product mix, tariffs, and competitive dynamics may create margin variability in upcoming quarters. Sales Force Investments: The addition of new sales representatives and managers is anticipated to drive higher revenues, with management indicating that new hires reach productivity levels comparable to veteran employees more quickly than in previous years. Tariff and Trade Risks: While LeMaitre manufactures all products in the United States, potential retaliatory tariffs remain a risk for international sales. Management believes they can mitigate much of the impact through price increases and low substitution risk due to niche product offerings. Product Launches and Regulatory Approvals: New product launches, such as the European rollout of Artegraft and expected approvals for RestoreFlow allografts in Ireland or Germany, are likely to support revenue growth and help offset potential margin headwinds from product mix changes. Suraj Kalia (Oppenheimer): Asked what gives management confidence to raise guidance given global uncertainties such as tariffs. CEO George LeMaitre cited stronger-than-expected Q1 results, effective price increases, and the positive impact of exiting the Elutia distribution. Rick Wise (Stifel): Inquired about the sustainability of price and volume growth. Management explained that Q1 saw a 9% price increase and 4% unit growth, but cautioned that future quarters may not maintain the same pace. Michael Saccone (Jefferies): Sought clarification on margin pressures. Management attributed margin contraction to higher sales in grafts, which have lower corporate-average margins, and highlighted that product mix shifts were a primary factor. Frank Tarkinen (Lake Street): Questioned when the expanded sales force would contribute to operating leverage. CFO Dorian LeBlanc noted that new reps ramp up productivity faster than in the past, and sales ramp and margin improvement are expected in the second half of the year. Brett Fishbin (KeyBanc): Asked about the impact of tariffs and the rationale for discontinuing the Elutia agreement. Management confirmed that expected tariff costs and mitigation strategies are factored into guidance, and explained that exiting Elutia removes a declining product and should support organic growth. In the coming quarters, the StockStory team will be monitoring (1) the impact of new direct sales offices and additional sales hires on revenue growth, (2) the European launch and adoption of Artegraft following regulatory approval, and (3) progress toward RestoreFlow allograft approvals in key European markets. Additionally, we will track management's ability to navigate product mix challenges and tariff risks while maintaining or expanding margins. LeMaitre currently trades at a forward P/E ratio of 35.9×. At this valuation, is it a buy or sell post earnings? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Business Insider
03-05-2025
- Business
- Business Insider
Lemaitre Vascular (LMAT) Receives a Buy from Roth MKM
In a report released today, Jason Wittes from Roth MKM maintained a Buy rating on Lemaitre Vascular (LMAT – Research Report), with a price target of $106.00. The company's shares closed today at $78.70. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. According to TipRanks, Wittes is a 3-star analyst with an average return of 2.3% and a 46.18% success rate. Wittes covers the Healthcare sector, focusing on stocks such as Accuray, Globus Medical, and Allurion Technologies. Lemaitre Vascular has an analyst consensus of Moderate Buy, with a price target consensus of $107.29, implying a 36.33% upside from current levels. In a report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $115.00 price target. The company has a one-year high of $109.58 and a one-year low of $69.82. Currently, Lemaitre Vascular has an average volume of 225.9K. Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LMAT in relation to earlier this year. Most recently, in March 2025, Trent Kamke, the Senior V. P., Operations of LMAT sold 6,529.00 shares for a total of $525,015.67.
Yahoo
28-04-2025
- Business
- Yahoo
1 Profitable Stock with Impressive Fundamentals and 2 to Steer Clear Of
While profitability is essential, it doesn't guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity". Not all profitable companies are created equal, and that's why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here is one profitable company that leverages its financial strength to beat the competition and two that may face some trouble. Trailing 12-Month GAAP Operating Margin: 5.1% Formerly known as Brunswick-Balke-Collender Company, Brunswick (NYSE: BC) is a designer and manufacturer of recreational marine products, including boats, engines, and marine parts. Why Do We Avoid BC? Annual sales declines of 13.8% for the past two years show its products and services struggled to connect with the market Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 2.8 percentage points over the next year Eroding returns on capital suggest its historical profit centers are aging At $46.70 per share, Brunswick trades at 10.7x forward price-to-earnings. If you're considering BC for your portfolio, see our FREE research report to learn more. Trailing 12-Month GAAP Operating Margin: 23.8% Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions. Why Does LMAT Give Us Pause? Subscale operations are evident in its revenue base of $219.9 million, meaning it has fewer distribution channels than its larger rivals Free cash flow margin shrank by 7.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive LeMaitre is trading at $91.57 per share, or 42.3x forward price-to-earnings. To fully understand why you should be careful with LMAT, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: 36.2% Starting as a single salvage yard in California in 1982, Copart (NASDAQ:CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters. Why Will CPRT Outperform? Annual revenue growth of 15.2% over the past five years was outstanding, reflecting market share gains this cycle Incremental sales significantly boosted profitability as its annual earnings per share growth of 18.3% over the last five years outstripped its revenue performance Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy Copart's stock price of $60.50 implies a valuation ratio of 36.8x forward price-to-earnings. Is now a good time to buy? See for yourself in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
2 Reasons to Avoid LMAT and 1 Stock to Buy Instead
Over the past six months, LeMaitre's shares (currently trading at $83.18) have posted a disappointing 10.5% loss while the S&P 500 was down 4.1%. This may have investors wondering how to approach the situation. Is there a buying opportunity in LeMaitre, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it's free. Even with the cheaper entry price, we don't have much confidence in LeMaitre. Here are two reasons why you should be careful with LMAT and a stock we'd rather own. Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions. Larger companies benefit from economies of scale, where fixed costs like infrastructure, technology, and administration are spread over a higher volume of goods or services, reducing the cost per unit. Scale can also lead to bargaining power with suppliers, greater brand recognition, and more investment firepower. A virtuous cycle can ensue if a scaled company plays its cards right. With just $219.9 million in revenue over the past 12 months, LeMaitre is a small company in an industry where scale matters. This makes it difficult to build trust with customers because healthcare is heavily regulated, complex, and resource-intensive. If you've followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. As you can see below, LeMaitre's margin dropped by 7.7 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. LeMaitre's free cash flow margin for the trailing 12 months was 16.9%. LeMaitre isn't a terrible business, but it doesn't pass our bar. After the recent drawdown, the stock trades at 38.3× forward price-to-earnings (or $83.18 per share). This valuation tells us it's a bit of a market darling with a lot of good news priced in - we think there are better investment opportunities out there. We'd suggest looking at the most entrenched endpoint security platform on the market. The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we're zeroing in on the stocks that could benefit immensely. Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
