VMD at US$4 trades 1x revenue and 5x the adj. EBITDADonmayne, your analysis about VMD is severely flawed and highly inaccurate.
For instance, you overplay the fact that two fund managers have sold VMD over the last months which has weighed on the stock performance. Many fund managers are myopic and grossly incompetent reporting below average returns almost every year and end up being laid off looking for a new job every few years. Which cave do you live in?
Meantime, you downplay or ignore VMD's strong fundamentals and super low key metrics that prove that VMD is grossly undervalued on absolute and relative valuation basis while also being a takeover tagret thanks to its fortress balance sheet and unique position in this segment of the healthcare industry.
fyi, VMD specializes in post-acute respiratory care services in North America and VMD is one of the top three providers of NIV and related services! VMD's main competitors are Lincare (owned by Linde AG) and Apria Healthcare (owned by Blackstone)!
As a reminder, VMD's Enterprise Value at US$4 is only 1 times this year's revenue and only 5 times this year's adj. EBITDA!
VMD does not need to grow its core business 40% to trade in line with the peers! Who told you this? Who told you that the peers grow their business 40%? Most healthcare names with healthcare equipment and services trade more than 4-5 times their revenue and more than 10 times their adj. EBITDA! And unlike VMD, many of them are unprofitable! Which cave do you live in?
On top of this, you downplay these facts:
1) VMD keeps growing its core business both YoY and sequentially despite the fact that COVID has not helped it at all:
"Net revenues attributable to the Company's core business for the quarter ended September 30, 2021 were $27.8 million, a new Company record, and an increase of $2.9 million, or 12%, over core business revenues reported for the comparable quarter ended September 30, 2020."
"Net revenues attributable to the core business were up approximately 6% from the second quarter of 2021."
2) VMD keeps hiring that is a strong indicator about the upcoming growth in the next fiscal year.