Viemed Healthcare Inc VMD

VMD at 4x adj. EBITDA versus indebted APR at 7x adj. EBITDA

[stockfy]

VMD's main competitors are Lincare (owned by Linde AG) and Apria Healthcare (APR).
 

APR's top line YoY growth in 2021 was only 4%.
 

For comparison, VMD's top line YoY growth for its core business in 2021 is 11%.
 

Indebted APR was acquired a couple of months ago for a total transaction value of $1.6 billion including its debt:

https://www.pymnts.com/acquisitions/2022/healthcare-firm-owens-minor-buys-apria-for-1-6b/


https://www.homecaremag.com/news/owens-minor-acquire-apria

 

According to APR's guidance, adj. EBITDA in 2021 is about $230 million.
 

Therefore, indebted APR with only 4% YoY growth was acquired for 7 times its adj. EBITDA.

For comparison, VMD has a net cash position of $24 million, announces 11% YoY growth and its Enterprise Value at $4 per share is only 4 times its adj. EBITDA.

To sum it up, VMD is dirt-cheap and a takeover target.

 

[Tropicalsun]

stockfy, will take your word on APR numbers. I think I heard Viemeds cash position was closer to 29 million all in according to Todd on todays call. Management probably is aware of the takeover possibility, hell maybe they want that, who really knows. They sold sleep management to PHM. Does anyone know if the company has a poison pill? Thinking outloud here, the timing of this new NCIB has some

[LongTerm3]

This was last year: Index membership and rankings are determined using total market capitalizations as of reconstitution rank date. Market capitalization (USD as of reconstitution rank date) As of May 7, 2021

[stockfy]

tropicalsun, you can confirm all about indebted APR and its 4% top line YoY growth below: https://www.globenewswire.com/news-release/2021/11/04/2328043/4031/en/Apria-Announces-Financial-Results-for-Third-Quarter-2021.html

[stockfy]

Tropicalsun, VMD should now be above US$10 given that VMD has much stronger revenue YoY growth for its core business (exclude COVID-19 revenue) and a much healthier balance sheet than acquired APR.

[besttobe]

Stockfy wrote "Tropicalsun, VMD should now be above US$10 " Maybe in your eyes, but the market certainly doesn't feel that way. 11% growth for a micro cap with approx 100 mil in revenue is pretty slow growth. Thats reality and the the reality reflected in the S/P. The only thing stopping this thing from really tanking is the buyback.  GLTA

[Tropicalsun]

stockfy, you may very well be correct about the SP. However the reality is, that it is not, we are trading at $6 and change. As far as takever, that is a possibility as well. However until someone steps up to the plate with a real offer, that is just opinion based speculation. Any stock is only really worth what an individual would pay for that stock on any given day. VMD may be under valued

[LongTerm3]

The stock is out of favor at this time, because it was oversold, and people got hurt. With the buyback, and earnings in about 5 or 6 weeks, we should see a big change. I think the company has turned the corner with Covid. They grew this company into many other areas while Covid was happening for two years. That is amazing.

[Tropicalsun]

LongTerm3, I respect your opinion and I hope you are correct. Yes from listening to the calls the company has diversified the business, when the financial statements reflect the growth, hopefully the markets and the investment community will take notice.

[LongTerm3]

The company is financially stronger, bigger, with less debt than two years ago. They have huge assets in cash, buildings (three), and equipment. They have never been short vents.  Below is some of there divisions: Viemed Staffing Viemed Behavoral Health 49% of Solvent Services 5% equity in VeruStat, Inc This was all built up during Covid.