MOVE SW

Medacta Group SA

Healthcare


Presented:02/28/2020
Price:CHF75.40
Cap:$1.57B
Current Price:CHF121.60
Cap:$2.52B

Presented

Date02/28/2020
PriceCHF75.40
Market Cap$1.57B
Ent Value$2.00B
P/E RatioN/A
Book ValueCHF5.85
Div Yield0%
Shares O/S20.00M
Ave Daily Vol52,182
Short IntN/A

Current

PriceCHF121.60
Market Cap$2.52B
Medacta Group SA engages in the development, manufacture, and distribution of orthopedic and neurosurgical medical devices. It offers personalized kinematic models and three-dimensional planning tools for use in hip, knee, shoulder, and spine procedures. The company was founded by Alberto Siccardi in 1999 and is headquartered in Castel San Pietro, Switzerland.

Publicly traded companies mentioned herein: Intuitive Surgical Inc (ISRG), Johnson & Johnson (JNJ), Medacta Group SA (MOVE SW), Smith & Nephew plc (SNN), Zimmer Biomet (ZBH) 

Highlights

The presenter is long shares of Medacta (MOVE SW), a $1.5B Swiss-based leading manufacturer of orthopedic implants, neurosurgical systems, and instrumentation. MOVE, a 2019 IPO, is a relatively unknown company. It currently trades at 4.6x sales but the presenter notes that double digit growers in medtech such as Intuitive Surgical (ISRG), normally trade at 10x sales. MOVE on the other hand only trades at a 10% premium to Zimmer, even though it’s growing 4x as fast, leading him to believe it warrants a bigger multiple. The presenter believes that once MOVE proves its credibility and implant revenue from new customers starts to flow through, MOVE should be valued closer to 10x sales and investors should experience a multiyear grower with a mid-teens CAGR. 

MOVE’s business is split 43% Europe, 30% North America, 21% Asia Pacific (primarily Australia and Japan) and 3% Other. MOVE is competing directly with Johnson and Johnson (JNJ) and is making strides to expand its presence in the US market (e.g., building up a salesforce in California) which currently has low penetration. 

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