HNGR

Hanger Inc

Healthcare


Presented:05/29/2020
Price:$18.36
Cap:$0.69B
Current Price:$18.72
Cap:$0.73B

Presented

Date05/29/2020
Price$18.36
Market Cap$0.69B
Ent Value$1.17B
P/E Ratio37.99x
Book ValueN/A
Div Yield0%
Shares O/S37.79M
Ave Daily Vol298,997
Short Int4.20%

Current

Price$18.72
Market Cap$0.73B
Hanger, Inc. provides orthotic and prosthetic patient care products and services. The company operates through the following segments: Patient Care and Products & Services. The Patient Care segment comprises of the Hanger Clinic, Cares, Dosteon, other O&P businesses and its contracting network management business. The Products & Services segment comprises of distribution services and therapeutic solutions businesses. Hanger was founded by James Edward Hanger in 1861 and is headquartered in Austin, TX.

Publicly traded companies mentioned herein: Hanger Inc (HNGR)

Highlights

The presenter is long shares of Hanger Inc (HNGR), the market leader in orthotics and prosthetics (O&P) that was founded in 1861 to help Civil War amputees. Due to insufficient accounting infrastructure and inappropriate behavior by employees, HNGR was unable to file its financial statements from Q3’2014 – Q4’2017. This caused the stock to narrowly avoid delisting and the company was forced into a defensive mode as it worked through audits and rebuilt its accounting infrastructure. Following the audit, HNGR had been making strides in its effort to return to a more offensive mode, increasing its marketing and M&A activity. The stock rebounded to a ~$27 share price by late 2019 but has since traded down ~33%, in line with other healthcare facility companies in the wake of the COVID-19 pandemic. At this point, he views the current ~$18 share price (~9x pre-COVID-19 guidance) as undervalued and highlights the opportunity in front of HNGR as it continues to improve its operations, accelerate M&A activity, and delever. 

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Idea Discussion

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