HAE

Haemonetics Corp

Healthcare


Presented:07/25/2017
Price:$39.90
Cap:$2.07B
Current Price:$75.19
Cap:$3.85B

Presented

Date07/25/2017
Price$39.90
Market Cap$2.07B
Ent Value$2.28B
P/E RatioN/A
Book Value$14.15
Div Yield0%
Shares O/S51.99M
Ave Daily Vol310,417
Short Int6.14%

Current

Price$75.19
Market Cap$3.85B
Haemonetics Corp. operates as a global healthcare company, which engages in the provision of products for processing, handling, and analysis of blood. Its products are divided into four categories: Plasma, Blood Center, Hospital, and Software Solutions. The Plasma product line includes plasma collection market for fractionation and the company's plasma products. The Blood Center product line offers blood collection market for transfusion and the company's blood center products. The Hospital product line provides transfusion market for hospitals and the company's hospital products. The Software Solutions deals with the software products and services. The company was founded by Allen Latham, Jr. in 1971 and is headquartered in Braintree, MA.

Publicly traded companies mentioned herein: Baxter International Inc (BAX), Grifols SA (GRFS), Haemonetics Corporation (HAE)

Highlights

The presenter is long shares of Haemonetics Corporation (HAE) at $39 and believes the successful turnaround of the company is well underway following years of mismanagement. HAE is a leader in each of its three main business units: Plasma, 46% of [fiscal 2017] revenue; Hospital, 19% of revenue; and Blood Center, 35% of revenue; and 85% of total revenue ($886mm F’17) is from the sale of disposables. He likes HAE’s new management team, led by CEO Christopher Simon (joined in May 2016) and CFO Bill Burke (started in August 2016); and noted that their compensation is tied to EBIT and aligned with shareholders’ interests. If operating margins can improve from 13% to 20% and management can execute over the next 3-4 years, the stock should trade up to $70+ over the next 2.5-3 years. This equates to 20x the presenter’s $3.50 per share earnings forecast for fiscal 2021, and represents 80% upside.

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Idea Discussion

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