Viemed Healthcare Inc (VMD.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:VMD • CA92663R1055
10.45 CAD
+0.29 (+2.85%)
Last: Dec 21, 2023, 07:00 PM
Overall VMD gets a fundamental rating of 7 out of 10. We evaluated VMD against 14 industry peers in the Health Care Providers & Services industry. VMD has an excellent financial health rating, but there are some minor concerns on its profitability. VMD is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make VMD a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- VMD had positive earnings in the past year.
- In the past year VMD had a positive cash flow from operations.
1.2 Ratios
- With an excellent Return On Assets value of 6.16%, VMD belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 8.47%, VMD is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 7.90%, VMD belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for VMD is above the industry average of 7.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 8.47% | ||
| ROIC | 7.9% |
ROA(3y)13.66%
ROA(5y)13.79%
ROE(3y)18.18%
ROE(5y)20.63%
ROIC(3y)11.36%
ROIC(5y)13.33%
1.3 Margins
- VMD has a Profit Margin of 5.42%. This is amongst the best in the industry. VMD outperforms 90.48% of its industry peers.
- VMD's Profit Margin has declined in the last couple of years.
- VMD has a Operating Margin of 7.73%. This is amongst the best in the industry. VMD outperforms 90.48% of its industry peers.
- VMD's Operating Margin has declined in the last couple of years.
- VMD has a better Gross Margin (61.00%) than 90.48% of its industry peers.
- VMD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.73% | ||
| PM (TTM) | 5.42% | ||
| GM | 61% |
OM growth 3Y-18.23%
OM growth 5Y-20.06%
PM growth 3Y-24.99%
PM growth 5Y-23.88%
GM growth 3Y-4.35%
GM growth 5Y-3.72%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VMD is creating some value.
- Compared to 1 year ago, VMD has less shares outstanding
- The debt/assets ratio for VMD has been reduced compared to a year ago.
2.2 Solvency
- VMD has an Altman-Z score of 6.66. This indicates that VMD is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.66, VMD belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
- VMD has a debt to FCF ratio of 0.65. This is a very positive value and a sign of high solvency as it would only need 0.65 years to pay back of all of its debts.
- VMD's Debt to FCF ratio of 0.65 is amongst the best of the industry. VMD outperforms 100.00% of its industry peers.
- A Debt/Equity ratio of 0.08 indicates that VMD is not too dependend on debt financing.
- The Debt to Equity ratio of VMD (0.08) is better than 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.65 | ||
| Altman-Z | 6.66 |
ROIC/WACC0.94
WACC8.43%
2.3 Liquidity
- VMD has a Current Ratio of 1.14. This is a normal value and indicates that VMD is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.14, VMD perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
- A Quick Ratio of 0.99 indicates that VMD may have some problems paying its short term obligations.
- VMD has a Quick ratio (0.99) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 21.05% over the past year.
- Measured over the past years, VMD shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.17% on average per year.
- VMD shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.38%.
- Measured over the past years, VMD shows a very strong growth in Revenue. The Revenue has been growing by 24.23% on average per year.
EPS 1Y (TTM)21.05%
EPS 3Y-13.28%
EPS 5Y-6.17%
EPS Q2Q%133.33%
Revenue 1Y (TTM)27.38%
Revenue growth 3Y20.01%
Revenue growth 5Y24.23%
Sales Q2Q%38.14%
3.2 Future
- VMD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 54.71% yearly.
- The Revenue is expected to grow by 21.44% on average over the next years. This is a very strong growth
EPS Next Y75.07%
EPS Next 2Y65.14%
EPS Next 3Y54.71%
EPS Next 5YN/A
Revenue Next Year31.41%
Revenue Next 2Y25.78%
Revenue Next 3Y21.44%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- VMD is valuated quite expensively with a Price/Earnings ratio of 34.83.
- Based on the Price/Earnings ratio, VMD is valued cheaper than 80.95% of the companies in the same industry.
- When comparing the Price/Earnings ratio of VMD to the average of the S&P500 Index (28.30), we can say VMD is valued slightly more expensively.
- With a Price/Forward Earnings ratio of 19.28, VMD is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, VMD is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- VMD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.83 | ||
| Fwd PE | 19.28 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VMD is valued a bit cheaper than 76.19% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as VMD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.11 | ||
| EV/EBITDA | 9.09 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of VMD may justify a higher PE ratio.
- A more expensive valuation may be justified as VMD's earnings are expected to grow with 54.71% in the coming years.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y65.14%
EPS Next 3Y54.71%
5. Dividend
5.1 Amount
- VMD does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Viemed Healthcare Inc / VMD.CA FAQ
What is the ChartMill fundamental rating of Viemed Healthcare Inc (VMD.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to VMD.CA.
Can you provide the valuation status for Viemed Healthcare Inc?
ChartMill assigns a valuation rating of 5 / 10 to Viemed Healthcare Inc (VMD.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for Viemed Healthcare Inc?
Viemed Healthcare Inc (VMD.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of Viemed Healthcare Inc (VMD.CA) stock?
The Price/Earnings (PE) ratio for Viemed Healthcare Inc (VMD.CA) is 34.83 and the Price/Book (PB) ratio is 2.79.
What is the earnings growth outlook for Viemed Healthcare Inc?
The Earnings per Share (EPS) of Viemed Healthcare Inc (VMD.CA) is expected to grow by 75.07% in the next year.