All posts

Patient Home Monitoring is "Significantly Undervalued", says Mackie

Following Patient Home Monitoring’s (Patient Home Monitoring Stock Quote, Chart, News: TSXV:PHM) first quarter results, Mackie Research Capital analyst Russell Stanley continues to believes the company’s stock is cheap.

Today, PHM reported its first quarter results. The company posted revenue of $40.2 million, adjusted EBITDA of $7.7 million and operating cash flow (before working capital) of $9.1 million or $0.03 per share.

“The first quarter results show yet another record in top line revenues for the company and a sequential increase in our margins as we continue to integrate our business units,” said CEO Casey Hoyt in a preview of the result, released Wednesday. “We will certainly see the benefits of our organic growth strategy over time as we continue to make significant operational improvements in our business. We continue our strategy to focus on the high margin products while eliminating products that have reached the end of their profitability life cycle. With our organic growth strategy, we are more focused on profits and will reduce our focus on revenues.”

Stanley says the results were essentially in-line with his expectations, but were important because they cleared up some confusion about the company’s current cash and debt positions. He says the rapid pace of PHM’s acquisitions has created some uncertainty about these numbers, but the quarter end positions of cash and equivalents of $24.3 million, compared to total debt of $13.2 million, should be regarded as a strong balance sheet, he says.

Overall, the analyst was happy with the quarter.

“While adjusted EBITDA was slightly below management’s preliminary estimate, it was in line with our forecast,” says Stanley. “Complemented by stronger-than-expected operating cash flow, we view these results positively.”

In a research update to clients today, Stanley maintained his “Buy” rating and one-year target price of $1.25 on Patient Home Monitoring, implying a return of 178 per cent at the time of publication.

More Cantech Life Sciences

Tagged with: phm
Nick Waddell

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

Recent Posts

Ambarella wins price target raise at Roth

Roth Capital Markets analyst Suji Desilva raised his price target for Ambarella (Ambarella Stock Quote, Chart, News, Analysts, Financials NASDAQ:AMBA)… [Read More]

7 hours ago

Novo Nordisk is undervalued, this fund manager says

Darren Sissons, partner and portfolio manager at Campbell, Lee & Ross Investment Management, told BNN Bloomberg’s Market Call on Aug.… [Read More]

8 hours ago

The risk-to-return on NTG Clarity Networks is incredible, Beacon Securities says

Beacon Securities analyst Doug Cooper maintained a “Buy” rating and $5.00 target for NTG Clarity Networks (NTG Clarity Networks Stock… [Read More]

8 hours ago

NervGen Pharma price target chopped at Research Capital

Research Capital analyst Andre Uddin lowered his target price for NervGen Pharma (NervGen Pharma Stock Quote, Chart, News, Analysts, Financials… [Read More]

8 hours ago

Theralase Technologies is very undervalued, this analyst says

Research Capital analyst Andre Uddin maintained a “Speculative buy” rating and C$0.70 target price on Theralase Technologies (Theralase Technologies Stock… [Read More]

8 hours ago

Sabio Q2 gets thumbs up at Paradigm Capital

Paradigm Capital analyst Daniel Rosenberg reiterated a “Buy” rating and C$1.50 target price on Sabio Holdings (Sabio Holdings Stock Quote,… [Read More]

4 days ago