Haemonetics Holds Key Level. Gains to Follow?
The stock tested and held a key demand zone b/w $70-$82.
Since hitting $140 in August 2019, Haemonetics' stock is down 37% from its high print. It's trailed the S&P 500 over one year but outperformed over three and five-year periods.
What's its chart telling us?
- The stock held the $70.00-$82.30 demand (support zone).
- It last tested this zone in February & April, 2019 (purple arrow). And rallied ~70% over the next six months.
| POTENTIAL CAGR | |
|---|---|
| Beginning Value | $82 |
| Ending Value | $140 |
| 1-year CAGR | 70.5% |
| 3-year CAGR | 19.4% |
| 5-year CAGR | 11.2% |
| 7-year CAGR | 7.9% |
- Beginning Value = Support level at $82.
- Ending Value = Previous all-time at $140.
*These are potential returns based on the price making it back to its all-time high. There's no guarantee it will happen.
What they do:
Haemonetics ($HAE) makes hematology products that help improve patient care and reduce the cost of healthcare.
Note: Hematology is the study of blood and blood disorders. Learn more about hematology and why it’s essential.
They have three business units: Plasma, Blood Center, and Hospital.
- Plasma-This unit provides plasma collection devices, disposables, and software for biopharmaceutical companies.
- Blood Center-This unit makes blood collection and software products.
- Hospital-This unit makes devices for measuring the coagulation of blood. And disposables and software that facilitate blood transfusions and cell processing.
| REVENUE BREAKDOWN | |
|---|---|
| Plasma | 46% |
| Blood Center | 32% |
| Hospital | 20% |
| Other | 2% |
For more details on their business, start reading on page 2 of its annual report.
Their customers:
- Biopharmaceutical companies
- Blood collection groups and independent blood centers
- Hospitals and national health organizations
Distribution:
They have a direct sales force and independent distributors. They target the decision-makers within each organization.
Note: In fiscal 2020, 2019, and 2018, their ten largest customers accounted for 54%, 52%, and 45% of their net revenues.
| KEY FACTS | |
|---|---|
| Ticker | $HAE |
| Headquarters | Braintree, MA |
| # of Employees | 3,300 |
| Market Cap. | $4.53 billion |
| TTM Revenue | $945.6 million |
| Date Founded | 1971 |
| IPO Year | 1991 |
| Short Interest | 2.5% |
| 52-Week Range | $74-$131 |
| KEY FINANCIALS | TTM, $ in millions |
|---|---|
| Revenue | $945.6 |
| Gross Margin | 48.9% |
| EBITDA | $240.7 |
| EBITDA Margin | 25.5% |
| Net Income | $95.5 |
| Net Income Margin | 10.1% |
| Free Cash Flow | $101.3 |
| Free Cash Flow Margin | 10.7% |
| RETURNS | TTM |
|---|---|
| Return on Assets | 7.0% |
| Return on Invested Capital (ROIC) | 8.6% |
| Return on Equity | 15.9% |
| VALUATION MULTIPLES | |
|---|---|
| Forward Price/Revenues | 4.9x |
| Trailing Price/Revenues | 4.8x |
| Forward Price/Earnings | 31.4x |
| Trailing Price/Earnings | 47.9x |