You've successfully subscribed to Pure Alpha
Great! Next, complete checkout for full access to Pure Alpha
Welcome back! You've successfully signed in.
Success! Your account is fully activated, you now have access to all content.
Success! Your billing info is updated.
Billing info update failed.

Haemonetics Holds Key Level. Gains to Follow?

The stock tested and held a key demand zone b/w $70-$82.

Insights team

Last updated: 9/02/2020.


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