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Haemonetics Holds Key Level. Gains to Follow?

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

Caleb Dismuke
Caleb Dismuke
2 min read

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

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Caleb Dismuke

Enjoy writing, cooking, and brainstorming business ideas.