Consensus community valuation
$1.140
Average Intrinsic Value
39.1%
Undervalued by
Active Member Straws
#Potential Acquisition Target
Last edited 4 weeks ago

Interesting turn of events, with Mach7 buying Client outlook for $40M. Client Outlook has eUnity that competes with Promedicus' Visage. Both products are front-end and Visage had acquired market share faster. The combined Mach7 technology (front-end and back-end) aims to take market share from Promedicus. Competing for tenders with the combined (front and back end) is a very serious threat to Promedicus. 

Hence, my thinking is that if Mach7 starts winning tenders that Promedicus would have got, then Promedicus would have to acquire Mach7. Either Promedicus build back-end themselves or acquire future market leaders. In the acquisition route, they should do it early such that they pay a lower price. 

Just my thoughts on what could be a really interesting battle for market share :) 

Read More
#Nice Presentation from M7T
Added 2 months ago
Read More
#Broker/Analyst Views
Last edited 5 months ago

31 January 2020:  Taylor Collison:  Mach7 Technologies (M7T):  Expecting a strong 1H result. Fair value estimate raised.

That link will take you directly to a .PDF file, so you'll need Adobe Acrobat Reader installed to read the file.

TC's Recommendation: Buy

Summary (AUD):

  • Market Capitalisation: $141M
  • Share price: $0.76 (31-Jan-20)  ($0.88 close on Fri 07-Feb-20)
  • Price Target: $1.17
  • 52 week low: $0.17
  • 52 week high: $0.92

"We reiterate our buy recommendation with a higher level of conviction in the investment thesis:  Validation of Mach7’s software in large hospital networks should spur increasing demand.  With $9.4m in new business for 1H FY20, the thesis appears to be playing out well.  After upgrading our FY20 numbers to reflect stronger than expected cash flow and extending the forecast to FY23, our base case fair value estimate rises to $1.07 (30-Aug: $0.77) which implies a 12-month price target of $1.17.  Our forecasts assume additional contract wins at large institutions (similar in deal size to Advocate Aurora) over the next 12 months.  The major downside risk is in delays to contract wins.  Management report the pipeline is strong with opportunities at various stages of advancement."

Read More
#Satisfaction!
Added a month ago

This is one of the first stocks i ever bought - back in mid 2018 @ $0.31. I heard about it on a podcast, read some company reports and liked what i saw. 6 months later I had lost 50% of my investment in it. I wish i could say i bought some more but i didn't but i didn't sell either. Fast forward to 2020 and my return is currently over 100% AND the fundermentals of this company are very sound. Ok i have other shares that are still below their March 2020 lows but there is something very satisfy about backing yourself onto a winner.

Here's hope of more upside!

Read More
#Financials
Added 2 months ago

I recently contacted M7T's Investor relations to ask about when the full year results will be released (see below). An interesting comment though about the "growing interest  in the company"

 

My apologies for the delay in responding. Historically the full year results have been released during the final week of August.

I can’t provide a provisional date as yet with the timing of Board meetings and audit involvement not 100% finalised. Until a date is published assume the final week of August. We will be publishing the date in advance given the growing interest in the company and looking to host a results conference call.

Read More
#H1 2020 results
Last edited 5 months ago

Mach7 Tech produced an impressive 1H result yesterday with both metrics operating cashflow and NPAT being positive. The surprising part was that NPAT was positive which was a shock to me and the market. 

"Mach7 signed customer contracts valued at $9.4 million for the half year. Revenue growth of 158% to $9.1 million was reflective of these new customer contracts signed during the half year". what I found amazing was that it does not include any sizeable revenues from its contract with Hospital Authority of Hong Kong (one of their largest customers).. 

They have managed to add "46 new opportunities, valued at >$40 million, added to the pipeline in H1 2020" The more impressive feat is that 9 RFPs valued at $32.5M is expected to be awarded this year.. They have hit the cashflow milestone with $2.4M FCFFand have $23M cash reserved in the bank. Most of it came from the $20M institutional placement during the quarter. They now have funds for acquisition but they have to be smart of what business to acquire. It would probably have to be a comapny specialising in EMHR that have mission critical systems integrated to multiple hospitals.   

Excellent result by management and they have delivered on their targets from March 2019. Let's hope more of the same for the end of the year :) 

Read More
#Financials
Added 5 months ago

12-month Free Cashflow Positive Target Update

In March 2019, the Company announced it expects to be free cashflow breakeven for the next 12-months, i.e. to the end of February 2020. For the 10-months ending 31 December, the Company reported $2.4 million of positive free cash flows, and today is still free cash flow positive and is therefore highly likely to be free cash flow positive for the 12 months ending 29 February 2020.

Cash Reserves

The financial position of the Company is strong with $23.3 million in cash, debt free and therefore well positioned to take advantage of organic and acquisitive growth opportunities. During the half year Mach7 successfully completed a private placement to institutional and other sophisticated investors, raising $20 million (before brokerage costs).

Read More
#ASX Announcements
Added 6 months ago

M7T released their 2nd quarter 2020 update

Key highlights were;

The second quarter of positive free cash flow putting them on target to be cash flow positive over the 12 months ending 28 February 2020.

2 customer signings and 7 contract expansion.

 

The company after $23.3 million in cash reserves and no debt.

Annual recurring revenue October 2019 was $8.5 million with further upside as a result of 38% of current contracts being in installation stage rather than live contract.

Consensus data has the company forecast to increase revenues in 2020 from $9.3 million to $14 million and a further increased to $18.1 million in 2021.

Conclusion

Company has a large addressable global market that is growing strongly. It has significant competitive advantages and its customers represent large respected health organisations.

M7 provides access to the Med Tech Thematic.

With cash at bank and no debt and being cash flow positive with a large addressable global market appears an attractive proposition.

Continuing contract wins appear the main ongoing catalyst.

Institutions hold approximately 28% of the company

Read More
#ASX Announcements
Added 3 months ago

THIRD QUARTER FY20 BUSINESS UPDATE

Highlights:

  • New sales orders of $0.8 million
  • Two new teleradiology customers go live on Mach7’s Platform•COVID-19 sees sales cycle lengthened but creates new remote reading opportunity
  • Q3 closes with $22.6 million cash, no debt
  • Strong revenue growth (45%) expected for FY20
  • EBITDA profitable and positive free cash flow results expected for FY20

Sales Orders & Successful Deployments

The Company completed $0.8 million of new sales orders for the quarter, largely from its existing customer install base. The sales were predominantly for technology licenses and professional services and as such, are expected to convert to revenue well within one year.

During the quarter, Mach7 had two of its newest customers go live on the Mach7 Platform:

Colorado Imaging Associates, P.C. (“CIA”)

CIA very recently went live on Mach7’s Enterprise Imaging Platform. CIA provides professional radiology services to hospitals, medical centers, outpatient imaging centers and specialty practices throughout Colorado (and Wyoming). CIA is archiving studies and results for 11 sites using the Mach7 Platform, with plans to bring additional sites on board including one with new 3D breast tomosynthesis in May 2020. Additional clinical workflows have been configured using the Mach7 software and will be brought live once the PACS side is ready. CIA’s Director of IT has stated he isimpressed with the ease in which Mach7 can configure workflows in the Platform.

Adventist Health Tulare (“Tulare”)

Tulare Hospital went live on Mach7’s Diagnostic Studio along with Client Outlook’s zero footprint diagnostic viewing platform during March. Tulare is a 101-bed hospital located in Tulare, CA and is part of Adventist Health Central Valley Network. The Mach7 solution provided Tulare with a modern and integrated teleradiology PACS workflow. The group of 8 Radiologists are using the Mach7Platform for daytime teleradiology and will utilise the Platform (together with Client Outlook’s eUnity ASX Announcementviewer) to read onsite, at a neighbouring hospital or from home. Tulare’s Chief Radiologist is ecstatic with the flexibility the system has provided for exam access. As a result, the customer has quickly expanded the go live beyond CT’s, to read all modalities. The Chief Radiologist was extremely excited to extract himself from Tulare’s aging PACS and is looking to expand the Mach7 solution to other sites within the Adventist Health network.

COVID-19 Business Update

Further to the Company’s shareholder update on 19 March 2020, Mach7 today provides more information on the impact the global COVID-19 pandemic is having on the business and the healthcare industry more broadly:

Demand for Mach7 software continues

There will be a pent-up demand for elective procedures once the pandemic subsides and hospital revenue should rebound. Whilst the timing of this expected rebound is still uncertain, the demand for Mach7’s software continues. The sales pipeline is stable and being monitored closely.

Sales cycle has lengthened

COVID-19 has created tremendous short-term impacts on the healthcare industry. Revenue for hospitals, Independent Delivery Networks (IDNs) and private practices is down, although the actual percentage of revenue loss varies greatly across healthcare providers. This temporary loss of revenue is driving a pause in the buying market for new projects. This is lengthening the sales cycle for Mach7’s enterprise imaging platform and Mach7 expects the sales cycle to be longer than usual for at least through the rest of this fiscal year, and likely into Q1 of FY21.

New market opportunity for Mach7 software

The need for hospitals to invest in Business Continuity services and the ability for clinicians to perform work from home has become more acute than ever. There is a distinctly different requirement in software capability between remote reviewing/preliminary reading and diagnostic reading remotely. Preliminary reading is commonplace and a market that has already been saturated. However remote diagnostic reading capability is largely being served by outdated technology today and provides Mach7 with a unique market opportunity. The Mach7 softwaresolution is uniquely positioned, both in functionality and in interoperability capabilities, to provideclinicians with cutting edge technology for remote diagnostic reading, allowing both the clinical and technical components of the organizations to be successful. ...

Q3 Closes with Strong Financial Position

The Company reported $1.3 million free cash outflows for the quarter, and $0.9 million of positive free cash flows for the nine months year to date. Notably, this quarter includes a one-off payment of $0.6 million to a reseller which related to sales made in a previous quarter. This Q3 result was in-line with internal expectations, with Q3 being seasonally the weakest cash flow quarter of the year. The Company closed the quarter with $22.6 million (Q2: $23.3 million) cash reserves and no debt.

Read More
#ASX Announcements
Added 4 months ago

Melbourne, Australia; 11 March 2020: Mach7 Technologies Limited (“Mach7” or the “Company”) (ASX:M7T), a company specialising in innovative medical imaging data management solutions for healthcare providers, today announced the completion or ‘go-live’ of a Picture Archiving and Communication System (PACS) modernisation project for Sentara Healthcare. The PACS is powered by Mach7’s Enterprise Imaging Platform (VNA) and Diagnostic Studio in conjunction with Client Outlook’s eUnity diagnostic viewer. The project marks the first cloud-based deployment of the complete Mach7 solution at a customer site. The solution is a public cloud deployment utilizing the Microsoft Azure framework, covering more than two million images per year across the Sentara Healthcare network. In addition to storing data for Sentara’s radiology departments, the Mach7 VNA also stores images and image data for their cardiology departments, which provides a greater degree of infrastructure consolidation and integration. This go-live milestone triggers a new Mach7 software subscription license that will generate $850k of recurring subscription revenue per annum for Mach7, of which approximately 50% is additional revenue and 50% is conversion of a previous annual support and maintenance agreement. Trent Conwell, Sentara Healthcare’s IT Director, said, “As organizations are making decisions on how best to deliver IT infrastructure in a clinically and fiscally responsible way it is imperative to evaluate each software vendor’s infrastructure capabilities. Sentara partnered with Mach7 to provide a standardized diagnostic imaging solution that provides the infrastructure flexibility that we needed. Moving to a centralized cloud infrastructure means the days of keeping up to seven copies of diagnostic studies are gone. All studies are centralized and available diagnostically to interpreting physicians across the Sentara enterprise.” Mike Lampron, CEO of Mach7 Technologies, said, “Mach7 is excited to announce the successful go-live of Sentara’s PACS Modernization project. Our vendor-neutral solution will give Sentara unparalleled flexibility and cost savings, with a foundation they will be able to build on for years to ASX Announcement come. We are confident the joint Mach7-Client Outlook solution will meet the needs of their organization and we look forward to our continued partnership.”

Read More
#ASX Announcements
Added 5 months ago

Mach7 Delivers Positive EBITDA and NPAT, Revenue growth +158%

H1 FY20 Highlights:

  • EBITDA $2.3 million, growth of $5.2 million or 176%;
  • NPAT $0.7 million, growth of $5.1 million or 115%;
  • Revenue $9.1 million, growth of $5.6 million or 158%;
  • Business well capitalised with $23.3 million cash, debt free and positioned for future growth;
  • Strong growth driven by new customer contracts and continued growth in CARR
  • Growing sales pipeline including higher value RFP opportunities
Read More
#Broker/Analyst Views
Added 5 months ago

Taylor Collison broker report as attached

View Attachment

Read More
#Retail Share Placement
Added a month ago

Up 17% today  on completion of instituional placement and opening of retail placement. 

MACH7 COMPLETES INSTITUTIONAL ENTITLEMENT OFFER AND PLACEMENT WITH STRONG INVESTOR SUPPORT Highlights • Mach7 raises $23.4M (34.4M shares) under Placement and Institutional Entitlement Offer • Mach7 will seek to raise $11.4M (16.8M shares) pursuant to the fully underwritten Retail Entitlement Offer • All 51.2M shares will be issued at A$0.68 per share • Total funds of $34.8M will be used towards the acquisition of Client Outlook Inc. Melbourne, Australia; 12 June 2020: Mach7 Technologies Limited (“Mach7” or the “Company”) (ASX:M7T), a company specialising in innovative medical imaging data management solutions for healthcare providers, today announced it has successfully completed the institutional placement (Placement) and the institutional component of its entitlement offer (Institutional Entitlement Offer) announced to the ASX on Wednesday, 10 June 2020. Funds raised from the capital raising together with the Company’s existing cash reserves will be used to fund the purchase of Client Outlook Inc. as announced to market on 10 June 2020. Mike Lampron, CEO, said: “I am delighted by the strong demand for the capital raise so far. This highlights shareholder commitment to Mach7, from our existing shareholders and from new shareholders which we welcome to our register. Mach7 is continuing a market disruptive, high growth journey, which has now been enhanced by our acquisition of Client Outlook. We are excited by our growth potential and the immediate opportunities to improve patient outcomes and service delivery for our healthcare customers.” Placement and Institutional Entitlement Offer The Placement and Institutional Entitlement Offer raised $3.7 million and $19.7 million respectively, a total of $23.4 million. The Company will progress the planned Retail Entitlement Offer to raise a further $11.4 million, taking the total capital raise to $34.8 million. The Company will issue 5.4 million and 29.0 million shares under the Placement and Institutional Entitlement Offer respectively (New Shares), with all New Shares being issued at a fixed price of A$0.68 per share (Offer Price). This Offer Price represents a 13.9% discount to the last traded price of $0.79 on 9 June 2020, a 9.6% discount to the 5-day VWAP of $0.7524 up to 9 June 2020, and an 11.2% discount to the TERP1 of $0.7659. The New Shares issued will rank equally with existing Mach7 ordinary shares on issue. ASX Announcement Placement Shares issued represent 3% of issued capital (prior to the Entitlement Offer) and will be issued using ASX Listing Rule 7.1 (58,500 shares) and 7.1A (5,371,202 shares) capacity available to the Company. Settlement of the Placement and Institutional Entitlement Offer is expected to occur on Wednesday, 17 June 2020 with allotment of the New Shares expected to occur on Thursday, 18 June 2020. Morgans Corporate Limited has solely managed, and fully underwritten, both the Placement and the Institutional Entitlement Offer. Retail Entitlement Offer The Company will seek to raise A$11.4 million pursuant to the retail component of the Entitlement Offer (Retail Entitlement Offer). Eligible retail shareholders, with a registered address in Australia or New Zealand, are invited to subscribe for 1 New Share for every 4 shares they hold as at 7.00pm (AEST) on Friday, 12 June 2020 (Record Date), at an offer price of A$0.68 per share. The Retail Entitlement Offer is fully underwritten by Morgans Corporate Limited. The Retail Entitlement Offer will open on Wednesday 17 June 2020 and close at 5.00pm (AEST) on Friday 26 June 2020. Eligible retail shareholders who take up their entitlement in full will also be offered the opportunity to subscribe for additional New Shares, up to a maximum of 50% of their entitlement under an oversubscription facility, but only to the extent that there is a shortfall under the Retail Entitlement Offer (Shortfall Facility) and at the Board’s absolute discretion. Entitlements cannot be traded on the ASX or transferred. Eligible shareholders who do not take up their entitlement under the Entitlement Offer in full or in part, will not receive any value in respect to those Entitlements not taken up. Further details about the Retail Entitlement Offer will be set out in the retail offer booklet, which the Company expects to lodge with the ASX and dispatch on Wednesday, 17 June 2020.

Read More
#HAHK deal
Added 2 months ago

M7T signs deal with HAHK

Revenue to exceed $18M for FY2020.

Maintaining SP target of 96c.

Read More
#H1 2020 results
Added 5 months ago

Annual rev growth 158% or 5% MRR compounding growth.

Assume H2 revenue increase 50% on H1

FY2020 revenue = 9.1M + (9.1x1.5) = $22.75M

High revenue growth trajectory warrants 8x revenue multiple = $182M market cap

Shares on issue ~ 190M

Share price target = 96c per share.

Read More