I really like this company for a lot of reasons:
- They are growing revenues year on year (30% p.a. is extremely impressive) and unlike Mach 7 it is majority recurring
- They are undervalued by the market (7x less than Mach 7, 200x less than Promedicus).
- The acquisition of RIMAB started to pay off with new customer wins. The acquisition is utilised to build an end-end platform. They also did not overpay during the acquisition.
I need to do more research but there is a real business being built. At this market valuation, even with economic risks on the taper and market downturn, the business is only going to keep growing. Hospitals//radiology clinics will not reduce IT investment.
Promedicus currently generate $60M revenue at a 60% operating margin given a $6B valuation. Back of napkin math state, the market is giving Promedicus a 100x multiple on revenues if they keep growing profitably. For IMExHS, they are currently given a 3x multiple on revenues. They would get rewarded by the market if they keep growing revenues profitably.
Although the one valid concern of the business is cash outflow. If they can't lower the cash burn, then more dilution to shareholders via capital raises.
