Company Report
Last edited 2 years ago
PerformanceCommunity EngagementCommunity Endorsement
Performance (48m)
-4.3% pa
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#Buying Decision
stale
Added 2 years ago

One of the first businesses to buy during market correction would be this beast

Market getting out of steroids and now properly valuing companies.

My buy order is $40 as per valuation. I could get it cheaper but the margins are too damn juicy. While they expand revenues the bottom line expands, you can't beat that.


#Selling Decision
stale
Added 3 years ago

While I believe the company is exceptional at maintaining operating leverage, the valuation will decrease due to the tapering. The monetary forces are gearing towards a contraction in asset prices. If the downvote button existed, I would not be surprised to see it. 

The business is fantastic and will be one of the first businesses I buy back after the drop in value. The crunch is quite alarming when you consider the amount of printed paper that went into circulation last year. 

#Share Buy Back
stale
Added 3 years ago

Promedicus made an Announcement on April 1 which seem to go unnoticed by the Strawman community. It is a profound announcement that impacts the share price for rest of 2021 to April 2022. 

One of the reasons why the stock is going up is due to the company buying back shares. They were buying back shares from March 2020 to April 1st 2021.

Now, the new on-market share buy-back, permit Promedicus to acquire up to 10% of the ordinary shares on issue during the last 12 months. In simple terms, there are 104,211,574 shares on issue. Promedicus will by up to 10% of the issue or 10% * 104,211,574 = 10,421,157 shares.

If you do quick math, that would be $44 share price * 10,421,157 shares ~ $458M worth of shares will be bought back by the company in the next 12 months. So, there is a strong case for the share price to remain high as the company will buy back when it dips below what they feel is intrinsic value (which is subjective). 

Weirdly Promedicus has got your back as shareholder. Same cannot be said for some of the other companies I own :D   

#Market Leader
stale
Added 3 years ago

It is an incredible company. No doubts about it and there is more to come. Every big contract is getting higher ARR and longer duration.  

The deal with Intermountain will be "one the biggest Cloud-deployed PACS installations in North America, if not the world", as the deal involves replacing the current legacy PACS with Visage.  

"In terms of the pipeline, there have been a number of new opportunities, particularly over the past 6-8 months that supplement those already in the pipeline that are progressing through the cycle. So, whilst we have been very successful in converting end-stage opportunities such as Intermountain and the other deals we have announced over the past 6 months, our pipeline remains strong with a range of opportunities across various stages of the cycle and across multiple segments of the market."  

This enough for me to declare Promedicus the winner in the PACS battle. They are 5 from 5 after competing intensively with many players. The larger the contract, the stronger the competition. 

The revenues are also recurring. So it is a matter of building a spreadsheet with all contracts and adding the annual value of each contract on top like a Gantt Chart. Really hard to kill the business, as Promedicus is winning all the big contracts. The 2 latest contracts added ~ $10M more in ARR.

This implies $65M ARR valued at $4.2B. That is ~ 65x Price to sales, but that is a useless metric if Promedicus can maintain sales growth of 30% p.a. You are looking at $200M company by 2025. So sales are expected to triple, and top healthtech companies have maintained a premium in valuation. So you are looking at $12B valuation using spreadsheet maths, that's if you maintain a 60x price to sales. A better valuation method is required before the half-yearly, so watch this space :) Those are rough calculations to automatically rule out pricing metrics like EV/EBITDA and P/S as they do not make sense for companies that are growing rapidly.