Haemonetics (HAE): Assessing Valuation After Profit Beat and Completion of Major Buyback

Haemonetics (HAE) just reported its latest quarterly earnings, showing a jump in profitability even though sales dipped compared to the same period last year. The company also wrapped up a substantial share buyback program, returning capital to shareholders and highlighting its financial flexibility.

See our latest analysis for Haemonetics.

Haemonetics has seen momentum build rapidly after its earnings beat and the wrap-up of a substantial buyback program. The company’s 30-day share price return soared 48.5%. That is a sharp reversal from earlier underperformance, though the total shareholder return over the past year is still down 18.6%, reminding investors that the long-term trend has some ground to make up.

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With shares making such a dramatic rebound, but the company still trading below analyst price targets, investors are left wondering if Haemonetics is undervalued right now or if the market has already accounted for its recovery prospects.

Most Popular Narrative: 11% Undervalued

Haemonetics is currently trading below what the most popular narrative considers its fair value, with the story driven by optimism about execution and a forecast of stronger margins and growth. This fair value sits notably above the latest closing price, setting the backdrop for the following perspective.

Enterprise-wide portfolio transformation, highlighted by the divestiture of low-margin businesses, disciplined capital deployment, and ongoing investment in automation and digital solutions, is driving substantial gross and operating margin expansion (guidance of 26 to 27% for FY26) and is likely to support further improvements in net margins and free cash flow conversion.

Read the complete narrative.

Curious what bold assumptions power this margin and cash flow breakthrough? The narrative's math leans on more than just steady growth; there is a pivotal shift in profitability that gives its fair value calculation extra bite. Want to see which levers analysts believe will supercharge future results? Only the full narrative reveals the numbers and rationale behind this valuation jump.

Result: Fair Value of $83 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, if execution in core products falters or competition intensifies, Haemonetics' recovery could stall. This could challenge both growth expectations and current optimism.

Find out about the key risks to this Haemonetics narrative.

Build Your Own Haemonetics Narrative

If you think the story could play out differently or want to shape your own view, take a few minutes to dig into the data yourself and build your own perspective. Do it your way.

A great starting point for your Haemonetics research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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