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HAE

Haemonetics NYSE:HAE Stock Report

Last Price

US$72.05

Market Cap

US$3.7b

7D

-7.1%

1Y

3.3%

Updated

27 Sep, 2022

Data

Company Financials +
HAE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health3/6
Dividends0/6

HAE Stock Overview

Haemonetics Corporation, a healthcare company, provides medical products and solutions.

Haemonetics Corporation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Haemonetics
Historical stock prices
Current Share PriceUS$72.05
52 Week HighUS$79.45
52 Week LowUS$43.50
Beta0.36
1 Month Change-4.10%
3 Month Change9.22%
1 Year Change3.27%
3 Year Change-42.03%
5 Year Change57.01%
Change since IPO1,113.47%

Recent News & Updates

Sep 06

Haemonetics: Plasma Thesis Continues To Play Out, Reiterate Buy

Summary We reiterate the buy thesis on Haemonetics Corp. Strong Q2 earnings alongside healthy plasma collection market fundamentals are appealing factors. HAE offers equity portfolios an uncorrelated source of investment return via the niche offering in plasma. Valuations are supportive at a reiterated $98. We rate HAE a buy on the factors discussed below. Investment Summary We reiterate the buy thesis on Haemonetics Corporation (HAE) following second quarter earnings and an extended outlook for plasma collections in FY23. We advocated the investment debate hinges on this point for HAE in previous analysis here, noting this idiosyncratic risk factor has potential to drive uncorrelated equity returns. HAE has since delivered, and probable outcomes for the stock are compelling. Rate buy $98 valuation in line with previous analysis. Exhibit 1. HAE 1-year price action, with net volume and money flow Data: Refinitiv Q1 FY23 earnings exhibit strengths to plasma In our last analysis we made the supposition that "HAE is set for a period of accelerated earnings growth into the coming years by our estimation." This was carried through in Q1 FY23 and were exemplary of the recovery in plasma volumes our investment thesis hinges on. As seen in Exhibit 2, plasma revenues of $103 million ("mm") were up 44% YoY, with the bolus of turnover still derived from North America. This was backed by a 15% YoY gain to Hospital revenues and an over 17% gain for the both on aggregate terms. Exhibit 2. Growth in turnover heavily skewed towards plasma with above-consensus results at the top and bottom line from the segment We called for this kind of growth in plasma collections earlier in the year and this demonstrates the normalization of the market to reflect more recognizable growth trends looking ahead. Data: HB Insights, HAE 10-Q Q1 FY23 As seen in Exhibit 3, quarterly turnover from plasma has made a sequential recovery after showing signs of imminent collapse in late FY21. These are still well behind FY19 levels but growth trends indicate that volumes have normalized somewhat. We need volumes to tick higher in order to driver additional uncorrelated earnings to the rest of the equity risk budget to med-tech across our portfolios. Exhibit 3. Growth trends in plasma collections normalizing to the upside however still have a while to reach FY19 range This is incredibly important to see with contracted revenues [from the CSL contract] diminishing, plasma sales are still expanding organically as well Data: HB Insights, HAE 10-Q: Q1 FY23 Touching on the CSL agreement – recall, it also allows CSL to use its PSC2 device and continue purchasing disposables until expiry. Management forecasted a $88mm [~$1.70/share] accretion to the top-line in FY23 revenues. Management reaffirmed this on the Q1 earnings call – per CEO Chis Simon, in response to analyst questioning: "In our revenue guidance for the year, we've made no change to the previously communicated $88 million in revenue. That's the minimum commitment from CSL. So that's where we stand as of now." Ex-CSL collection volumes were also up 40% YoY and 12% QoQ, ahead of seasonal trends. This is the 3rd quarter of sequential growth in non-CSL revenue. This continues to provide a bullish underweight to the investment debate, as we firmly believe the market is under-reflecting these growth probabilities. In other words, in the distribution of probable outcomes for HAE, for the next 12 months, the data increasingly corroborates an outsized performance in plasma volume even walking into a weaker economic outlook. Management guide FCF conversion [gross of restructuring expenditures] of $100–$130mm for FY23. We are aligned with that view. In fact, we project plasma revenues of $415mm by FY25, with ~$90mm in sequential revenues for the company up until this point. We believe HAE will generate ~$3.70 in earnings per share by this mark, up from a projected $2 per share in FY23 in our modelling, as seen below. Exhibit 4. HAE forward estimates FY23–25' Data: HB Insights Estimates Meanwhile, we are satisfied with HAE's intangible and tangible equity value that serves as a good indicator to what we're buying in the company. After removing $466mm in goodwill from the balance sheet, shareholder equity adjusts down to $421mm from $770mm, however, within this net amount is $288mm in tangible assets, $313mm in adjusted intangible asset value, and niche exposure to plasma collection. This is important to recognize in the investment debate, as return on assets has remained steady and printed 3.8% on a T12M basis last quarter. So the 77% increase resulted in a 48% leverage to ROA, and this will be integral to HAE's growth story looking ahead as it continues to invest in R&D and therefore will grow its intangible asset base. Technical factors On the chart, shares have bounced from support 3x before looking topping and rolling over to the downside. We are now testing the support level again with the mouth of the ascending triangle being squeezed to the upside with long-term buying support, as seen in on balance volume ("OBV") in the Exhibit below. We do note a mismatch in the rate of change between the HAE share price and long-term trend indicators shown below. We believe there is good reason to believe the current upside move has additional legs.

Aug 24

Haemonetics reaches new 52-week high; shares up 41% YTD

Haemonetics (NYSE:HAE) reached a new 52-week high on Wednesday of $77.55. Year to date, the medical technology products company is up 41%. In its recent fiscal 2023 Q1 earnings, Haemonetics beat on the top and bottom line and raised its FY 2023 guidance. Seeking Alpha's Quant Rating views Haemonetics (HAE) as a hold with strong marks for profitability and momentum.

Shareholder Returns

HAEUS Medical EquipmentUS Market
7D-7.1%-6.4%-5.8%
1Y3.3%-31.4%-22.1%

Return vs Industry: HAE exceeded the US Medical Equipment industry which returned -32.3% over the past year.

Return vs Market: HAE exceeded the US Market which returned -23.7% over the past year.

Price Volatility

Is HAE's price volatile compared to industry and market?
HAE volatility
HAE Average Weekly Movement4.2%
Medical Equipment Industry Average Movement8.5%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: HAE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HAE's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19712,821Chris Simonhttps://www.haemonetics.com

Haemonetics Corporation, a healthcare company, provides medical products and solutions. It operates through three segments: Plasma, Blood Center, and Hospital. The company offers automated plasma collection devices, related disposables, and software, including NexSys PCS and PCS2 plasmapheresis equipment and related disposables and intravenous solutions, as well as integrated information technology platforms for plasma customers to manage their donors, operations, and supply chain; and NexLynk DMS donor management system.

Haemonetics Corporation Fundamentals Summary

How do Haemonetics's earnings and revenue compare to its market cap?
HAE fundamental statistics
Market CapUS$3.70b
Earnings (TTM)US$67.71m
Revenue (TTM)US$1.03b

54.6x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HAE income statement (TTM)
RevenueUS$1.03b
Cost of RevenueUS$463.64m
Gross ProfitUS$562.49m
Other ExpensesUS$494.78m
EarningsUS$67.71m

Last Reported Earnings

Jul 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.32
Gross Margin54.82%
Net Profit Margin6.60%
Debt/Equity Ratio99.9%

How did HAE perform over the long term?

See historical performance and comparison