A guy commented my latest post, giving me the advice to take a look at Semler Scientific (SMLR).
Semler Scientific, Inc. is a company that provides technology solutions to improve the clinical effectiveness and efficiency of healthcare providers. Semler Scientific's mission is to develop, manufacture and market innovative products that assist its customers in evaluating and treating chronic diseases (that's from their website).
I took a quick look at the business and numbers were amazing!
2022 PE: 34 (it's expensive, but plenty of stocks are more expensive than that without the following numbers)
Profit margin: 39% (very rare to see such profit margin)
ROE: 64 (very high ROE)
Debt level: Very low
Revenues: Almost multiplied by 6 between 2016 and 2020 (exceptional)
Free cash flows: growing every year over the last 5 years (very rare)
EPS were negative until 2018, but since then, the company has been very profitable.
Now, let's do a collective work: Help me to find negative points about that stock. First, the track record of profitability is short. But apart from that, what can you see?