vendredi 10 décembre 2021

Semler Scientific (SMLR)

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?

5 commentaires:

  1. I had a quick look at a presentation on their website.

    My understanding of this business is that it revolves almost solely on a test procedure to detect in advance heart disease. A negative point I would see is a potential vulnerability to completion. Their margins could be eroded if a competitor found a better way of doing these tests.

    I have very little knowledge of the health service industry. I have made this post just to contribute to the debate.

    1. That's a good point.

      However, so far, their margins are very high which indicates that they're in a pretty good position.

  2. I'd say their costumers diversification might be something to worry about. Roughly 65-70% of their revenue from 2 clients as I understand it.

    1. (I feel like trying to answer a question from my esteemed economics teacher)

  3. Take a look at this video, maybe this can help:

    Seems to be a small company with a great patented product