Kestra Medical Technologies, Ltd. (NASDAQ: KMTS)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0001877184
Market Cap 892.66 Mn
P/B 5.44
P/E -6.43
P/S 12.02
ROIC (Qtr) -59.22
Div Yield % 0.00
Rev 1y % (Qtr) 53.40
Total Debt (Qtr) 44.80 Mn
Debt/Equity (Qtr) 0.27

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 177.62M provide 3351.25x coverage of short-term debt 53000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 246.70M provides 5.51x coverage of total debt 44.80M, indicating robust asset backing and low credit risk.
  • Cash position of 177.62M provides exceptional 256.67x coverage of minority interest expenses 692000, indicating strong liquidity.
  • Tangible assets of 246.70M provide robust 15.92x coverage of other current liabilities 15.49M, indicating strong asset backing.
  • Strong cash position of 177.62M provides 11.46x coverage of other current liabilities 15.49M, indicating excellent liquidity.

Bear case

  • Investment activities of (27.48M) provide weak support for R&D spending of 17.62M, which is -1.56x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of (114.18M) provides weak coverage of capital expenditures of 27.48M, with a -4.16 ratio suggesting additional external financing needs for growth initiatives.
  • The company's operating cash flow of (86.70M) shows concerning coverage of stock compensation expenses of 36M, with a -2.41 ratio indicating potential earnings quality issues.
  • Operating cash flow of (86.70M) provides minimal -463.64x coverage of tax expenses of 187000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (123.94M) show weak coverage of depreciation charges of 8.45M, with a -14.67 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 174.27 Bn 61.02 17.31 0.00 Bn
2 BDX Becton Dickinson & Co 59.72 Bn 37.77 3.14 19.18 Bn
3 RMD Resmed Inc 39.76 Bn 26.76 7.37 0.85 Bn
4 ALC Alcon Inc 38.93 Bn 37.18 3.82 5.24 Bn
5 WST West Pharmaceutical Services Inc 17.69 Bn 133.13 12.54 0.30 Bn
6 HOLX Hologic Inc 16.81 Bn 30.91 4.07 2.52 Bn
7 COO Cooper Companies, Inc. 16.37 Bn 43.67 4.00 2.51 Bn
8 ALGN Align Technology Inc 13.73 Bn 36.29 3.45 0.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.97 2.75
EV to Cash from Ops. EV/CFO -8.46 39.87
EV to Debt EV to Debt 16.38 27.09
EV to EBIT EV/EBIT -5.92 32.86
EV to EBITDA EV/EBITDA -6.07 19.31
EV to Free Cash Flow [EV/FCF] EV/FCF -6.43 0.88
EV to Market Cap EV to Market Cap 0.82 -4.26
EV to Revenue EV/Rev 9.88 252.61
Price to Book Value [P/B] P/B 5.44 6.13
Price to Earnings [P/E] P/E -6.43 184.03
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -20.98 -1.09
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.36
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.74
Interest Coverage Int. cover (Qtr) -16.85 -117.83
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -33.52 -53.47
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1,625.60 414.02
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.48
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -61.04 -57.42
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -82.43 -106.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -60.82 -37.00
EBT Growth (1y) % EBT 1y % (Qtr) -54.75 -42.63
EPS Growth (1y) % EPS 1y % (Qtr) 15.92 -15.05
FCF Growth (1y) % FCF 1y % (Qtr) -31.42 56.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 179.96 67.95
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.30 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 4.97 2.51
Current Ratio Curr Ratio (Qtr) 5.47 7.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.27 0.55
Interest Cover Ratio Int Coverage (Qtr) -16.85 -117.83
Times Interest Earned Times Interest Earned (Qtr) -16.85 -117.83
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -155.50 -2,368.59
EBIT Margin % EBIT Margin % (Qtr) -166.90 -2,472.59
EBT Margin % EBT Margin % (Qtr) -176.81 -2,442.52
Gross Margin % Gross Margin % (Qtr) 46.40 30.06
Net Profit Margin % Net Margin % (Qtr) -186.90 -2,438.49