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Haemonetics Corp. (HAE)
NYSE:HAE
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Haemonetics
(NYSE:HAE)
70Outperform
Positive Factors
Management Strategy
Management is committed to achieving a premium MedTech profile, targeting high-single digit organic sales growth, ~60%+ gross margin and high-20%’s operating margin sustainably.
Market Share
The outlook looks bright as the company captures material share, benefits from continued pricing gains, and collections improve.
Partnerships
The announcement of new long-term contracts with two key Plasma customers helps dispel the long-standing fears of competition.
Negative Factors
Financial Performance
The sale of whole blood assets led to a decrease in projected revenue and earnings per share for upcoming years.
Product Roll-Out
The roll-out of VASCADE MVP XL was slower than expected and compounded by VASCADE slippage across coronary and peripheral procedures likely to persist near-term.
Stock Performance
The stock has seen a steady decline due to concerns like slowing base plasma collections and the rate of VASCADE XL uptake.
Haemonetics (HAE) vs. S&P 500 (SPY)
Market Cap
$3.17B
Dividend YieldN/A
Average Volume (3M)868.65K
Price to Earnings (P/E)24.9
Beta (1Y)0.98
Revenue Growth8.14%
EPS Growth2.55%
CountryUS
Employees3,657
SectorHealthcare
Sector Strength72
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)2.54
Shares Outstanding50,237,465
10 Day Avg. Volume669,075
30 Day Avg. Volume868,647
Financial Highlights & Ratios
PEG Ratio9.76
Price to Book (P/B)N/A
Price to Sales (P/S)2.34
Price to Cash Flow (P/CF)18.40
P/FCF Ratio22.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$96.71Price Target Upside53.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Haemonetics Business Overview & Revenue Model
Company DescriptionHaemonetics Corporation is a global healthcare company that specializes in providing blood and plasma supplies and services. The company operates in the healthcare sector, focusing on blood management solutions that enhance patient care and improve operational efficiency in hospitals and blood centers. Haemonetics offers a range of products, including plasma collection systems, blood cell separators, and surgical blood salvage systems, catering to hospitals, blood banks, and plasma collection centers worldwide.
How the Company Makes MoneyHaemonetics makes money primarily through the sale of its blood management devices and related services. Its revenue streams are driven by the sale of plasma collection systems, which are used by plasma collection centers to efficiently and safely collect plasma from donors. Additionally, the company generates income from its hospital products division, which provides surgical blood salvage systems and blood cell separators used in various medical procedures. Haemonetics also engages in long-term supply agreements and partnerships with healthcare institutions and blood centers, ensuring a steady demand for its products and services. These partnerships and the recurring nature of its business model, through the continuous need for consumables and maintenance of its equipment, contribute significantly to its earnings.
Haemonetics Financial Statement Overview
Summary
Haemonetics has a strong revenue growth and improving profitability metrics, with robust gross and net profit margins. However, cash flow management needs attention due to declining free cash flow, which could affect future operational flexibility. The balance sheet shows moderate reliance on debt, which should be monitored carefully.Income Statement
Haemonetics has demonstrated strong revenue growth, with a notable Revenue Growth Rate of 17.49% from 2022 to 2023 and 12% from 2023 to TTM. The Gross Profit Margin for TTM is robust at 52.38%, and the Net Profit Margin has improved to 9.47% in TTM, indicating efficient cost management. EBIT and EBITDA margins are healthy at 15.02% and 19.15% respectively, showcasing operational efficiency.85
Very Positive
Balance Sheet
The balance sheet shows a moderate Debt-to-Equity Ratio of 1.35 in TTM, indicating a balanced leverage position. The Return on Equity has improved to 14.34% in TTM, reflecting effective utilization of shareholder funds. However, the Equity Ratio at 35.82% suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.75
Positive
Cash Flow
Haemonetics has shown a decrease in Free Cash Flow, with a decline of 17.06% in TTM compared to the previous year. The Operating Cash Flow to Net Income Ratio is 0.99, indicating close alignment between cash generation and profitability. The Free Cash Flow to Net Income Ratio stands at 0.74, suggesting adequate but slightly declining cash flow conversion from profits.70
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.37B | 1.31B | 1.17B | 993.20M | 870.46M | 988.48M |
| Gross Profit | |||||
| 719.40M | 691.55M | 615.10M | 505.50M | 397.84M | 484.51M |
| EBIT | |||||
| 206.27M | 164.88M | 156.03M | 80.75M | 57.96M | 153.95M |
| EBITDA | |||||
| 263.04M | 265.58M | 249.34M | 178.50M | 142.25M | 264.24M |
| Net Income Common Stockholders | |||||
| 130.06M | 117.56M | 115.40M | 43.38M | 79.47M | 76.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 320.85M | 178.80M | 284.47M | 259.50M | 192.31M | 137.31M |
| Total Assets | |||||
| 2.53B | 2.20B | 1.93B | 1.86B | 1.82B | 1.27B |
| Total Debt | |||||
| 1.22B | 807.79M | 765.89M | 773.59M | 707.61M | 382.49M |
| Net Debt | |||||
| 903.99M | 628.99M | 481.42M | 514.09M | 515.30M | 245.18M |
| Total Liabilities | |||||
| 1.62B | 1.24B | 1.12B | 1.11B | 1.09B | 680.00M |
| Stockholders Equity | |||||
| 906.86M | 959.96M | 818.00M | 749.42M | 731.67M | 587.11M |
| Cash Flow | Free Cash Flow | ||||
| 95.93M | 115.45M | 162.87M | 75.75M | 71.77M | 109.46M |
| Operating Cash Flow | |||||
| 129.25M | 181.75M | 273.06M | 172.26M | 108.81M | 158.22M |
| Investing Cash Flow | |||||
| -192.99M | -322.39M | -143.79M | -86.34M | -425.44M | -57.18M |
| Financing Cash Flow | |||||
| 196.77M | 38.16M | -100.36M | -15.75M | 367.45M | -131.21M |
Haemonetics Technical Analysis
Negative
63.19
Price Trends
66.26
Negative
74.20
Negative
77.14
Negative
Market Momentum
-0.83
Positive
40.30
Neutral
29.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HAE, the sentiment is Negative. The current price of 63.19 is below the 20-day moving average (MA) of 65.47, below the 50-day MA of 66.26, and below the 200-day MA of 77.14, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 29.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HAE.
Haemonetics Risk Analysis
Haemonetics disclosed 38 risk factors in its most recent earnings report. Haemonetics reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Haemonetics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $146.96B | 79.65 | 9.03% | ― | 17.60% | 16.84% | |
73 Outperform | $22.35B | 25.33 | 7.24% | 0.85% | 3.84% | -9.29% | |
70 Outperform | $3.17B | 24.87 | 14.06% | ― | 8.14% | 2.55% | |
68 Neutral | $41.54B | 28.95 | 17.17% | ― | -4.67% | 6.23% | |
67 Neutral | $13.76B | 19.40 | 15.78% | ― | 1.75% | 50.25% | |
54 Neutral | $17.31B | 136.07 | -9.24% | 2.73% | -14.00% | -184.82% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 17.48% | 1.17% |
* Healthcare Sector Average
Performance Comparison
HAE
Haemonetics
63.19
-21.60
-25.47%
BAX
Baxter International
33.75
-8.67
-20.44%
BSX
Boston Scientific
99.36
31.26
45.90%
EW
Edwards Lifesciences
70.91
-23.34
-24.76%
HOLX
Hologic
61.32
-14.80
-19.44%
ZBH
Zimmer Biomet Holdings
112.26
-16.62
-12.90%
Haemonetics Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -11.30% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong growth in the hospital and interventional technologies segments offset by declines in plasma revenue and challenges in China. The company's ability to secure new long-term agreements and record operating margins are positive signs, but the issues with cash flow and certain product lines indicate areas needing improvement.Highlights
Hospital Segment Growth
Hospital revenue grew 24% on a reported basis in the third quarter and 28% year-to-date, with organic growth of 12% and 14%, respectively. Blood Management Technologies revenue grew 10% in the quarter and 11% year-to-date.
Interventional Technologies Performance
Interventional Technologies grew 47% in the third quarter and 58% year-to-date on a reported basis with 16% organic growth in the third quarter and 18% growth year-to-date.
Vascular Closure Growth
Growth in Vascular Closure was driven by leadership in electrophysiology, where revenue from VASCADE MVP and VASCADE MVP XL grew in the mid-20s, both in the quarter and year-to-date.
Record Operating Margin
Adjusted operating income for the third quarter was $89.4 million, a $16.1 million increase or 25.7% of revenue, a new company record.
New Long-term Agreements
Signed new long-term agreements with BioLife and Grifols, centered around gaining market share through adoption of winning technology.
Lowlights
Plasma Revenue Decline
Plasma revenue declined 9% in the quarter and 5% year-to-date due to the planned CSL transition, with North America disposables revenue down 11% in the quarter.
Weakness in China
Difficult market conditions in China impacted performance, particularly in hemostasis management due to significant cutbacks in reimbursement.
Lower Free Cash Flow
Cash provided by operating activities was $65.2 million, down from $117.7 million in the same period last year, and free cash flow was $49.7 million compared with $62.3 million in the same period of fiscal '24.
Sensor Guided Technologies and Esophageal Cooling Shortfall
Acknowledged falling short of ambitious targets for Sensor Guided Technologies and Esophageal cooling due to external market disruptions.
Company Guidance
During Haemonetics' third quarter fiscal year 2025 call, the company provided updated guidance for the fiscal year. Revenue for the third quarter was reported at $349 million, indicating a 4% growth on a reported basis but flat growth organically. The company highlighted its adjusted earnings per share, which increased by 14% to $1.19. The hospital business unit, now the largest segment, showed impressive revenue growth of 24% on a reported basis and 12% organically for the quarter. In contrast, the Plasma business faced a revenue decline of 9% in the quarter due to the planned transition with CSL, although excluding CSL, U.S. disposables revenue saw growth. The company updated its guidance, projecting hospital revenue growth between 24% to 26% on a reported basis and a 5% to 7% decline in organic plasma revenue. Despite these adjustments, Haemonetics remains confident in its strategy, emphasizing sustainable long-term growth and margin expansion, with third-quarter adjusted operating income reaching a record 25.7% of revenue.Haemonetics Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Haemonetics Announces Key Executive Leadership Changes
Positive
Mar 3, 2025
Haemonetics Corporation announced executive leadership updates on March 3, 2025, appointing Frank W. Chan, Ph.D. as Executive Vice President, Chief Operating Officer, effective April 7, 2025, and promoting Roy Galvin to Executive Vice President, Chief Commercial Officer. Chan, with over 25 years of experience in medical device and healthcare technology, will oversee research, development, and global manufacturing, while Galvin will expand his role to include the Global Hospital business. These appointments aim to strengthen Haemonetics’ leadership and support its long-term growth strategy.
Executive/Board Changes
Haemonetics Announces EVP Josep Llorens’ Retirement
Neutral
Jan 3, 2025
Haemonetics has announced the upcoming retirement of Josep Llorens, their Executive Vice President of Global Manufacturing and Supply Chain, effective July 11, 2025. Mr. Llorens will remain in his role during the search for his successor and assist in the transition, highlighting the company’s commitment to ensuring a smooth operational continuity.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.