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Viemed Healthcare Inc (VMD)
NASDAQ:VMD

Viemed Healthcare (VMD) AI Stock Analysis

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Viemed Healthcare

(NASDAQ:VMD)

Rating:80Outperform
Price Target:
$8.00
▲(12.99%Upside)
Viemed Healthcare's strong financial performance, strategic acquisitions, and positive earnings outlook contribute significantly to its stock appeal. While technical analysis shows mixed signals, the company's robust growth strategy and recent corporate actions reinforce its potential.

Viemed Healthcare (VMD) vs. SPDR S&P 500 ETF (SPY)

Viemed Healthcare Business Overview & Revenue Model

Company DescriptionViemed Healthcare (VMD) is a leading provider of in-home healthcare solutions, specializing in respiratory services and equipment. The company primarily focuses on patients with chronic respiratory diseases, such as Chronic Obstructive Pulmonary Disease (COPD). Viemed offers a comprehensive range of products and services, including non-invasive ventilation, continuous positive airway pressure (CPAP) devices, and other respiratory therapy solutions. With a commitment to improving patient outcomes and quality of life, Viemed delivers personalized care through a team of experienced healthcare professionals.
How the Company Makes MoneyViemed Healthcare makes money by providing home-based respiratory therapy services and equipment rental to patients with chronic respiratory conditions. The company's primary revenue streams include the rental of non-invasive ventilation devices, CPAP machines, and other related respiratory equipment. Viemed generates income through direct billing to patients as well as reimbursement from Medicare, Medicaid, and private insurance companies. Additionally, the company derives revenue from the provision of clinical services and support, which are billed separately. Key factors contributing to Viemed's earnings include its strong relationships with healthcare providers, favorable reimbursement policies, and a growing demand for in-home healthcare solutions.

Viemed Healthcare Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -2.61%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call indicates a positive outlook for Viemed Healthcare, with strong financial performance, effective sales restructuring, and strategic acquisitions driving future growth. However, there are some challenges related to regulatory changes, declining gross margins, and stalled VA opportunities.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
Organic revenue increased by 14.5%, and total revenue increased by 16.9%. Adjusted EBITDA grew 26% for the quarter to $12.8 million, with an adjusted EBITDA margin of 21.6%, up 160 basis points from a year ago.
Vent and Sleep Business Growth
Vent revenue was only down 3% sequentially but up 10% year-over-year. The sleep business saw a 7% sequential increase in sleep therapy patients and a 46% increase year-over-year.
Acquisition of Lehan's Medical Equipment
Viemed signed an agreement to acquire Lehan's Medical Equipment for $26 million, expanding their reach in respiratory and women's health markets.
Effective Sales Restructuring
The sales restructuring implemented last year resulted in a 9% sequential increase in new patient starts for vent patients and an overall positive impact on future business results.
Positive Regulatory Environment
Recent regulatory changes, such as the CMS proposed national policy coverage determination on noninvasive positive pressure ventilation, are viewed as moving in the right direction.
Negative Updates
Regulatory Challenges
The healthcare industry is still assessing potential cuts to Medicaid and Medicare, which could impact future operations, though Viemed believes these pressures play to their strengths.
Decline in Gross Margin
Gross margin was 56.3% for the quarter, compared to 58.9% for the first quarter of 2024 and 59.5% in the fourth quarter of 2024, due to the evolving composition of product and service mix.
Uncertain Impact of Tariffs
Potential impact from tariffs is uncertain, though current supplier contracts are largely locked in for 2025.
VA Opportunity Stalled
The VA opportunity, which was previously considered a significant potential area for growth, is currently considered dead due to administrative challenges.
Company Guidance
In the first quarter of 2025, Viemed Healthcare reported robust financial and operational performance, surpassing initial expectations. The company's vent business, representing 54% of revenues, showed a 10% year-over-year increase despite a 3% sequential decline, with total vent patients rising for the 16th consecutive quarter and new patient starts increasing by 9% sequentially. The sleep business also experienced growth, with a 7% sequential and 46% year-over-year increase in sleep therapy patients, complemented by a 40% rise in new patient setups year-over-year. The staffing business contributed 10% to net revenues, reflecting strong demand. Viemed projected full-year 2025 net revenues between $254 million and $265 million, with adjusted EBITDA expected to grow 11% over 2024, ranging from $54 million to $58 million. The company also announced the strategic acquisition of Lehan's Medical Equipment for $26 million, aiming to expand its respiratory and women's health offerings and establish a stronger presence in the Chicago market.

Viemed Healthcare Financial Statement Overview

Summary
Viemed Healthcare shows strong revenue growth and operational efficiency with healthy profit margins. The balance sheet is stable with low leverage and solid equity. Cash flow from operations is strong, though negative free cash flow signals caution in capital spending. Overall, the company is financially sound but could focus on improving net profitability and managing capital expenditures.
Income Statement
85
Very Positive
Viemed Healthcare has demonstrated solid revenue growth with a consistent upward trajectory from $117.06M in 2021 to $232.79M TTM. The gross profit margin is strong at 58.56% TTM, and the net profit margin has improved to 5.28% TTM. The EBIT and EBITDA margins are also healthy, indicating efficient operations. However, the net profit margin is relatively modest, suggesting room for profitability enhancement.
Balance Sheet
78
Positive
The company maintains a solid equity position with an equity ratio of 104.49% TTM, reflecting strong asset financing through equity. The debt-to-equity ratio is favorable at 0.05 TTM, indicating low leverage risk. Return on equity is moderate at 9.12% TTM. While the balance sheet shows stability, the moderate ROE suggests potential for better asset utilization to boost shareholder returns.
Cash Flow
70
Positive
Operating cash flow is robust at $40.77M TTM, but free cash flow has turned negative to -$6.48M TTM, largely due to increased capital expenditures. The operating cash flow to net income ratio is strong at 3.32 TTM, indicating effective cash conversion. The negative free cash flow suggests a need for careful capital management to ensure sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue232.79M224.26M183.01M138.83M117.06M131.31M
Gross Profit136.30M133.20M112.78M84.68M73.41M80.11M
EBITDA39.55M42.31M36.71M24.03M21.84M30.54M
Net Income12.29M11.27M10.24M6.22M9.13M31.53M
Balance Sheet
Total Assets128.96M177.07M154.90M117.04M117.96M112.56M
Cash, Cash Equivalents and Short-Term Investments10.16M17.54M12.84M16.91M28.41M30.98M
Total Debt6.76M6.87M10.32M694.00K6.52M11.13M
Total Liabilities5.84M43.77M41.00M19.95M23.14M30.87M
Stockholders Equity134.76M131.39M113.89M97.09M94.82M81.69M
Cash Flow
Free Cash Flow-6.48M1.32M19.12M4.85M2.75M22.07M
Operating Cash Flow40.77M39.09M45.21M27.75M22.49M35.11M
Investing Cash Flow-33.86M-30.70M-52.11M-23.98M-19.75M-8.41M
Financing Cash Flow-4.05M-3.69M2.83M-15.27M-5.32M-9.07M

Viemed Healthcare Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.08
Price Trends
50DMA
6.81
Positive
100DMA
7.10
Negative
200DMA
7.75
Negative
Market Momentum
MACD
0.06
Negative
RSI
60.78
Neutral
STOCH
82.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VMD, the sentiment is Neutral. The current price of 7.08 is above the 20-day moving average (MA) of 6.80, above the 50-day MA of 6.81, and below the 200-day MA of 7.75, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 82.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VMD.

Viemed Healthcare Risk Analysis

Viemed Healthcare disclosed 38 risk factors in its most recent earnings report. Viemed Healthcare 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

Viemed Healthcare Peers Comparison

Overall Rating
UnderperformOutperform
Sector (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
VMVMD
80
Outperform
$276.67M23.739.79%19.97%17.21%
60
Neutral
$237.83M15.298.12%5.96%-43.83%
56
Neutral
$275.75M0.65%61.50%34.99%
55
Neutral
$139.31M-407.50%32.24%-66.93%
54
Neutral
$274.75M-6.35%-32.70%94.89%
48
Neutral
$326.14M-30.11%15.32%15.73%
46
Neutral
C$192.85M-4.28-8.56%2.83%13.52%-1.74%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VMD
Viemed Healthcare
7.08
0.68
10.62%
RCEL
Avita Medical
5.17
-2.90
-35.94%
SNWV
Sanuwave Health
31.72
24.97
369.93%
TCMD
Tactile Systems Technology
10.13
-1.16
-10.27%
NNOX
Nano-X Imaging
5.33
-1.51
-22.08%
ZIMV
ZimVie Inc
10.01
-8.34
-45.45%

Viemed Healthcare Corporate Events

M&A TransactionsBusiness Operations and Strategy
Viemed Healthcare Completes Acquisition of Lehan’s Medical Equipment
Positive
Jul 2, 2025

On July 2, 2025, Viemed Healthcare announced the completion of its acquisition of Lehan’s Medical Equipment, a provider of home medical equipment based in Illinois, for a base purchase price of $26 million plus contingent payments. This acquisition is expected to enhance Viemed’s market presence by combining Lehan’s established brand and expertise with Viemed’s national scale and care delivery model. Viemed plans to update its full-year 2025 financial guidance to reflect the acquisition’s contribution when reporting earnings for the quarter ended June 30, 2025.

The most recent analyst rating on (VMD) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Viemed Healthcare stock, see the VMD Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Viemed Healthcare Announces Share Repurchase Program
Positive
Jun 9, 2025

On June 6, 2025, Viemed Healthcare announced that its Board of Directors approved a share repurchase program, allowing the company to buy back up to 1,976,441 common shares, representing approximately 5% of the total issued and outstanding shares as of March 31, 2025. This move, effective through June 2026, is part of Viemed’s strategy to enhance shareholder value, supported by strong first-quarter results and ample liquidity, including a $55 million credit facility, while continuing to fund its growth initiatives.

The most recent analyst rating on (VMD) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Viemed Healthcare stock, see the VMD Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Viemed Healthcare Shareholders Approve Key Decisions at Meeting
Neutral
Jun 5, 2025

On June 5, 2025, Viemed Healthcare, Inc. held its Annual General and Special Meeting of Shareholders, where several key decisions were made. Shareholders approved an amendment to the 2024 Long Term Incentive Plan, which increases the number of shares available, clarifies vesting in the event of a change in control, and sets a minimum one-year vesting period. Additionally, all seven director nominees were elected, Ernst & Young LLP was appointed as the independent auditor, and the executive compensation package was approved. The frequency of future advisory votes on executive compensation was also set to occur annually.

The most recent analyst rating on (VMD) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Viemed Healthcare stock, see the VMD Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Viemed Healthcare Announces Acquisition of Lehan Drugs
Positive
May 6, 2025

On May 6, 2025, Viemed Healthcare announced its definitive agreement to acquire Lehan Drugs, Inc., a provider of home medical equipment based in Illinois, for $26 million. This strategic acquisition, expected to close in the third quarter of 2025, aims to diversify Viemed’s product offerings into maternal health and expand its market presence, leveraging Lehan’s established reputation and community engagement in the healthcare sector.

Executive/Board Changes
Bruce Greenstein Resigns from Viemed Healthcare Board
Neutral
Apr 14, 2025

On April 14, 2025, Bruce Greenstein resigned from Viemed Healthcare‘s Board of Directors, where he served as Chairman of the Corporate Governance & Nominating Committee and a member of the Audit Committee. His resignation was not due to any disagreements with the company’s operations, policies, or practices, suggesting a smooth transition without immediate operational impacts.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 03, 2025