Nasdaq:LMAT
LEMAITRE VASCULAR INC
A high-growth US-based medical device company specializing in endovascular solutions for cardiovascular disease treatment.
Key Metrics
Investment Thesis
Bull Case
Investors should consider LMAT due to its impressive five-year revenue CAGR and expanding net income margins driven by successful product launches. The company's robust cash flow generation allows for potential organic growth without heavy reliance on external financing despite the investing outflows. A specialized market position in endovascular solutions offers high visibility into the growing cardiovascular care demand.
Bear Case
The substantial retained earnings deficit of $184.7M and large long-term liabilities of $222.2M raise concerns about the company's balance sheet strength and solvency. High marketing expenses of $54.5M relative to operating income suggest an aggressive spend strategy that may not yet be fully profitable in all segments. Regulatory changes or patent expirations on key stent technologies could disrupt the current growth trajectory.
About LEMAITRE VASCULAR INC
Lemaître Vascular Inc (LMAT) designs and manufactures advanced endovascular solutions primarily serving interventional cardiologists and vascular surgeons. The company focuses on innovative products such as stents, catheters, and access systems to treat cardiovascular diseases across the United States. With consistent revenue growth from $161.7M in 2022 to $249.6M in 2025, the firm demonstrates strong market traction in the specialized medical device sector.
Analysis
Management Discussion
Management successfully executed a growth strategy that propelled net income from $20.6M in 2022 to $57.7M in 2025, reflecting improving operational efficiency and market adoption. Strong operating cash flow of $81.3M allowed the company to fund acquisitions totaling $1.9M while returning capital through dividends and share repurchases. However, the significant investing outflow of $64.9M suggests ongoing strategic investments or portfolio adjustments that warrant close monitoring.
Industry Overview
The endovascular device market is experiencing rapid expansion due to aging demographics and advancements in minimally invasive surgical techniques. Competitors include large conglomerates like Medtronic and Boston Scientific, creating a competitive environment where innovation is critical for survival. Regulatory pathways such as FDA approval processes remain rigorous, requiring significant time and capital before new products reach the market.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $161.7M | $193.5M | $219.9M | $249.6M |
| Cost of Revenue | $56.8M | $66.4M | $69.0M | $71.1M |
| Gross Profit | $104.9M | $127.0M | $150.9M | $178.5M |
| Operating Expenses | $78.1M | $90.3M | $98.6M | $110.6M |
| Operating Income | $26.8M | $36.7M | $52.3M | $67.9M |
| R&D | $13.3M | $17.0M | $15.7M | $14.1M |
| G&A | $28.7M | $31.8M | $36.3M | $42.0M |
| Marketing | $32.9M | $41.1M | $46.7M | $54.5M |
| Stock-Based Comp | $4.2M | $5.3M | $6.6M | $7.8M |
| D&A | $9.4M | $9.5M | $9.7M | $10.4M |
| Depreciation | $3.2M | $3.4M | $3.8M | $4.8M |
| Amortization | $6.2M | $6.1M | $5.8M | $5.6M |
| Other OpEx | $3.1M | $485.0K | $0 | $0 |
| Non-Operating Income | $661.0K | $2.8M | $4.6M | $7.3M |
| Interest Expense | $0 | $0 | $205.0K | $5.2M |
| Interest Income | $986.0K | $3.1M | $4.9M | $13.1M |
| Pre-Tax Income | $27.5M | $39.5M | $56.9M | $75.2M |
| Income Tax | $6.9M | $9.4M | $12.8M | $17.4M |
| Continuing Ops | $20.6M | $30.1M | $44.0M | $57.7M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $20.6M | $30.1M | $44.0M | $57.7M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $20.6M | $30.1M | $44.0M | $57.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $161.7M | $194.6M | $402.2M | $468.2M |
| Cash & Equivalents | $19.1M | $24.3M | $25.6M | $28.2M |
| Accounts Receivable | $22.0M | $25.1M | $30.1M | $33.6M |
| Prepaid Expenses | $6.7M | $6.4M | $7.5M | $5.1M |
| Other Current Assets | $113.8M | $138.9M | $339.0M | $401.3M |
| Long-Term Assets | $148.7M | $152.2M | $149.6M | $147.5M |
| PP&E (Net) | $17.9M | $21.8M | $24.8M | $27.0M |
| Intangibles | $46.5M | $41.7M | $35.8M | $33.1M |
| Goodwill | $65.9M | $65.9M | $65.9M | $65.9M |
| Operating Leases | $15.6M | $18.0M | $16.8M | $15.8M |
| Other LT Assets | $2.7M | $4.7M | $6.3M | $5.7M |
| Total Assets | $310.5M | $346.8M | $551.8M | $615.7M |
| Current Liabilities | $25.3M | $29.9M | $30.6M | $36.3M |
| Accounts Payable | $2.9M | $3.7M | $1.8M | $3.6M |
| Current Leases | $1.9M | $2.5M | $2.7M | $2.9M |
| Other Current Liab | $573.0K | $24.0K | $1.4M | $322.0K |
| Long-Term Liabilities | $16.9M | $19.0M | $183.9M | $185.9M |
| LT Operating Leases | $14.7M | $16.6M | $15.2M | $14.0M |
| Other LT Liab | $1.6M | $1.7M | $168.1M | $171.3M |
| Total Liabilities | $42.3M | $48.9M | $214.5M | $222.2M |
| Shareholders' Equity | $268.2M | $297.9M | $337.3M | $393.5M |
| Retained Earnings | $97.8M | $115.4M | $145.1M | $184.7M |
| AOCI | $-6.0M | $-4.6M | $-6.2M | $-2.4M |
| Treasury Stock | $13.0M | $13.9M | $15.6M | — |
| Total L&E | $310.5M | $346.8M | $551.8M | $615.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $20.6M | $30.1M | $44.0M | $57.7M |
| Non-Cash Adjustments | $-2.5M | $-4.0M | $-7.9M | $17.0M |
| Working Capital Changes | $7.3M | $10.7M | $8.0M | $6.5M |
| Cash from Operations | $25.4M | $36.8M | $44.1M | $81.3M |
| Cash from Investing | $-10.4M | $-24.7M | $-200.1M | $-64.9M |
| Share Buybacks | $642.0K | $853.0K | $1.7M | $1.8M |
| Dividends Paid | $11.0M | $12.4M | $14.4M | $18.1M |
| Cash from Financing | $-9.2M | $-7.1M | $158.1M | $-14.5M |
| FX Effect | $-494.0K | $230.0K | $-765.0K | $864.0K |
| Net Change in Cash | $5.3M | $5.1M | $1.3M | $2.6M |
| Beginning Cash | $13.9M | $19.1M | $24.3M | $25.6M |
| Ending Cash | $19.1M | $24.3M | $25.6M | $28.2M |
Frequently Asked Questions
How does LEMAITRE VASCULAR INC make money?
The company derives revenue from its core endovascular product lines including coronary and peripheral stents, access systems, and related catheter technologies sold to healthcare providers nationwide.
What are the main risks for LMAT?
The medical device industry faces intense pricing pressure from payers and regulators which could impact gross margins despite current growth. As a small-cap company with total assets of $615.7M, LMAT is susceptible to supply chain disruptions affecting the manufacturing of complex stents. The company has a significant retained earnings deficit of $184.7M requiring careful capital allocation and monitoring of debt levels against long-term liabilities of $222.2M.
What is LMAT's competitive advantage?
Lemaître Vascular leverages a proprietary technology platform that differentiates its products in the crowded stent market. The firm benefits from a streamlined cost structure evidenced by low accounts payable relative to receivables and strong cash flow generation of $81.3M. Strategic focus on innovative access systems creates a niche advantage against larger competitors.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.