Nasdaq:VMD
VIEMED HEALTHCARE, INC.
A growing healthcare tech firm delivering specialized solutions to hospital systems with robust revenue expansion and improving profitability margins.
Key Metrics
Investment Thesis
Bull Case
VMD presents a compelling growth story with revenue expanding at a double-digit pace and operating profit reaching $17.9M, supported by a healthy cash conversion ratio where CFO exceeds net income significantly.
Bear Case
Bearish concerns include substantial other investing outflows of $71.5M which may indicate aggressive M&A or asset sales, alongside a retained earnings deficit of $89.7M that suggests historical cash burn despite recent improvements.
About VIEMED HEALTHCARE, INC.
VIEMED HEALTHCARE, INC. (VMD) is a healthcare technology provider serving hospitals and medical centers with revenue of $224.3M in 2024, reporting net income of $11.4M and maintaining strong cash positions alongside significant capital investments in infrastructure.
Analysis
Management Discussion
Management has successfully executed a growth strategy evidenced by revenue jumping from $138.8M in 2022 to $224.3M in 2024, while net income grew steadily from $6.2M to $11.4M over the same period.
Industry Overview
The healthcare technology sector is characterized by rapid innovation and regulatory scrutiny, where companies like VMD must balance high R&D investments with the need to maintain strong liquidity in an environment of rising operating expenses.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $138.8M | $183.0M | $224.3M |
| Cost of Revenue | $54.2M | $70.2M | $91.1M |
| Gross Profit | $84.7M | $112.8M | $133.2M |
| Operating Expenses | $76.4M | $98.5M | $115.3M |
| Operating Income | $8.3M | $14.3M | $17.9M |
| R&D | $2.7M | $2.8M | $3.1M |
| G&A | $68.2M | $87.9M | $106.2M |
| Stock-Based Comp | $5.2M | $5.8M | $6.3M |
| D&A | — | $21.9M | $25.4M |
| Depreciation | $15.6M | — | — |
| Amortization | — | $75.0K | $100.0K |
| Other OpEx | $5.6M | $7.8M | $6.0M |
| Non-Operating Income | $738.0K | $61.0K | $-1.7M |
| Pre-Tax Income | $9.0M | $14.4M | $16.2M |
| Income Tax | $2.8M | $4.1M | $4.8M |
| Continuing Ops | $6.2M | $10.2M | $11.4M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $6.2M | $10.2M | $11.4M |
| Minority Interest | $0 | $0 | $144.0K |
| Net to Common | $6.2M | $10.2M | $11.3M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $39.7M | $38.4M | $52.9M |
| Cash & Equivalents | $16.9M | $12.8M | $17.5M |
| Accounts Receivable | $15.4M | $18.5M | $24.9M |
| Inventory | $3.6M | $4.6M | $4.3M |
| Prepaid Expenses | $3.8M | $2.4M | $6.1M |
| Other Current Assets | $26.0K | $0 | $0 |
| Long-Term Assets | $77.3M | $116.5M | $124.2M |
| PP&E (Net) | — | $73.6M | $76.3M |
| Intangibles | — | $567.0K | $848.0K |
| Goodwill | — | $29.8M | $33.0M |
| Operating Leases | — | $2.9M | $2.8M |
| Other LT Assets | $76.5M | $9.4M | $11.2M |
| Total Assets | $117.0M | $154.9M | $177.1M |
| Current Liabilities | $18.9M | $32.1M | $37.3M |
| Current Debt | $0 | $1.1M | $409.0K |
| Current Leases | — | $678.0K | $811.0K |
| Deferred Revenue | $4.6M | $6.2M | $6.7M |
| Taxes Payable | — | $2.2M | $3.9M |
| Other Current Liab | $3.1M | $4.4M | $5.4M |
| Long-Term Liabilities | $1.1M | $8.9M | $6.4M |
| Long-Term Debt | $0 | $6.0M | $3.6M |
| LT Operating Leases | — | $2.2M | $2.0M |
| Other LT Liab | $1.1M | $690.0K | $846.0K |
| Total Liabilities | $19.9M | $41.0M | $43.8M |
| Shareholders' Equity | $97.1M | $113.9M | $133.3M |
| Retained Earnings | $69.8M | $79.5M | $89.7M |
| AOCI | $0 | — | — |
| Total L&E | $117.0M | $154.9M | $177.1M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $6.2M | $10.2M | $11.4M |
| Non-Cash Adjustments | $1.5M | $28.5M | $17.4M |
| Working Capital Changes | $20.1M | $6.5M | $10.3M |
| Cash from Operations | $27.7M | $45.2M | $39.1M |
| Capital Expenditures | $22.9M | $26.1M | $37.8M |
| Cash from Investing | $-24.0M | $-52.1M | $-30.7M |
| Share Buybacks | $9.6M | $0 | $0 |
| Cash from Financing | $-15.3M | $2.8M | $-3.7M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-11.5M | $-4.1M | $4.7M |
| Beginning Cash | $28.4M | $16.9M | $12.8M |
| Ending Cash | $16.9M | $12.8M | $17.5M |
Frequently Asked Questions
How does VIEMED HEALTHCARE, INC. make money?
Revenue is driven by core medical device or software sales supported by substantial R&D spending of $3.1M and general administrative costs of $106.2M, while the company manages a significant goodwill balance of $33.0M indicating prior strategic acquisitions.
What are the main risks for VMD?
Investors should monitor the high level of goodwill at risk of impairment, potential volatility from large other investing outflows of $71.5M, and the reliance on non-operating income losses which impacted profit before tax.
What is VMD's competitive advantage?
The company leverages a strong cash flow from operations of $39.1M to fund its capital expenditures of $37.8M, creating a resilient balance sheet with $17.5M in cash equivalents and minimal common share repurchases pressure.
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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.