Haemonetics designs, manufactures, and markets blood management solutions. The Company serves in three markets, such as manufacturers of plasma-derived pharmaceuticals, blood collectors, and hospitals. The company was founded in 1971 and is based in Braintree, Massachusetts.
HAE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Haemonetics Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Haemonetics Corp ranked in the 20th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Haemonetics Corp ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 7.13; that's higher than 60.35% of US stocks in the Healthcare sector that have positive free cash flow.
93% of the company's capital comes from equity, which is greater than 83.41% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 7% of the company's capital is sourced from debt; this is greater than merely 16.55% of the free cash flow producing stocks we're observing.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as HAE, try CNC, DHR, AZN, PKI, and PPD.