Patient Home Monitoring- a fast growing junior
On June 23,2015 Patient Home Monitoring(a junior health care company) released a press release showing that they had given a non-binding letter of intent to acquire a regional healthcare service in the mid-west United States.This company with a large patient data base has revenues in excess of $18.5 million and adjusted EBITDA of more than $6 million.This will make annualized PHM revenues of more than $175 million and annualized adjusted EBITDA of about $45 million.
Sketchy data
Patient Home Monitoring is a fast growing company and hasn't been around for long.There is a little information in the press release and little data in the data bases and only a little in the Canadian Business magazine.In order to get the right picture of Patient Home Monitoring you have to take from all three sources.Canadian Business shows that they are the second fastest growing junior (small cap) in the past year.It has increased in value by 600%;yet it does not yet pay a dividend.
Patient Home Monitoring now has annualized revenues of $115 million.And the regional business that it wants to acquire has achieved revenues of $18.5 million for year over year growth of 50%.PHM counts on cross-selling some of it's new services and products here.PHM intends to pay $24 million to acquire this junior health care junior.It adds that it still has due diligence to do and has not yet submitted a binding letter of intent.
Guidance for 2015
Patient Home Monitoring has annualized revenues now of $115 million. After this transaction is completed it will have $175 million of annualized revenues.It will also add $6 million of adjusted EBITDA with the new acquisition;this will make adjusted EBITDA of about $45 million for the year.Adjusted EBITDA is the best estimate of earnings. This level of adjusted EBITDA will produce e.p.s of about $.19 per share.This makes their price/earnings ratio at about 6 times and still makes PHM one of the cheapest priced health care stocks.It should go back up to it's former peak at abut $1.75 per share. after this transaction is completed.But not likely in the summer as the market has backed off it's recent peaks as well.That aside, look for PHM to be back at about $1.70 to $1.90 in October.
Sketchy data
Patient Home Monitoring is a fast growing company and hasn't been around for long.There is a little information in the press release and little data in the data bases and only a little in the Canadian Business magazine.In order to get the right picture of Patient Home Monitoring you have to take from all three sources.Canadian Business shows that they are the second fastest growing junior (small cap) in the past year.It has increased in value by 600%;yet it does not yet pay a dividend.
Patient Home Monitoring now has annualized revenues of $115 million.And the regional business that it wants to acquire has achieved revenues of $18.5 million for year over year growth of 50%.PHM counts on cross-selling some of it's new services and products here.PHM intends to pay $24 million to acquire this junior health care junior.It adds that it still has due diligence to do and has not yet submitted a binding letter of intent.
Guidance for 2015
Patient Home Monitoring has annualized revenues now of $115 million. After this transaction is completed it will have $175 million of annualized revenues.It will also add $6 million of adjusted EBITDA with the new acquisition;this will make adjusted EBITDA of about $45 million for the year.Adjusted EBITDA is the best estimate of earnings. This level of adjusted EBITDA will produce e.p.s of about $.19 per share.This makes their price/earnings ratio at about 6 times and still makes PHM one of the cheapest priced health care stocks.It should go back up to it's former peak at abut $1.75 per share. after this transaction is completed.But not likely in the summer as the market has backed off it's recent peaks as well.That aside, look for PHM to be back at about $1.70 to $1.90 in October.
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