The Medical Device Hidden Gem That Trades 3x Cheaper Than Competitors

As affluence rises and longevity increases, it is likely that humans will experience more incidences of blocked arteries. One common method to unblock these vessels is to use a balloon to inflate the vessels and insert a stent during surgery.

Projections for the demand for stents and balloons vary, but the consensus indicates a growth rate of about 5% CAGR through 2030 and beyond. This increase is often attributed to the rising trends in obesity and the effects of aging.

In this article, we share our perspectives on a company that specializes in manufacturing these stents and balloons, poised to benefit from these growth trends.

The company has achieved a remarkable 22% annual revenue growth over the past three years. It boasts strong profitability, with a net profit margin of 29% and a free cash flow margin of 11%. It also reports respectable returns on equity (ROE) and assets (ROA), both at 13% and 12%, respectively. Due to its profitability, the company issued its first-ever dividend for FY23.