Delivering a 33% p.a. total return over the last decade, Medistim has been a successful European compounder by dominating its niche. I will explore if it still has its best days ahead of it.
I very agree with your conclusions, I see it as a possible portfolio guardian at the appropriate multiples and waiting a possible expansion at other markets.
US is 1/3 of the total market, the most profitable market and the most difficult to penetrate. I think this warrants a larger presence to grow the installed base faster.
How could they be more aggressive? Simply hiring more sales employees. What would growth look like if they had 30 or 35 sales reps instead of 25?
Haven't asked mgmt directly, but I have spoken with some people that indicated reinvestment in general is being discussed and mgmt is open to it. No specifics though.
Its a Board decision anyways, so mgmt only can do it if Board decides to prioritize reinvestment over dividend.
I very agree with your conclusions, I see it as a possible portfolio guardian at the appropriate multiples and waiting a possible expansion at other markets.
Exactly, great company to own at the right price. Hope to see developments around capital allocation and growth.
If I look at the employee split, they have 1/4 of total people in the US...mostly sales.
How can they possibly be more agressive in that area?
US is 1/3 of the total market, the most profitable market and the most difficult to penetrate. I think this warrants a larger presence to grow the installed base faster.
How could they be more aggressive? Simply hiring more sales employees. What would growth look like if they had 30 or 35 sales reps instead of 25?
Have you had a chance to ask them about putting more weight behind US expansion?
Haven't asked mgmt directly, but I have spoken with some people that indicated reinvestment in general is being discussed and mgmt is open to it. No specifics though.
Its a Board decision anyways, so mgmt only can do it if Board decides to prioritize reinvestment over dividend.
Thanks a lot again! I also had Medistim on my radar but it didnt Flash me enough. Would appreciate an analysis for Eurofins :)
-17% today 🧐