Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

ExamWorks: Deeper Financial Examination Poses Pertinent Questions

ExamWorks Group Inc. (NYSE:EXAM) is trading close to its all-time high, flying high on the promise of the company emerging as a consolidator in the highly fragmented Independent Medical Examination (IME) industry. Theoretically, growth via acquisitions and earnings improvement through operations consolidation is a great business model, especially if your stock is trading at 20 times EV/ EBITDA and you can acquire businesses at 5-7 times EV/EBITDA. But before joining the party, there are some fundamental and financial questions that should be answered.

The bull side thesis is built upon the idea of a consolidator disrupting the fragmented industry and the whole business model can be summed as:

    Growth via acquisitions Operating leverage via scale and efficiencies Create ...
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details