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Interested in the healthcare sector? We ran a screen on medical device companies to find those with strong sales trends.

We began by compiling a universe of medical device companies of the healthcare sector and then we screened for those stocks with strong liquidity, with current ratios above 3. This indicates that these companies have liquid assets at least three times the value of their short-term liabilities.

We then screened for those stocks with strong sales trends, comparing growth in revenue to growth in accounts receivable. Since accounts receivable is the portion of revenue not yet received, and there is no guarantee the money will ever be received, the smaller the portion of revenue made up of receivables the healthier the company's revenue.

We screened for stocks seeing faster growth in revenue than accounts receivable year-over-year, as well as accounts receivable comprising a smaller portion of current assets over the same time period.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall (kapitall.com).

Do you think these companies should be trading higher? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. Edwards Lifesciences Corp. (EW): Offers products and technologies designed to treat advanced cardiovascular disease worldwide. Market cap at $11.58B, most recent closing price at $101.09. Current ratio at 4.48. Revenue grew by 13.52% during the most recent quarter ($459.2M vs. $404.5M y/y). Accounts receivable grew by -2.12% during the same time period ($346.7M vs. $354.2M y/y). Receivables, as a percentage of current assets, decreased from 30.79% to 29.18% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

2. Haemonetics Corp. (HAE): Provides blood management solutions to plasma and blood collectors, blood banks, hospitals and hospital service providers, and health organizations in the United States and internationally. Market cap at $1.9B, most recent closing price at $74.52. Current ratio at 4.03. Revenue grew by 9.79% during the most recent quarter ($186.67M vs. $170.03M y/y). Accounts receivable grew by 6.52% during the same time period ($135.46M vs. $127.17M y/y). Receivables, as a percentage of current assets, decreased from 28.33% to 25.7% during the most recent quarter (comparing 13 weeks ending 2012-03-31 to 13 weeks ending 2011-04-02).

3. Derma Sciences Inc. (DSCI): Engages in manufacturing, marketing, and selling wound care, wound closure and specialty securement devices, and skin care products. Market cap at $127.36M, most recent closing price at $9.95. Current ratio at 6.09. Revenue grew by 6.33% during the most recent quarter ($15.28M vs. $14.37M y/y). Accounts receivable grew by -4.8% during the same time period ($5.16M vs. $5.42M y/y). Receivables, as a percentage of current assets, decreased from 27.84% to 12.83% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

4. ICU Medical, Inc. (ICUI): Engages in the development, manufacture, and sale of disposable medical connection systems for use in vascular therapy applications in the United States and internationally. Market cap at $729.48M, most recent closing price at $51.59. Current ratio at 9.84. Revenue grew by 5.65% during the most recent quarter ($75.51M vs. $71.47M y/y). Accounts receivable grew by -17.51% during the same time period ($41.73M vs. $50.59M y/y). Receivables, as a percentage of current assets, decreased from 22.69% to 15.12% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

5. ArthroCare Corporation (ARTC): Develops, manufactures, and markets surgical products primarily based on its minimally invasive patented Coblation technology. Market cap at $829.8M, most recent closing price at $30.0. Current ratio at 5.96. Revenue grew by 5.62% during the most recent quarter ($92.87M vs. $87.93M y/y). Accounts receivable grew by 2.22% during the same time period ($49.17M vs. $48.1M y/y). Receivables, as a percentage of current assets, decreased from 18.41% to 16.92% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 5 Highly Liquid Medical Device Stocks With Encouraging Receivable Trends