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Semler Scientific: Growth, Profits, And Valuation Models Support A Buy

Aug. 02, 2022 4:05 AM ETSemler Scientific, Inc. (SMLR)5 Comments


  • Semler Scientific's stock value has fallen from about $150 per share in November of 2021 to around $30 per share. Yet, the company continues to report growth and is profitable.
  • I believe the market has taken the selling too far and is overlooking the company’s unique product and intrinsic valuations.
  • I am looking to find a spot for SMLR in the Compounding Healthcare “Bio Boom” Portfolio in anticipation the market will price the ticker appropriately.
  • I discuss how I plan on accumulating SMLR and managing the position in the second half of 2022.
  • This idea was discussed in more depth with members of my private investing community, Compounding Healthcare. Learn More »

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The recent sell-off in equities has crushed many small-cap companies due to their apparent risks and need for fundraising. Semler Scientific (NASDAQ:SMLR) has seen its stock's value fall from about $150 per share in November of 2021

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This article was written by

Biologics profile picture

Biologics is a full-time healthcare investor who developed a passion for biotech and life saving therapies after working in the medical field for years. His trade focus is around innovative companies developing breakthrough therapies and/or pharmaceuticals with catalysts for potential acquisitions.

He is the leader of the investing group Compounding Healthcare. Features of the group include: Several model healthcare portfolios, a weekly newsletter, a daily watchlist, and chat for dialogue and questions. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SMLR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (5)

Miles LaMaire profile picture
Looks like earnings were pretty good today. EPS of $0.60 beating estimates of $0.40. 4% revenue growth. Will be adding a little bit more to my position tomorrow.
I actually do like this company and its financial position. I took an initial position before it tanked on macro and the slowing growth concerns. Haven't added yet but certainly intend to with good guidance. One other risk to call out is the customer concentration. Over the last several ER's its definitely stood out and would love to see progress on that.
normark profile picture
In spite of all the rekommandations, the CEO of Semler has sold shares in his company all the times from 2020-12-02 until 2022-03-01 according openinsider.com. There has been no purchases until now.
Miles LaMaire profile picture
Great article. I just found this company yesterday while running some screeners and it caught my eye. Assuming the same revenue growth they have seen in the past continue, this is no doubt a winner. Will be curious to see what comes out of earnings today.
EconAnalyst profile picture
@Miles LaMaire agreed. I doubt historic revenue growth will continue at the hyper growth rates and I think the market's realization of this has contributed to the steep decline in share price. The good news is that you hardly need any growth to justify the current valuation. So long as Semler continues to execute and maintain revenue and margins, the stock should do well in the long run. Above $100 a share you definitely need a few years of 25%+ growth. At $30, you just need to stay in business.
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