CareMax: Numbers Are Strong, Compelling Value On Offer

Sep. 16, 2022 7:03 PM ETCareMax, Inc. (CMAX)AMZN
Zach Bristow profile picture
Zach Bristow


  • CareMax has caught a strong bid lately following a number of catalysts that deliver forward earnings growth.
  • Shares appear to be fairly valued at current multiples, although, negative earnings are also noted.
  • Alas, the Steward Healthcare transaction provides meaningful accretion to pre and post-tax earnings.
  • Net-net, CMAX presents with compelling value and I rate it a speculative buy.

Two doctors looking at patient data on digital tablet


Investment summary

Recent company-specific tailwinds have seen shares of CareMax, Inc. (NASDAQ:CMAX) catch a strong bid in H2 FY22 and re-rate to the upside. Whilst there's an element that's beta-related from the July bounce in equities, there's still plenty


Data: CMAX 10-Q Q2 FY22, pp.26: "Platform Contribution"; see: table, "Non-GAAP Operating Metrics".


Note: All figures in $mm or [%]. "Operating leverage from Centres to PCM" defined as QoQ percentage change in new centres / change in platform contribution margin. (Image: HB Insights. Data: HB Insights, CMAX SEC Filings)


Note: 12-month chart shown with daily bars, with momentum and on balance volume in the 2 subsequent windows, respectively. (Data: HB Insights, Refinitiv Eikon)


Data: Refinitiv Eikon


Data: HB Insights, Refinitiv Datastream

This article was written by

Zach Bristow profile picture
Buy side equity strategist conducting a blend of fundamental, technical, long-term analysis across the broad healthcare, commodities and industrials spectrum in developed markets. Helping you position your portfolios for the future is my top priority. Shoot me a message to discuss trade ides or talk portfolio construction. Disclaimer:The opinions expressed in all articles do not constitute as investment advice. Please remember to conduct your own due diligence.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Short position through short-selling of the stock, or purchase of put options or similar derivatives in CMAX 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.

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