Haemonetics Corp (HAE) stock analysis

P/E above its 5-year median

Haemonetics's P/E of 53.8 is above its own 5-year median of 36.2.

P/E above the industry

Haemonetics's P/E of 53.8 is above the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.

EV/EBITDA above its 5-year median

Haemonetics's EV/EBITDA of 22.2 is above its 5-year median of 18.7.

P/B above the industry

Haemonetics's price-to-book of 6.10 is above the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

Trading above fair value

The share price of $120.54 is above our fair value estimate of $76.04.

Margin of safety under 20%

The price is 58.5% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -2.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -38.2% over the last twelve months, against a 5-year average of 4.1% a year.

Growing slower than the industry

Revenue grew 4.1% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

Guidance issued

The latest outlook (fiscal 2027 Organic Revenue, May 7, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 59.6% over the last twelve months, against 58.3% a year earlier.

Return on equity under 15%

Return on equity was 11.9% over the last twelve months and averaged 12.9% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 7.3%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Haemonetics's return on equity of 11.9% is above the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.

Earnings grew over 5 years

Net income grew 4.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 7.5% over the last twelve months, against a 5-year average of 8.6%.

Net margin above the industry

Haemonetics's net margin of 7.5% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

High debt

Debt is 125% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 96.7% five years ago to 125%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 30.7% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.84 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.48; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Haemonetics has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.