Haemonetics (HAE) is seeing a lot more analyst coverage lately, a quality business with shares -14% YTD trading at 2018 levels with CSL headwinds. HAE valuation is starting to look overly cheap as an industry leader with a strong moat.

HAE technology addresses important medical markets: blood and plasma component collection, the surgical suite and hospital transfusion services.  Plasma includes plasma collection devices and disposables, donor management software and supporting software solutions sold to plasma customers.  Blood Center includes blood collection and processing devices and disposables for red cells, platelets and whole blood. Hospital is comprised of Interventional Technologies, which includes vascular closure devices and sensor-guided technologies, and Blood Management Technologies, which includes devices and methodologies for measuring coagulation characteristics of blood, specialized blood cell processing systems and disposables, surgical blood salvage systems and blood transfusion management software.

Strong end market demand for Ig replacement therapies and the planned expansion of fractionation capacity across the industry support long-term growth in the plasma collection market. Full market release of HAE’s Express Plus technology is now underway, significantly improving collection time, door-to-door time, and center throughput. HAE expects to gain additional market share in the US and globally to continue to deliver revenue growth that outpaces the plasma collections market.

HAE has a market cap of $3.75B and trades 13.55X Earnings, 10.4X EBITDA and 2.8X Sales with revenues seen rising 5-7% annually with EPS growth seen at 15%+ each of the next three years. HAE valuation on P/E is the cheapest in a decade despite EBIT margins in the 97^th percentile. The one caveat is the balance sheet with Debt/EBITDA at the 90^th percentile. Hospital reported revenue growth of 27% to 32% and organic revenue growth of 13% to 16% in FY 2025.