The Canadian healthcare stocks on our list are poised to continue to produce healthy gains
SmallCapPower | May 15, 2020: On April 15, 2020, we wrote about three small Canadian healthcare stocks with excellent prognoses. One month later, the stocks we chose generated an average 30-day return of 40%. COVID-19 has shone a spotlight on healthcare and, despite current challenges, this space should enjoy good growth due to an aging North American population combined with the realization of better preparedness for the possibly of a future pandemic.
*Returns are based on closing stock prices as of May 14, 2020
Viemed Healthcare, Inc. (TSX:VMD) – $8.63
Viemed Healthcare provides in-home healthcare solutions in the United States. The Company provides respiratory services & related equipment, along with respiratory disease management, neuromuscular care, and oxygen-therapy services. Viemed also provides education and counseling to patients using its technology. Its Sleep Management, L.L.C. subsidiary focuses on disease management and improving the quality of life for respiratory patients through clinical excellence, education, and technology, while its Home Sleep Delivered, L.L.C. subsidiary focuses on providing in-home sleep testing for sleep apnea sufferers. On May 4, 2020, Viemed Healthcare announced first-quarter 2020 net revenue that increased 31% year over year to US$23.8 million, while net income for the period surged 117% to US$4.2 million.
Andlauer Healthcare Group Inc. (TSX:AND) – $24.94
Andlauer Healthcare Group is a supply chain management company that offers a platform of customized third-party logistics (3PL) and specialized transportation solutions for the healthcare sector. The Company’s 3PL services include customized logistics, distribution and packaging solutions for healthcare manufacturers across Canada. Andlauer Healthcare Group’s specialized transportation services, including air freight forwarding, ground transportation, dedicated delivery and last mile services, provide a one-stop shop for clients’ healthcare transportation needs. Andlauer Healthcare’s revenue has risen at a compound annual growth rate of approximately 10% since 2010, while EBITDA has increased at a compound annual growth rate of about 11% since 2016. The Company currently pays a quarterly dividend of $0.05 per share, giving its stock a yield of sub 1%. On May 11, 2020, Andlauer Healthcare Group reported first-quarter revenue that rose 14.4% to $81.7 million, while net income for the quarter increased 8.5% to $8.2 million.
WELL Health Technologies Corp. (TSX:WELL) – $1.71
WELL Health Technologies is leveraging disruptive trends in the health and wellness space by strategically pursuing a proven blueprint M&A strategy in order to maximize profitable growth in the space. Target acquisition companies will be across various vertical industries within the health and wellness space and will possess low capital requirements and high potential to exploit shifts in health trends. WELL Health is the third-largest digital Electronic Medical Records (EMR) supplier in Canada and is a provider of telehealth services. WELL owns and operates 21 healthcare clinics, provides digital EMR software and services to more than 1,500 clinics across Canada and is a majority owner of SleepWorks Medical. The Company’s revenue in 2019 more than tripled to $32,810,782 compared with 2018.
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