Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 26 Feb, 26 | VMD | Buy | USD 8.61 | USD 9.05 | USD 9.6 | 6 days | Closed |
5.46%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Viemed Healthcare, Inc., together with its subsidiaries, provides home medical equipment (HME) and post-acute respiratory healthcare services to patients in the United States. It provides respiratory disease management solutions, including treatment of chronic obstructive pulmonary disease (COPD), which include non-invasive ventilation, percussion vests, and other therapies; and invasive and non-invasive ventilation and related equipment and supplies to patients suffering from COPD. The company leases non-invasive and invasive ventilators, positive airway pressure machines (PAP), durable medical equipment, percussion vests, oxygen concentrators, and other medical equipment; and sells and rents HME devices. In addition, it provides neuromuscular care and oxygen therapy services; and sleep apnea management provides sleep solutions and/or equipment, such as PAP, automatic continuous positive airway pressure, and bi-level positive airway pressure machines. Further, the company offers in home sleep apnea testing services, as well as healthcare staffing and recruitment services. Viemed Healthcare, Inc. was founded in 2006 and is headquartered in Lafayette, Louisiana.
Strong Revenue Expansion: Q3 FY25 revenue increased to USD 71.9 million compared to Q3 FY24 (implied ~USD 58.0 million based on 24% YoY growth), reflecting robust organic growth and acquisition accretion
Sleep Patient Growth Momentum: New sleep patient starts surged 96% YoY in Q3 FY25 versus Q3 FY24, while resupply patients increased 51% YoY , strengthening recurring revenue visibility
Slower Growth in Ancillary Staffing Services: Management revised expectations for lower-margin ancillary services, including staffing, to grow slower than previously projected in Q3 FY25 versus earlier outlook assumptions
Sequential Revenue Per Patient Softness (Sleep): Sequential revenue per sleep patient showed moderation in Q3 FY25 due to the increasing mix of resupply patients relative to therapy rentals
VieMed’s investment case remains exposed to reimbursement and regulatory risk (including Medicare policy changes and competitive bidding), margin pressure from evolving service mix, and execution risk associated with rapid geographic expansion and acquisition integration
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 8.61 | 7.5 | 9.05 | 9.6 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Record Revenue Growth and Top-Line Expansion: During Q3 FY25, VieMed delivered record quarterly revenue of USD 71.9 million, representing 24% year-over-year growth and 14% sequential growth, driven by strong organic expansion and the full-quarter contribution from the Lehan’s Medical Equipment acquisition. The performance reflects sustained demand across core service lines and effective integration of acquired operations.
Profitability and Margin Performance: Gross profit for the quarter reached USD 41.3 million, translating into a 57.5% gross margin, while Adjusted EBITDA increased 16% year-over-year to USD 16.1 million, representing a 22.4% EBITDA margin. Despite continued investment in diversification initiatives, the company maintained strong operating leverage and profitability metrics.
Net Earnings and Shareholder Returns: Net income for Q3 FY25 totaled USD 3.5 million, equivalent to USD 0.09 per diluted share. Additionally, during the quarter, the company completed its 2025 share repurchase program, buying back nearly 2 million shares at an average price of approximately USD 6.69, reinforcing its disciplined capital allocation strategy.
Sleep Segment Acceleration and Recurring Revenue Expansion: The sleep business demonstrated significant momentum, with new patient starts increasing 96% year-over-year, while the resupply population grew 51% year-over-year and 33% sequentially. Importantly, the resupply population surpassed the PAP therapy rental base for the first time, underscoring the growing contribution of recurring revenue streams.
Ventilation and Diversification Strategy: Ventilation revenue continued to post double-digit year-over-year growth, although it now accounts for less than half of total net revenue, marking a strategic diversification milestone. The expanding mix of sleep, staffing, and maternity services reflects management’s long-term objective of building a more resilient and diversified revenue base.
Cash Flow Generation and Capital Structure Strength: Trailing twelve-month free cash flow reached USD 23.3 million, reflecting strong operational cash conversion and disciplined capital expenditure management. At quarter-end, the company held USD 11.1 million in cash, USD 5.8 million in working capital, and USD 19.6 million in long-term debt, with USD 5 million repaid subsequent to quarter-end. This balance sheet strength provides flexibility for acquisitions and growth initiatives.
Operational Efficiency and Cost Management: SG&A expenses improved to 44.4% of revenue, representing a 160 basis point year-over-year improvement and 130 basis points sequentially, driven by evolving product mix and disciplined cost controls. These efficiencies partially offset pressure from lower-margin ancillary service growth.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to Viemed Healthcare, Inc. (NASDAQ: VMD) at the closing market price of USD 8.61, as on Feb 25, 2026
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Medical Devices
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| VMD Viemed Healthcare Inc |
0.11 1.04% | 10.64 | 28.40 | 16.89 | 1.73 | 2.78 | 1.71 | 8.55 |
| ABT Abbott Laboratories |
-0.09 0.10% | 88.41 | 25.97 | 17.24 | 3.57 | 3.20 | 3.81 | 16.75 |
| SYK Stryker Corporation |
6.66 2.21% | 307.80 | 44.07 | 24.94 | 5.51 | 6.12 | 6.05 | 25.73 |
| MDT Medtronic PLC |
1.20 1.54% | 79.34 | 26.60 | 15.87 | 3.35 | 2.08 | 3.90 | 14.12 |
| BSX Boston Scientific Corp |
0.34 0.76% | 45.29 | 31.49 | 17.24 | 4.41 | 3.65 | 4.88 | 19.19 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on February 26, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
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Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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