EKF Diagnostics (EKF)

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The AIM listed point-of-care business

14-Mar-2017 – 26.25p – £120.1m – PER 25.0

Results For The 12 Months To End December 2017 – Revenue up 8% to £41.6m (2016: £38.6m), Gross Profit up 25% to £22.9m (2016: £18.3m), EPS 0.59p (2016: nil), Net Cash of £7.0m (31 Dec 2016: £2.2m). 2018 in-line with managements expectations.

I just cannot work out if this looks good or if it’s just average. The spidey senses are not triggering buy signals so for now I will remain Neutral.

9-Aug-2018 – 36.7p – £167.9m – PER 30.5

Trading Update – Marginally ahead.

I still can’t get past the valuation here, based on forecasts – I remain Neutral.

16-Jan-2019 – 31.3p – £142m – PER 24.1

Trading Update For The 12 Months To End December 2018 – EBITDA to be comfortably ahead of market expectations with Net Cash of £9.4m (£7m last time).

I still can’t see value here, will keep an eye out for Broker notes though.

Standard Tech Screen Qualifier
Latest Commentary – 25-Jul-2018 – 32.9p – £151.0m – PER 27.6

Based on Stockopedia data and the latest broker note from N+1 Singer on Research Tree dated 14-Mar-2018…

Revenue growth has been and is forecast to be <5% or so per year (2017A, 2018E, 2019E & 2020E) and after 0% EPS growth in 2017A, EPS growth in 2018E, 2019E and 2020E is forecast to be 20%, 0% and 10% respectively. With the PER approaching 30 it just seems too expensive here at this price.

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