Haemonetics Corporation Common Stock (HAE)

FairStock Score: 61/100 — STEADY

Key Financials

Strengths

• Generates $335 million in annual free cash flow (12.0% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 19.3% above cost of capital

Concerns

• Trades significantly above Graham Number ($40) with negative 50% margin of safety—limited downside protection
• Revenue declining at 2.8% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 1.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Haemonetics Corporation Common Stock is a small-cap healthcare company valued at $2.8 billion. The business generates $1.3 billion in annual revenue with a 3.4% net margin and $335 million in free cash flow. From a quality standpoint, Haemonetics shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 1.7 warrants caution. On valuation, the stock is reasonably priced at 16.4x earnings, with trades above its Graham Number with a negative 50% margin. Growth dynamics show revenue growing at -2.8% and profit growth of 19.3%. Our composite FairStock Score of 61/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $335 million in annual free cash flow (12.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer