LeMaitre Vascular Inc. Common Stock (LMAT)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Generates $47 million in annual free cash flow (1.8% yield on market cap)
• Solid return on equity of 15.8% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.47, providing financial flexibility
• Altman Z-Score of 8.4 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 15.7% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($31) with negative 260% margin of safety—limited downside protection

AI Analysis

LeMaitre Vascular Inc. Common Stock is a small-cap healthcare company valued at $2.6 billion. The business generates $250 million in annual revenue with a 6.2% net margin and $47 million in free cash flow. From a quality standpoint, LeMaitre shows Altman Z-Score of 8.4 confirms fortress-level solvency and adequate 16% ROE. On valuation, the stock is commanding a steep 44.8x multiple, with trades far above its Graham Number ($31) with no margin of safety. Growth dynamics show revenue growing at 15.7% and profit growth of 39.3%. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

LeMaitre's 16% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $47 million in annual free cash flow (1.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 45x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. 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