LeMaitre Vascular

LeMaitre Vascular Inc earns a 4-star quantitative star rating, indicating our belief that this share class offers a somewhat attractive opportunity for investors. The stock currently trades at a 15% discount to our quantitative fair value estimate of $95.87 per share, which is reinforced by this estimate's low uncertainty rating.

The firm's solid growth strengthens our valuation estimate. Consistent revenue and earnings growth indicates a company's potential for increased market share and profitability. Reflecting the firm's growth is its EPS 5-year growth of 14.1%, which sits in the top 40% compared with global peers. The robust five-year track record of EPS growth is reason to be optimistic about the firm's shares. We believe this is a sign that shares could be undervalued.

Alternatively, the company's valuation metrics are potentially concerning. A company's valuation metrics provide insights into the market's expectations for its future growth and profitability. The firm's book value yield of 23.3%, a core component of valuation, sits in the bottom 20% compared with global peers. The market value of this company's shares looks expensive relative to the book (accounting) value of equity, which, despite our favorable price/fair value ratio, is a negative attribute.

In addition to the aforementioned drivers, our model considers momentum as part of its comprehensive analysis. This share class has been a laggard relative to the broader universe over the past year. This underperformance makes the stock appear cheap, which portends a buying opportunity in light of other contributors to our model.

The narrow moat rating for this company indicates investors can expect it to generate 10 years or more of excess returns on capital due to its respectable competitive advantages. Its moat is bolstered by its strong financial health, which indicates low near-term bankruptcy risk.