VMDViemed Healthcare, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (3.8×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 10% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is VMD?
Viemed Healthcare, Inc. earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.8 points above what the capital costs: growth creates value
- Operating margin
- 7.5%
Operating margin · Medical Devices median 2.1% · 12 months to Q2 2026
- Cash conversion
- 3.76×
Cash conversion · 2.91× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.10%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 20% |
| FY2021 | 9.9% |
| FY2022 | 5.9% |
| FY2023 | 7.8% |
| FY2024 | 8.0% |
| FY2025 | 8.5% |
Details›
- Gross margin12 months to Q2 2026
- 57%
- Operating margin12 months to Q2 2026
- 7.5%
- Net margin12 months to Q2 2026
- 4.8%
- Free cash flow margin
- 9.7%
- R&D as % of revenue
- 0.81%
- Revenue, trailing twelve months
- $302M
- Free cash flow, trailing twelve months
- $29M
- Net income, trailing twelve months
- $14M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.