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1. Company Snapshot

1.a. Company Description

Medicover AB (publ) provides healthcare and diagnostic services in Germany, Sweden, Poland, Turkey, Belarus, Bulgaria, Georgia, Hungary, Serbia, Moldova, Ukraine, and India.It operates through two segment, Healthcare Services and Diagnostic Services.The company's diagnostic services comprise various tests, including allergy and autoimmune diagnostics, bacteriology, parasitology, biochemistry and immunochemistry, blood group diagnostics/transfusion medicine, tumour markers, clinical chemistry, cytology, haematology, histopathology, human genetics, hygiene, immunology and immunochemistry, infectious diseases, microbiology, molecular biology, and pharmacology/toxicology.


The company operates 97 clinical laboratories, 733 blood-drawing points, and 26 clinics in 10 countries; and 117 medical clinics, 20 fertility clinics, 52 dental clinics, 25 hospitals, and 25 gyms.It serves corporate and private customers, and patients, as well as public payers.Medicover AB (publ) was founded in 1995 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on MCOV

Medicover AB faces challenges amidst robust revenue growth. The company's Q3 2025 earnings call highlighted a 12.1% revenue increase, but also noted operational challenges. Uncertainty in European markets, with the STOXX Europe 600 Index experiencing mixed performances, may impact growth. Despite high insider ownership, indicating strong internal confidence, the company's ability to navigate evolving interest rate policies and trade concerns remains crucial. Recent earnings release showed resilience, but future performance hinges on managing operational challenges and strategic expansions.

1.c. Company Highlights

2. Medicover's Q3 2025: Solid Performance with Growth Across Segments

Medicover's Q3 2025 report shows a revenue of EUR 608.2 million, driven by a 9.6% growth in Healthcare Services to EUR 406.5 million and a 17.8% growth in Diagnostic Services to EUR 191.7 million. The company's EBITDA increased by 32% with an adjusted margin of 17.2%, indicating a significant improvement in profitability. Earnings per share (EPS) came in at EUR 1.43, beating estimates of EUR 1.01. The strong financial performance is a testament to the company's diversified revenue streams and efficient operations, as highlighted by the management's comment that "the company has a strong performance across both business units and continues to deliver solid organic growth driven by improved utilization and efficiency initiatives."

Publication Date: Nov -16

📋 Highlights
  • Revenue Growth:: Achieved EUR 608.2 million, with Healthcare Services up 9.6% (EUR 406.5M) and Diagnostics up 17.8% (EUR 191.7M).
  • EBITDA Expansion:: 32% growth in EBITDA with adjusted margin at 17.2%, driven by improved utilization and efficiency.
  • Operating Cash Flow:: Increased by 36.7% to EUR 98.8 million, reflecting strong liquidity and operational efficiency.
  • Margin Progress:: Margins expanded 150 bps quarterly, with 0.5% accretion expected in 2026 despite pricing pressures.
  • Guidance Confirmed:: Maintains full-year targets of EUR 2.2 billion revenue and EUR 350 million adjusted EBITDA, with leverage below 3.5x.

Segmental Performance

The Healthcare Services segment saw a strong organic growth of 12.4%, driven by high organic growth and improved utilization. Diagnostic Services also reported an organic growth of 12.4%, with strong demand from fee-for-service. India's growth was impacted by a conscious change in steering the business towards less governmental pay, resulting in an 8.8% growth in local currency.

Guidance and Outlook

Medicover maintained its full-year guidance, expecting to beat organic growth revenue of EUR 2.2 billion and adjusted organic EBITDA of EUR 350 million, with leverage below 3.5x. The company expects double-digit organic sales growth in 2026, excluding the impact of Hungary. The management is confident about the company's growth prospects, citing a broad base of propositions and a diversified revenue mix.

Valuation and Ratios

With a P/E Ratio of 75.43 and an EV/EBITDA of 13.59, Medicover's valuation suggests that the market has high expectations for the company's future growth. The ROIC of 12.3% indicates a strong return on invested capital, while the Net Debt/EBITDA ratio of 3.2x is within the company's target range. Analysts estimate next year's revenue growth at 13.0%, which may justify the current valuation to some extent.

Operational Highlights

The company has made significant progress in its sustainability initiatives, having validated its greenhouse gas emissions. Medicover is also exploring the potential listing of its Indian business, with a timeline of up to 2 years. The acquired businesses, including SYNLAB and CityFit, are performing well and contributing to the company's growth.

3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.41%)

6. Segments

Healthcare

Expected Growth: 8.37%

Medicover AB's 8.37% growth in Healthcare is driven by increasing demand for private healthcare services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digitalization, cost-effective solutions, and high-quality patient care have contributed to its growth. Furthermore, the growing need for healthcare services among an aging population and the increasing prevalence of chronic diseases have also fueled Medicover's growth.

Diagnostic

Expected Growth: 8.5%

Medicover AB's 8.5% growth is driven by increasing demand for private healthcare services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on preventive care, digitalization, and cost-effective solutions resonates with consumers, leading to higher sales and revenue growth.

Central/Other

Expected Growth: 8.37%

Central/Other segment of Medicover AB (publ) achieved 8.37% growth driven by increasing demand for healthcare services, strategic acquisitions, and expansion into new markets. Additionally, cost savings initiatives and operational efficiencies contributed to the segment's growth.

7. Detailed Products

Diagnostic Services

Medicover AB (publ) offers a wide range of diagnostic services including laboratory tests, imaging, and other diagnostic procedures to help healthcare professionals diagnose and treat patients.

Medical Consultations

Medicover AB (publ) provides medical consultations through its network of healthcare professionals, offering patients access to specialist care and second opinions.

Occupational Health Services

Medicover AB (publ) offers occupational health services to businesses, including health risk assessments, workplace health promotion, and employee wellness programs.

Healthcare Management

Medicover AB (publ) provides healthcare management services, including healthcare facility management, healthcare IT solutions, and healthcare consulting.

Medical Imaging

Medicover AB (publ) offers medical imaging services, including MRI, CT, and X-ray scans, to help healthcare professionals diagnose and treat patients.

8. Medicover AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Medicover AB (publ) operates in a highly competitive market, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Medicover AB (publ) has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand recognition and customer loyalty reduce the likelihood of customers switching to competitors.

Bargaining Power Of Suppliers

Medicover AB (publ) relies on a network of suppliers for medical equipment and services. While the company has some bargaining power due to its size, suppliers still have some negotiating power due to the specialized nature of the products and services they provide.

Threat Of New Entrants

The healthcare industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This reduces the threat of new entrants and allows Medicover AB (publ) to maintain its market position.

Intensity Of Rivalry

The healthcare industry is highly competitive, with many established players competing for market share. Medicover AB (publ) faces intense competition from other healthcare providers, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 66.90%
Debt Cost 6.57%
Equity Weight 33.10%
Equity Cost 11.17%
WACC 8.09%
Leverage 202.16%

11. Quality Control: Medicover AB (publ) passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Terveystalo

A-Score: 6.2/10

Value: 6.8

Growth: 5.4

Quality: 6.1

Yield: 7.5

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

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Galenica

A-Score: 6.0/10

Value: 4.0

Growth: 4.0

Quality: 4.9

Yield: 5.6

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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Fresenius Medical Care

A-Score: 5.2/10

Value: 7.1

Growth: 3.0

Quality: 3.4

Yield: 3.8

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Medicover

A-Score: 4.4/10

Value: 2.2

Growth: 6.8

Quality: 2.6

Yield: 1.2

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Orpea

A-Score: 4.2/10

Value: 10.0

Growth: 5.3

Quality: 5.1

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Select Medical

A-Score: 3.8/10

Value: 6.8

Growth: 4.3

Quality: 2.5

Yield: 3.0

Momentum: 1.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

227.0$

Current Price

227$

Potential

-0.00%

Expected Cash-Flows