LeMaitre Vascular, Inc. (LMAT) | Investment Case

1. Company Snapshot

1.a. Company Description

LeMaitre Vascular, Inc.designs, markets, sells, services, and supports medical devices and implants for the treatment of peripheral vascular disease worldwide.It offers angioscope, a fiberoptic catheter used for viewing the lumen of a blood vessel; embolectomy catheters to remove blood clots from arteries or veins; occlusion catheters that temporarily occlude the blood flow; perfusion catheters to perfuse the blood and other fluids into the vasculature; and thrombectomy catheters, which features a silicone balloon for removing thrombi in the venous system.

The company also provides carotid shunts that temporarily shunt the blood to the brain during the removal of plaque from the carotid artery in a carotid endarterectomy surgery; and radiopaque tape, a medical-grade tape applied to the skin that enables interventionists to cross-refer between the inside and the outside of a patient's body, and allows them to locate tributaries or lesions beneath the skin.In addition, it offers valvulotomes, which cut or disrupt valves in the saphenous vein to function as an artery to carry blood past diseased arteries to the lower leg or the foot; and vascular grafts to bypass or replace diseased arteries.Further, the company provides vascular and cardiac patches, which are used for closure of vessels after surgical intervention; and closure systems to attach vessels to one another with titanium clips instead of sutures.

It markets its products through a direct sales force and distributors.The company was formerly known as Vascutech, Inc.and changed its name to LeMaitre Vascular, Inc.

in April 2001.LeMaitre Vascular, Inc.was incorporated in 1983 and is headquartered in Burlington, Massachusetts.

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1.b. Last Insights on LMAT

The recent 3-month performance of LeMaitre Vascular, Inc. was negatively impacted by a disappointing Q1 2025 earnings release, which missed the Zacks Consensus Estimate of $0.50 per share, coming in at $0.48 per share. This earnings miss, coupled with a lackluster Q1 2025 financial results, has raised concerns about the company's growth prospects.

1.c. Company Highlights

Last Price	84.53
Change Percentage	-1.37%
Open	86.12
Previous Close	85.7
Market Cap ( Millions)	1918
Volume	131124
Year High	105.55
Year Low	71.42
M A 50	86.9
M A 200	86.86

FCF Yield	3.45%
Dividend Yield	0.95%
ROE	14.96%
Debt / Equity	48.99%
Net Debt / EBIDTA	198.76%
Price To Book	5.05
Price Earnings Ratio	35.91
Price To FCF	28.96
Price To sales	7.96
EV / EBITDA	25.79

2. Strong Q3 Earnings with Revenue Growth and Margin Expansion

The company reported a robust Q3 2025 with organic sales growth of 12% and a better-than-expected gross margin. The revenue growth was driven by strong performances in Grafts, up 23%, and Shunts, up 18%. The adjusted gross margin expanded by 300 basis points year-over-year to 70.8%, driven by higher pricing, manufacturing efficiencies, and product mix. Earnings per share (EPS) came in at $0.62, beating estimates of $0.564. The company's cash and securities balance stood at $343.1 million, an increase of $23.6 million, and generated $28.8 million in cash from operations.

Publication Date: Nov -24

                                    📋 Highlights
                                    Organic Sales Growth::
                                                12% Q3 growth driven by 23% Grafts and 18% Shunts sales, with 10% from pricing and 2% from unit volume.
Artegraft Sales Surge::
                                                International launch exceeded expectations, with Q3 sales of $1.4M (up 33% YoY) and Q4 guidance of $2M.
Adjusted Gross Margin::
                                                70.8% in Q3, a 300-basis-point increase YoY, driven by pricing, manufacturing efficiencies, and product mix.
Cash Position::
                                                $343.1M cash and securities at Q3 end, up $23.6M, with $28.8M cash from operations and $4.5M dividends paid.

                                

Segment Performance and Product Highlights

The company's international Artegraft launch continues to exceed expectations, with Q3 sales of $1.4 million, and is expected to reach $2 million in Q4. Artegraft grew 33% worldwide in Q3. The RestoreFlow product received German approval in October, and distribution is anticipated to begin in Q2 2026. As George LeMaitre mentioned, "we were conservative in our expectations, but the channel has been stronger than we thought, and we're getting great reports from doctors."

Guidance and Outlook

The company guided full-year revenue growth of 13% and adjusted operating income of $63.7 million, up 22%. The expected adjusted fully diluted EPS is $2.37, representing a 22% increase over 2024. However, the company expects lower organic growth in the future due to the catheter recall, export struggles in Europe and APAC, and the strengthening of the dollar.

Valuation and Metrics

With a P/E Ratio of 37.36 and an EV/EBITDA of 26.75, the company's valuation appears to be pricing in significant growth expectations. The ROE of 14.96% and ROIC of 8.45% indicate a relatively healthy profitability profile. Analysts estimate next year's revenue growth at 9.1%, which may be challenging to achieve given the headwinds mentioned by the company.

3. NewsRoom

4 Stocks With High Coverage Ratios Offer Safer Bets Going Into 2026

Dec -01

Source: zacks.com

LeMaitre to Participate in Upcoming Investor Conferences

Nov -12

Source: globenewswire.com

LeMaitre Vascular, Inc. (LMAT) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

LeMaitre Vascular (LMAT) Q3 Earnings Surpass Estimates

Nov -07

Source: zacks.com

LeMaitre Q3 2025 Financial Results

Nov -06

Source: globenewswire.com

Teacher Retirement System of Texas Cuts Stock Position in LeMaitre Vascular, Inc. $LMAT

Nov -04

Source: defenseworld.net

LeMaitre Vascular (LMAT) Expected to Announce Quarterly Earnings on Thursday

Oct -30

Source: defenseworld.net

Allspring Global Investments Holdings LLC Sells 10,167 Shares of LeMaitre Vascular, Inc. $LMAT

Oct -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.00%)

6. Segments

Medical Devices and Human Tissue Cryopreservation

Expected Growth: 8%

LeMaitre Vascular's 8% growth in Medical Devices and Human Tissue Cryopreservation is driven by increasing demand for vascular surgeries, advancements in cryopreservation technology, and expanding applications in regenerative medicine. Additionally, growing awareness of tissue banking and increasing adoption of minimally invasive procedures contribute to the segment's growth.

7. Detailed Products

XenoSure

A biologically active, sterilized, and decellularized arterial graft used for vascular reconstruction and bypass procedures.

PROCOL

A vascular graft used for peripheral bypass procedures, featuring a collagen-impregnated Dacron graft.

AlboGraft

A decellularized, non-synthetic vascular graft used for vascular reconstruction and bypass procedures.

Xenograft

A sterilized, decellularized, and non-synthetic vascular graft used for vascular reconstruction and bypass procedures.

Valvulotome

A surgical instrument used to excise and remove diseased or damaged heart valves.

LeMaitre aortic punch

A surgical instrument used to create a circular hole in the aorta during cardiac surgeries.

8. LeMaitre Vascular, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for LeMaitre Vascular, Inc. is medium due to the presence of alternative medical devices and procedures that can replace the company's products.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of LeMaitre Vascular, Inc.'s products and the lack of price sensitivity among healthcare providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers for raw materials and components, but the company's dependence on a few key suppliers for critical components.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the medical device industry, including regulatory hurdles and the need for significant investments in research and development.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established competitors in the medical device industry, leading to a highly competitive market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	6.02%
Debt Cost	3.95%
Equity Weight	93.98%
Equity Cost	8.35%
WACC	8.09%
Leverage	6.41%

11. Quality Control: LeMaitre Vascular, Inc. passed 6 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Utah Medical Products

A-Score: 5.4/10

Value: 4.7

Growth: 3.0

Quality: 8.4

Yield: 4.0

Momentum: 3.5

Volatility: 9.0

1-Year Total Return ->

Pro-Dex

A-Score: 5.2/10

Value: 6.7

Growth: 6.0

Quality: 7.6

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

1-Year Total Return ->

LeMaitre Vascular

A-Score: 4.8/10

Value: 1.2

Growth: 7.4

Quality: 7.0

Yield: 2.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

Warby Parker

A-Score: 4.5/10

Value: 3.3

Growth: 7.4

Quality: 4.1

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

Daxor

A-Score: 4.4/10

Value: 3.5

Growth: 6.7

Quality: 8.6

Yield: 0.0

Momentum: 4.5

Volatility: 3.3

1-Year Total Return ->

Nephros

A-Score: 4.4/10

Value: 1.4

Growth: 6.3

Quality: 7.7

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

12.84%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.09%

LeMaitre Vascular, Inc. - US5255582018

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on LMAT

1.c. Company Highlights

Expensive

Better Quality

Less Volatile

Earnings Beats

Revenues Beats

Strong Momentum

Revenues Miss

Higher Growth

Earnings Miss

2. Strong Q3 Earnings with Revenue Growth and Margin Expansion

Segment Performance and Product Highlights

Guidance and Outlook

Valuation and Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.00%)

6. Segments

Medical Devices and Human Tissue Cryopreservation

Expected Growth: 8%

7. Detailed Products

XenoSure

PROCOL

AlboGraft

Xenograft

Valvulotome

LeMaitre aortic punch

8. LeMaitre Vascular, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: LeMaitre Vascular, Inc. passed 6 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

84.53$

Current Price

84.53$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA