Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 stocks made the list for top value stocks in the Medical Equipment, Supplies & Distribution industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Latest Medical Equipment, Supplies & Distribution Stock News

Before choosing which top Medical Equipment, Supplies & Distribution stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

There has been an increase in demand for medical devices in recent years, largely driven by process innovations, emerging technology and an aging population. In 2021, the medical equipment industry should positively benefit from coronavirus test sales, new product sales and growing exposure in emerging markets. Companies selling coronavirus tests are expected to have strong sales for the year as people return to offices and schools. There has also been progress made by vaccine campaigns. Analysts expect to see a recovery in elective procedure volumes to pre-pandemic levels, which experienced particularly harsh headwinds in 2020 due to the pandemic. As a result, hospitals likely have a backlog of deferred procedures to work through. However, recovery for the industry could be relatively impacted by the financial pressures facing consumers, which may prevent people from seeking medical attention. In the long term, analysts see positive fundamental trends for medical device manufacturers, including global demand for cost-effective value-based health care, gaining demographics and rising research and development (R&D) investments, which have resulted in a steady stream of innovative products and revenue growth.

Why Focus on Undervalued Medical Equipment, Supplies & Distribution Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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4 Undervalued Medical Equipment, Supplies & Distribution Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Medical Equipment, Supplies & Distribution industry for Tuesday, January 02, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Medical Equipment, Supplies & Distribution industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

FUJIFILM Holdings Corp. (ADR)’s Value Grade

Value Grade:

FUJIFILM Holdings Corporation is a Japan-based holding company engaged in the business related to photography, medical care & printing & liquid crystal display materials and copying machines. The Company operates in three business segments. Imaging Solutions segment develops, manufactures and sells color films, digital cameras, color paper services for photographic prints, instant printing equipment and optical devices mainly for general consumers. Healthcare & Materials Solutions segment provides medical system equipment, cosmetics and supplements, pharmaceutical products, biopharmaceutical manufacturing development contract, regenerative medicine products, chemical products, graphic system equipment, inkjet equipment, display materials, recording media and electronic materials for commercial use. Document Solutions segment provides digital multi-functional peripherals, publishing systems, document management software and related solution services mainly for commercial use.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

FUJIFILM Holdings Corp. (ADR) has a Value Score of 69, which is considered to be undervalued.

When you look at FUJIFILM Holdings Corp. (ADR)’s price-to-sales ratio at 1.17 compared to the industry median at 3.16, this company has a lower price relative to revenue compared to its peers. This could make FUJIFILM Holdings Corp. (ADR)’s stock more attractive for value investors.

FUJIFILM Holdings Corp. (ADR)’s price-earnings ratio is 14.27 compared to the industry median at 40.04. This means it has a lower share price relative to earnings compared to its peers. This could make FUJIFILM Holdings Corp. (ADR) more attractive for value investors.

Now, let’s assess FUJIFILM Holdings Corp. (ADR)’s EV/EBITDA ratio, also known as enterprise multiple. At 8.3, when compared to the industry median of 14.7, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. FUJIFILM Holdings Corp. (ADR)’s shareholder yield is higher than its industry median ratio of (1.97%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. FUJIFILM Holdings Corp. (ADR)’s price-to-book ratio is lower than its industry median ratio of 2.67. This could make FUJIFILM Holdings Corp. (ADR) more attractive to investors looking for a new addition to their portfolio.

Inogen Inc’s Value Grade

Value Grade:

Inogen, Inc. is a medical technology company. The Company primarily develops, manufactures and markets portable oxygen concentrators (POCs) used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions. Its Inogen One systems concentrate the air around the patient to offer a single source of supplemental oxygen anytime, anywhere with a single battery and can be plugged into an outlet when at home, in a car, or in a public place with outlets available. The Inogen One systems reduces the patients reliance on stationary concentrators and scheduled deliveries of tanks with a finite supply of oxygen. Inogen Connect is a wireless connectivity platform for the Inogen One G4, Inogen One G5 and Rove 6 consisting of a front-end mobile application for use by long-term oxygen therapy users and a back-end database portal for use by homecare providers. The Company also offers Simeox, a technology-enabled airway clearance and mucus management device.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Inogen Inc has a Value Score of 94, which is considered to be undervalued.

Inogen Inc’s price-to-book ratio is higher than its peers. This could make Inogen Inc less attractive for value investors when compared to the industry median at 2.67.

You can read more about Inogen Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Premier Inc’s Value Grade

Value Grade:

Premier, Inc. is a healthcare improvement company uniting an alliance of approximately 4,350 United States hospitals and health systems and approximately 300,000 other providers and organizations. It operates through two segments: Supply Chain Services and Performance Services. The Supply Chain Services segment includes the Company’s group purchasing organizations (GPO), supply chain co-management, purchased services, and direct sourcing activities. The Performance Services segment consists of three sub-brands, which include PINC AI, the Company’s technology and services platform; Contigo Health, the Company’s direct-to-employer business; and Remitra, the Company’s digital invoicing and payables business. It delivers technology-enabled platform that offers critical supply chain services, clinical, financial, operational and value-based care software as a service (SaaS) as well as clinical and enterprise analytics licenses, consulting services, and third-party administrator services.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Premier Inc has a Value Score of 72, which is considered to be undervalued.

Premier Inc’s price-earnings ratio is 15.1 compared to the industry median at 40.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Premier Inc more attractive for value investors.

Premier Inc’s price-to-book ratio is higher than its peers. This could make Premier Inc less attractive for value investors when compared to the industry median at 2.67.

You can read more about Premier Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Sonendo Inc’s Value Grade

Value Grade:

Sonendo, Inc. is a commercial-stage medical technology company focused on saving teeth from tooth decay. The Company?s Product segment includes the sales of the GentleWave System console and related accessories and instruments. The GentleWave System, is a technology platform designed to treat tooth decay by cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure. In addition to its GentleWave Console and single-use procedure instruments (PIs), it also offers ancillary products, such as SoundSeal and its Sonendo-branded liquid solution of ethylenediaminetetraacetic acid (EDTA). SoundSeal is a material used during the GentleWave Procedure to build and create a sealing platform on the top of the crown, which facilitates an airtight seal between the PI and the tooth. The Company?s Software segment includes the sales of its software licenses for practice management software to enable an integrated digital office for endodontists.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Sonendo Inc has a Value Score of 62, which is considered to be undervalued.

Sonendo Inc’s price-to-book ratio is higher than its peers. This could make Sonendo Inc less attractive for value investors when compared to the industry median at 2.67.

You can read more about Sonendo Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Medical Equipment, Supplies & Distribution Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Medical Equipment, Supplies & Distribution stocks as well as other industrys.

Choosing Which of the 4 Best Medical Equipment, Supplies & Distribution Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• FUJIFILM Holdings Corp. (ADR) stock has a Value Grade of B.
• Inogen Inc stock has a Value Grade of A.
• Premier Inc stock has a Value Grade of B.
• Sonendo Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 4 undervalued stocks in the Medical Equipment, Supplies & Distribution industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Medical Equipment, Supplies & Distribution Stocks

Want to learn more about Medical Equipment, Supplies & Distribution stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 4 Undervalued Medical Equipment, Supplies & Distribution Stocks for Tuesday, January 02
• What You Need to Know About 10X Genomics Inc's Q3 Earnings
• What You Need to Know About Abbott Laboratories's Q3 Earnings
• What You Need to Know About Adapthealth Corp's Q3 Earnings

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