After having a chance to dig into PTQ, i like what i see from this small cap. It is very similar to VMD, in that it provides and specializes in in home ventilation therapies in the U.S.
While its counter part has done quite well during the Pandemic, PTQ has trailed. It appears as though demand for PTQs services have either remained steady or seen an uptick in demand as the company is well positioned to take some of the pressure off hospitals. It has most likely trailed due to its lesser know status and small capitalization.
Not only is it well positioned to sustained operations as an essential service, it is well positioned for growth. The industry is highly fragmented and it has been making several acquisitions. The company has a strong balance sheet which can further spur its growth through acquisition strategy. It aims to achieve $200 million in revenue and 25% EBITDA in three to five years.
Likewise the market for durable medical equipment (DME) is expected to grow by a CAGR of 5.4% through 2028 given the aging population. That alone will drive consistent organic growth.
PTQ also looks attractively valued. As a microcap it won't show up on our screener, but has an EV to Revnue ratio of only 1.2 - this seems ridiculous cheap. The company is expected to return to profitability next year and is trading at 24 times forward earnings. Not bad - but well below the industry average of 57 times forward earnings.
Analysts have a $2.30 per share price target on the stock which implies more than a double from today's price. All five rate it a buy, and the street low is $2.00 per share. I would take these estimates with caution however, as the company has missed earnings estimates each quarter last year.
Overall it seems like an interesting little company. If it succeeds in delivering on its targets, I can see significant growth potential.