TFSA Picks: 1 Healthcare Value Stock with Significant Growth Opportunities

The extent of value-added services provided by Viemed Healthcare Inc. (TSX:VMD)(NASDAQ:VMD) should add significant intrinsic company value over the long-term.

| More on:
healthcare pharma

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Viemed Healthcare (TSX:VMD)(NASDAQ:VMD) is a participating medicare durable medical equipment supplier that provides post-acute respiratory care services in the United States. The company operates through two wholly-owned subsidiaries, Sleep Management and Home Sleep.

Viemed’s primary objective is to solidify the company’s position as the largest independent leader in home therapy of patients suffering from respiratory diseases that require a high level of service. The company’s programs are designed specifically for payors to gain the ability to treat patients in the home for less total cost and with a superior quality of care.

Organic growth model

The services of the company’s subsidiaries include respiratory disease management, neuromuscular care, in-home sleep testing and sleep apnea treatment, oxygen therapy, and respiratory equipment rentals. Viemed adopts an organic growth model whereby expansion is effectuated through existing service areas as well as in new regions through a cost-efficient launch that reduces location expenses.

Viemed employs more respiratory therapists than any other independent provider in the United States. By focusing overhead costs to personnel that service the patient rather than physical location costs, Viemed anticipates efficiently scaling the company’s business in regions that are currently not being effectively serviced.

Significant growth opportunities

The continued trend of servicing patients in the home rather than in hospitals is aligned with Viemed’s vision, and management anticipates that it will continue to offer growth opportunities for Viemed. Viemed expects to continue to be a solution to the rising health costs in the United States by offering more cost-effective home based solutions while increasing the quality of life for patients fighting serious respiratory diseases.

Revenue from ventilator products represented approximately 87% and 92% of total revenues. Viemed’s management believes that the company’s subsidiaries are poised for organic growth moving forward. The company focuses on disease management and improving the quality of life for respiratory patients through clinical excellence, education and technology.

Variety of service offerings

Viemed’s service offerings are based on effective home treatment with respiratory care practitioners providing therapy and counseling to patients at homes using cutting-edge technology. The company’s home sleep division focuses on providing in-home sleep testing for sleep apnea sufferers.

Further, Viemed is one of the largest independent non-invasive ventilator provider in the United States with a service coverage area of 24 states in the United States and prospects to grow. The company’s respiratory disease management service aims at improving quality of life and reducing hospital re-admissions by using proven methodology and leading technologies such as counseling on proper diet, activity level, smoking cessation and inhaler use.

Value-added services

Viemed sources hardware from vendors and pairs them with industry leading respiratory therapy. The company’s neuromuscular care service is focused on helping neuromuscular patients to breathe more comfortably while living an active, healthier life, and uses respiratory therapy treatments which can lessen the effort required to breathe.

Also, the company’s oxygen therapy service provides the patient with extra oxygen, which is sometimes used to manage certain chronic health problems. Overall, the extent of value-added services provided by Viemed should add significant intrinsic company value over the long term.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Viemed Healthcare Inc.

More on Investing

edit Sale sign, value, discount

3 Cheap TSX Stocks to Buy Before July

Canadian markets have bounced back, but investors can still snag undervalued TSX stocks like Finning International Inc. (TSX:FTT).

Read more »


Is Blackline (TSX:BLN) Stock Worth Your Attention in 2022?

Blackline Safety Corp. (TSX:BLN) stock has struggled in the year-over-year period, but there are some positives to glean from its…

Read more »

stock analysis

Why I’m Buying the Dip in Andlauer (TSX:AND) Stock

Andlauer Healthcare Group Inc. (TSX:AND) stock offered exposure to two promising spaces while offering solid value in late June.

Read more »

clock time
Tech Stocks

Now’s the Time to Load Up the TFSA With These 2 Top TSX Stocks

Here are two top TSX stocks that long-term growth investors may not want to give up on, especially at these…

Read more »

data analyze research
Energy Stocks

TSX Stock Picks With Huge Potential

If you want a TSX stock that's bound for even more strong growth, these three are top picks by analysts.

Read more »

growing plant shoots on stacked coins

Market Plunge: Double Your Cash With 3 Bargain Stocks

These TSX stocks have corrected over 50%, despite their strong fundamentals, and could easily double from here.

Read more »

oil and natural gas
Energy Stocks

Can Cenovus Stock Outperform in H2 2022?

Is now the time for investors in Cenovus (TSX:CVE)(NYSE:CVE) stock to buy more, or wait out this volatility right now?

Read more »

cup of cappuccino with a sad face

The Biggest Regret a TSX Investor Can Have

Hydro One (TSX:H) is a top bond proxy to own if you're a TSX investor who's worried about a pick-up…

Read more »