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Research

Nightingale Health: Possible breakthrough moves further away

By Antti LuiroHead of Nordic ER Development, Analyst
Nightingale Health
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Nightingale’s H2 figures were weak throughout. The targets for the new fiscal year were also more conservative than our expectations and suggested that the potential for stronger growth is further down the road than we assumed. Therefore, we lowered our estimates considerably. In the short term, the high risks associated with the company's growth and valuation levels have realized and our views have been dramatically wrong. We still see preconditions for the company to achieve a significant commercial breakthrough with its technology in the future, but in the light of current information we do not expect any clear signs of this appearing in the next few years. We believe that the combination of slower growth and a highly cash-flow-negative development phase offers little critical short-term supporting points for valuation, especially in the current weakened capital market.

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Nightingale Health operates in the medical technology sector. The company specializes in the development of medical technology products. The product portfolio is broad and includes platforms and services within blood analysis that are used for disease prevention purposes. In addition to the main business, service and related ancillary services are also offered. The business is operated globally with the largest presence in Europe.

Read more on company page

Key Estimate Figures30.09.2022

202223e24e
Revenue2.22.94.8
growth-%6.0 %30.5 %66.8 %
EBIT (adj.)-11.1-12.9-11.7
EBIT-% (adj.)-501.8 %-447.9 %-243.3 %
EPS (adj.)-0.20-0.22-0.20
Dividend0.000.000.00
Dividend %
P/E (adj.)neg.neg.neg.
EV/EBITDA3.9neg.neg.

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