Heska Corp ($HSKA) Cautious Buy or Hold to $68 Confident Investor Rating: Fair

 

Company name Heska Corp
Stock ticker HSKA
Live stock price [stckqut]HSKA[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Poor
EPS growth Good
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $108.68
Target stock price (averages with growth) $57.96
Target stock price (averages with no growth) $57.96
Target stock price (manual assumptions) $7.65

 

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/hska

Heska Corporation, incorporated on March 27, 1997, sells veterinary diagnostic and specialty products. The Company operates through two segments: Core Companion Animal Health (CCA) and Other Vaccines, Pharmaceuticals and Products (OVP). The CCA segment includes, primarily for canine and feline use, blood testing instruments and supplies, digital imaging products, software and services, local and cloud-based data services, allergy testing and immunotherapy, and single use offerings, such as in-clinic diagnostic tests and heartworm preventive products. Its OVP segment includes private label vaccine and pharmaceutical production, primarily for cattle but also for other species, including equine, porcine, avian, feline and canine. All OVP products are sold by third parties under third-party labels. The Company focuses on supporting veterinarians in the canine and feline healthcare space.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Heska Corp as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns. I have decided to remove Heska from my Watch List as there are better companies out there for me to invest in.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Heska Corp calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $70.35
  • Growth: 0.2
  • Current EPS (TTM): $0.55
  • P/E: 9
  • Future EPS Calc: $1.36
  • Future Stock Price Calc: $12.31
  • Target stock price: $7.64

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I hope that this makes you a Confident Investor.

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