BICO (BICO SS) Sweden
Healthcare
Share price tanks on disappointing 3Q21 figures - has now fallen 40% since Paul Nagy’s report in early Oct’21. Paul highlighted increased investment in working capital, particularly receivables, that has led to lower CFFO while adjusted EBTIDA has continued to increase. In addition, FCF has been consistently negative. Paul also noted that the pace of acquisitions has increased materially since 2019, raising concerns over integration risk, especially since the market value of BICO implied substantial revenue growth expectations from these acquisitions.
Edition: 124
- 26 November, 2021