Utah Medical’s Valuation Premium Meets Revenue and Cost Pressures
Zacks cites Utah Medical’s cash position and acquisition alongside falling revenue, higher costs and a valuation above the industry average.
Key takeaways
- Zacks put Utah Medical’s EV-to-sales multiple at 4.05 times, above the industry average of 2.68 times.
- Revenue fell 12.3% in the first half of 2026 to $17.3 million.
- Femcare acquired Orion Medical Supplies in August 2026; the business is expected to add about $6 million in annual sales.
Utah Medical Products trades at a valuation premium to its industry, even as falling revenue and rising costs weigh on results, according to a Zacks analysis. Zacks put the company’s trailing 12-month enterprise value-to-sales multiple at 4.05 times, versus an industry average of 2.68 times.
The analysis said UTMD shares gained 16.7% over the past year, while the industry fell 30.1%. Utah Medical also trades at a higher multiple than Evolus, at 1.97 times sales, and Canopy Growth, at 1.41 times, Zacks said.
A potential growth driver is Femcare Ltd.’s acquisition of Orion Medical Supplies in August 2026. The acquired business is expected to contribute about $6 million in annual sales, according to the article.
Utah Medical had $87.5 million in cash and investments as of June 30, 2026, and no debt. But first-half revenue fell 12.3% to $17.3 million, while operating income dropped 17.9% to $5.2 million. Management projected a 10% to 13% revenue decline for 2026.
Zacks said the company’s balance sheet, margins, acquisition and product development support its longer-term prospects, but near-term pressures and the premium valuation warrant caution. Its analysis said the fundamentals may justify holding for the long term, while those considering adding shares may want to wait for a better entry point.
This article was produced with the help of AI technology. Source: Yahoo Finance
