It may be not a fantastic acquisition but not bad either. looking into the numbers... - cash conversion rate is very high - rev/ebitda multiple is not low compared to previous acquisitions but not high as well in market standards - true that few big players in optometry but there are still huge pockets/gaps to grow - overall high rev and earning will give muscle power and help to be more opportunistic - expansion to audiology would be good fit with existing setup. can't see anything bad. - still open for small acquisitions in podiatry and physio areas. don't think any diversion yet.
Definitely existing podiatry and physio businesses are better compared to optometry but overall this acquisition will make HLA stronger financially which is very important too.
HLA is one of the undervalued quality stocks in my personal opinion. Fantastic board and management.
I am personally into it since IPO and not losing patience at all. Topped up few times recently. Looking forward to next few years.
Not a recommendation.
HLA Price at posting:
$1.03 Sentiment: Buy Disclosure: Held
