- AxoGen has upcoming clinical trial inflection points that must be considered in addition to sales momentum in the back end of this year.
- Cost-targeting & liquidity preservation measures taken by management this year have been realised at the level of operating efficiency.
- The company has reduced the cash conversion cycle, and less cash is tied up in working capital, enabling greater efforts to drive growth to the top.
- We feel shares are worth ~$20, whilst trading at 7.35x EV/gross profit and 5.3x 2021 sales makes the valuation attractive also.
- Here we cover the necessary updates to the moving parts in the investment debate, for the benefit of one's own investment reasoning.
For further details see:
AxoGen: Operating Efficiencies Come Through The P&L And Cash-flow Statement