LeMaitre Vascular Trades Below 10-Year P/E Average, Offers 11–16% Return Potential
LeMaitre Vascular has a $1.9 billion market cap, trades at a forward P/E of 33.2 and achieved a 71% gross margin with 21% ROIC, funding 12–15% CAGR revenue and 19–21% EPS growth through its 30+ acquired vascular devices. It trades below its 10-year average forward P/E, implying 11–16% annual upside.
1. Thesis Overview
LeMaitre Vascular employs a disciplined roll-up strategy, operating over 30 subsidiaries that design and manufacture more than 100 specialized peripheral vascular devices. Founder-led management aligns incentives for long-term growth and has delivered over 1,500% returns since the 2006 IPO.
2. Financial Metrics
The company carries a $1.9 billion valuation, with trailing and forward P/Es of 37.8 and 33.2 respectively, alongside a 71% gross margin, 21% ROIC and strong free cash flow conversion. It has grown revenue at a 12–15% CAGR and EPS at a 19–21% CAGR historically.
3. Growth and Risks
Organic expansion is driven by an aging global population, minimally invasive surgery trends and emerging market adoption, while acquisitions fuel inorganic growth. Key risks include regulatory dependencies, integration of acquired assets and concentration in a single medical device niche.