The market is a bit extended and is hesitating today after a fairly strong week into record territory for the year for the NASDAQ and DOW. However, even in the midst of this pullback, quality stocks stand out.
Interestingly, the stock that looks good to me today is ANOTHER medical records/information type stock. Fits in well with our other posts on Quality Systems and Merge Technologies. IDX Systems Corporation (IDXC) "...operates two business segments: healthcare information systems and solutions, which includes software, hardware and related services, and medical transcription services" according to money.cnn.com.
After being upgraded by W.R. Hambrecht today, IDXC is currently trading at $26.20 up $3.46 or 15.22% on the day. I do not own any shares of this stock.
On July 22, 2003, IDXC reported their 2003 second quarter results: revenues increased to $98.3 million compared to $85.1 million in the second quarter of 2002. Net income from continuing operations was $5.4 million or $.18/share compared to $3.2 million or $.11/share last year.
Morningstar.com shows a fairly nice growth in revenue although not as steady as some we have covered. In 1998, IDXC had $350 million in revenue which through 200 was fairly unchanged when it came in at $354 million. In 2001, IDXC jumped to $391 million, and $460 million in revenue in 2002. Trailing twelve months revenue figure is $473 million.
Free cash flow has improved recently from ($46) million in 2000, ($30) million in 2001, ($1) million in 2002 and into the black with $8 million in the trailing twelve months.
Assets and liabilities are very healthy with $56 million in cash and $125.5 million in other current assets vs $97.0 million in current liabilities and NO long-term liabilities reported per Morningstar.
Per Yahoo, the Market Cap is a moderate $768.58 million. The trailing p/e is a little pricey at 52.88 while PEG ratio isn't too bad at 1.51. Price/sales also reasonable at 1.55. 29.38 million shares are reported outstanding and of those 17.60 million of them float. Only 681,000 shares are reported out short as of 8/8/03...representing 3.87% of the float or 5.922 days of trading. No dividend is paid.
This is an interesting stock although a bit pricey value-wise with a fairly high p/e...the growth is pretty compelling. Might fit in well with a triad of investments the MRGE, QSII and now IDXC.
Thanks for stopping by. I hope these posts are helpful and if you have any questions or comments, please feel free to leave them here or email me at bobsadviceforstocks@lycos.com
Bob