| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 218.24 | 257 |
| Intrinsic value (DCF) | 38.44 | -37 |
| Graham-Dodd Method | 31.21 | -49 |
| Graham Formula | n/a |
Utah Medical Products, Inc. (NASDAQ: UTMD) is a specialized medical device manufacturer focused on labor and delivery, neonatal care, women's health, and critical care solutions. Headquartered in Midvale, Utah, the company develops and distributes a diverse portfolio of FDA-cleared devices including fetal monitoring systems, vacuum-assisted delivery tools, umbilical vessel catheters, and electrosurgical instruments. UTMD serves hospitals, neonatal ICUs, women's health centers, and outpatient clinics through a hybrid distribution model combining direct sales with independent representatives. With a 45-year operating history, the company maintains a niche leadership position in obstetrical and gynecological devices while generating consistent profitability (35% net margins in recent filings). Its capital-light manufacturing approach and debt-free balance sheet ($82.9M cash) provide financial flexibility in the competitive $200B+ global medical technology sector.
Utah Medical Products presents a conservative investment profile with low volatility (β=0.3) and strong cash generation, trading at 12.6x trailing earnings. The company's $138.7M market cap reflects its niche specialization in obstetrics/gynecology devices, where it maintains pricing power through clinical differentiation (e.g., Filshie Clip contraception system). Key risks include customer concentration (top 10 distributors represent ~40% of sales) and limited R&D spending (4% of revenue) in an innovation-driven sector. The 3.5% dividend yield appears sustainable given zero debt and $82.9M cash reserves, though growth prospects remain constrained by the mature nature of its core markets. Regulatory changes in reproductive healthcare could impact ~30% of product lines.
UTMD competes through specialized product design rather than scale, focusing on cost-effective single-use devices for hospital labor/delivery units. Its vertically integrated manufacturing (80% of products made in Utah) enables faster customization than larger competitors, particularly for niche applications like neonatal respiratory hoods. The company's main advantage lies in clinical workflow integration - products like the DISPOSA-HOOD and DELTRAN blood pressure systems are designed for compatibility with major OEM equipment from GE Healthcare and Philips. However, UTMD lacks the capital to compete in high-growth segments like robotic surgery or digital health. Pricing pressure from GPOs remains an ongoing challenge, mitigated somewhat by the mission-critical nature of its delivery room products. With only 12% international sales, the company has untapped expansion potential in emerging markets where maternal health infrastructure is developing.