Is Haemonetics (HAE) Undervalued As Q1 Earnings And Outlook Lift Optimism?
Why Haemonetics Stock Is Back in Focus After Q1 Earnings
Haemonetics (HAE) has attracted fresh attention after first quarter revenue of US$339.38 million, higher earnings per share from continuing operations, and a raised fiscal 2027 revenue outlook, along with stronger cash generation and debt repayment.
See our latest analysis for Haemonetics.
Haemonetics' recent Q1 update, stronger cash generation and fresh product evidence around its VASCADE MVP XL system have come alongside a 90 day share price return of 68.15% and a 1 year total shareholder return of 62.70%. Together, these factors point to strong positive momentum around the stock.
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Bulls see Haemonetics’ Q1 update, higher 2027 outlook and VASCADE MVP XL data as validation of the rally. Bears point to a 68% 90 day surge and mixed net income trends. Which case does the valuation now lean toward?
Most Popular Narrative: 1.1% Overvalued
The most followed Haemonetics narrative sees fair value at $86.90, almost in line with the last close at $87.84, which frames a very tight valuation gap.
Rapid innovation and increased adoption of advanced plasma collection systems (NexSys with Persona and Express Plus), as well as new software contracts securing ~80% market share, are driving share gains and supporting double-digit organic growth ex-CSL in the plasma segment. These trends are expected to boost both revenue and net margins as upgrades and center conversions accelerate through FY26 and into FY27.
Want to see what sits underneath that growth story? The narrative leans heavily on revenue expansion, margin uplift and a richer earnings base by the late 2020s. The interplay between those forecasts and the implied future P/E is what really matters here.
Result: Fair Value of $86.90 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Haemonetics' reliance on three U.S.-focused products and ongoing competition in vascular closure could still upset the current fair value narrative.
Find out about the key risks to this Haemonetics narrative.
Another View: Haemonetics Looks Cheap on Cash Flows
The popular narrative has Haemonetics trading about 1.1% above a fair value of $86.90. Yet Simply Wall St's DCF model points in the opposite direction. On this view the stock trades around $87.84, which is about 50% below an estimated future cash flow value of $176.41. That is a big gap to weigh.
For readers who want to see how the cash flow view is built step by step, it is worth looking at the full SWS DCF model behind this estimate. Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Haemonetics for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
With both upbeat and cautious signals in play around Haemonetics, it makes sense to move quickly and test the numbers yourself. To weigh those competing signals in one place, take a closer look at the 2 key rewards and 3 important warning signs
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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