Butterfly Networks (NAS:BFLY) — mrkt cap $520mm; Price $2.45; EV/EBITDA NA
MORE RESEARCH NEEDED. Butterfly Network is a healthcare technology company focused on developing and commercializing innovative ultrasound imaging solutions. These hardware and software products are designed to make high-quality medical imaging more accessible and user-friendly. With an annual R&D investment of approximately $40 million, Butterfly emphasizes semiconductor advancements within its devices and employs a unique go-to-market approach targeting universities, entry-level users, and non-traditional sectors like agriculture. Currently, 60% of medical schools incorporate Butterfly devices into their curriculum. Following recent restructuring efforts and revenue growth of 30% yoy the company is close to reaching profitability. While their products have received positive feedback, further analysis is needed to assess future unit economics and competitive dynamics.
Glaukos (NAS:GKOS) — mrkt cap $7.0B; Price $127.5; EV/EBITDA NA
PASS. Leader in MIGS (Micro invasive glaucoma surgery) with an attractive patent portfolio (iStent/iDose). Has steadily grown revenues, driven by iStent technology targeting glaucoma, making it a play on the aging population. However, they continue to burn around $150 million annually despite strong growth. The stock experienced a 65% run-up this year, but concerns remain regarding the long-term growth of the MIGS market. As a reimbursement-driven field, MIGS faces challenges such as modest efficacy, limited standalone use (often done in conjunction with cataract surgery), and hurdles in surgeon adoption, which may cap future expansion. Current P/S is too rich at 19x.
Marcus Corp (NYSE:MCS) — mrkt cap $676mm; Price $21.5; EV/EBITDA 11.2
PASS. The Marcus Corporation operates movie theaters and hotels, primarily in smaller urban areas. Its two main segments are Marcus Theatres, with nearly 1,000 screens, and Marcus Hotels & Resorts, which includes owned and managed hotel properties. Theaters’ dependence on strong blockbusters hasn’t fully recovered, and the domestic box office remains ~26% below 2019 levels, with fewer wide-release films returning post-pandemic. If filmmakers were structurally recommitting to theatrical releases we could gain conviction that attendance levels will hold steady. However, distribution options have increased and the industry is likely to be in flux for quite some time. We are passing.