BSD Medical Corporation

Transcription

BSD Medical Corporation
Morningstar Equity Research
BSD Medical Corporation BSDM (ASE)
Last Close
Industry
Sector
1.84
Medical Devices
Healthcare
USD
Profile
Pricing data through 10 May 2012
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Contents
Company Profile
1
Company Data
2
Management & Ownership
3
Industry Focus
4
BSD Medical Corporation was originally incorporated under
the laws of the State of Utah on March 17, 1978. On July
3, 1986, the Company was reincorporated in the State of
Delaware The Company develops, manufactures, markets,
and services medical systems that deliver precision-focused
radio frequency (RF) or microwave energy into diseased sites
of the body, heating them to specified temperatures as
required by a medical therapies. Its business objectives are
to commercialize its products developed for the treatment
of cancer and to further expand systems to treat other
diseases and medical conditions. Its product line for cancer
therapy has been created to offer hospitals and clinics a
complete solution for thermal treatment of cancer as
provided through microwave/RF systems. Microwave
ablation system is to be used to ablate (remove or vaporize)
soft tissue with heat alone. Thermal ablation is used to
destroy local tumors using a short intense focus of heat on
a specific area, which is usually small, similar to surgical
removal of the tumor. Its product line includes systems that
have been strategically designed to offer a range of thermal
treatment systems for the treatment of cancer, including
both hyperthermia and ablation treatment systems. One of
its important contributions to the advancement of medical
therapy has been its pioneering work in developing a new
treatment for conditions associated with enlargement of
the prostate that afflicts most men as they age. Some
cancers, such as certain cancers of the liver, prostate,
kidney, bone metastases and lung cancer, are treated using
heat alone to deliver thermal ablation. BSD-500 is used to
treat cancers located near the surface of the body, or areas
that could be accessed using inserted antennae. The
BSD-500 comes in several versions, depending on the
customer requirements. The BSD-2000 is used to noninvasively treat deep cancers. This system also comes in
several versions, including models with three dimensional,
or 3D, steering of electromagnetic energy, as well as the
ability to be integrated with MRI. MTX-180 has been
developed to employ precision-guided microwave energy to
ablate soft tissue. The MTX-180 is a compact, mobile system
that includes a state-of-the-art computer, a microwave
generator, single-patient-use disposable applicators and a
proprietary thermistor-based temperature monitoring
system. Through research funded by the National Cancer
Institute in the United States and supportive efforts by other
domestic and international research institutions, the
Company enhanced the BSD-2000 to create the new
BSD-2000/3D. The BSD-2000/3D adds three-dimensional
steering of deep focused energy, as opposed to the twodimensional steering of energy available in the BSD-2000,
delivering even more precise heating of the tumor. Using
sophisticated microwave filtering and imaging software,
the BSD-2000/3D/MR allows an MRI system to be
interfaced with and operate simultaneously with a
BSD-2000/3D. Its target customers include clinics, hospitals
and institutions in which cancer is treated, located either in
the United States or international markets. The company
generally provides a 12-month warranty and record a
liability for the warranty following installation on all cancer
treatment systems and a 90-day limited warranty on
individual components. Competitors in the thermal ablation
market include RadioTherapeutics, a division of Boston
Scientific Corporation, Covidien Ltd., Angiodynamics, Inc.
and Microsulis Medical Ltd.
©2009 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information contained herein is not
represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without written permission. To
order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869.
Page 1 of 5
Morningstar
StockResearch
Data Sheet
Morningstar®Equity
Pricing data thru May 10, 2012
BSD Medical Corporation BSDM
Sales USD Mil Mkt Cap USD Mil Industry
Sector
3
55
Healthcare
Fair Value
Uncertainty
.
.
BSD Medical develops, produces, sells, and services systems
BSD Medical develops, produces, sells, and services systems
to treat cancer and other diseases using heat therapy that is
to treat cancer and other diseases using heat therapy that is
provided by focused radio frequency and microwave energy.
provided by focused radio frequency and microwave energy.
The company also uses these technologies for other
The company also uses these technologies for other
therapies. BSD develops specific microwave therapy
therapies. BSD develops specific microwave therapy
systems for TherMatrx, a company that treats prostate
systems for TherMatrx, a company that treats prostate
symptoms.
symptoms.
Morningstar Rating
—
Last Price
-
1.30
0.40
2.00
0.45
-
1.84
2.70
1.15
9.47
2.05
7.13
4.40
9.25
4.60
Rating updated as of May 10, 2012
Medical
Devices
Economic Moat
-
8.50
3.10
Fiscal year-end: August
4.77
1.17
TM
Stewardship Grade
-.
7.40
0.86
-
.
per share prices in USD
5.57
2.04
2.52
1.72
Annual Price High
Low
Recent Splits
Price Volatility
7.0
2188 West 2200 South
Employees: 41
2188Lake
WestCity,
2200
Salt
UTSouth
84119
Salt Lake
City,972-5555
UT 84119
Phone:
1 801
Phone: 1 801
972-5555Website: http://www.bsdmc.com
Website:
http://www.bsdmc.com
Monthly High/Low
Rel Strength to S&P 500
4.0
52 week High/Low
4.50 - 1.72
2.0
10 Year High/Low
9.47 - 0.40
1.0
1.0
Bear-Market Rank
5 (10=worst)
Trading Volume Million
0.5
Growth Rates Compound Annual
Grade: D
Revenue %
Operating Income %
Earnings/Share %
Dividends %
Book Value/Share %
Stock Total Return %
+/- Industry
+/- Market
2010
2011
YTD
Stock Performance
3.3
-10.3
6.7
.
111
-4.7
-8.2
-1.1
.
107
-27.1
11.4
6.7
.
80
-54.4
-77.8
-91.3
.
37
176.7
163.9
174.0
.
134
-48.7
-48.7
-44.7
.
70
-22.4
-30.1
-31.6
0.0
55
Total Return %
+/- Market
+/- Industry
Dividend Yield %
Market Cap USD Mil
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
TTM
Financials
3
59.6
-1
-26.6
3
52.1
-1
-22.2
2
31.3
-1
-79.1
2
34.7
-2
-113.4
3
40.7
-5
-175.9
3
44.2
-6
-225.4
5
59.5
-4
-82.7
4
45.8
-7
-184.5
2
5.1
-7
-473.4
3
43.8
-5
-176.0
3
44.7
-7
-219.9
2007
92.0
.
.
.
53.3
-52.6
-41.5
-53.2
-16.1
.
.
.
-9.0
-2.7
-13.6
-16.1
0.9
.
.
.
-10.2
-23.6
-21.1
-21.4
3.2
.
.
.
28.3
5.7
2.7
3.1
Current
5 Yr Avg
Ind
Mkt
0
-1
8
3
9
-3
-2
-11
-7
-5
-7
13.3
22.8
7.5
9.3
5.8
7.4
2.3
16.6
. 1050.7
0.00
.
18
0.07
-0.03
.
18
0.12
0.41
.
20
0.53
0.15
.
21
0.90
0.42
.
22
1.19
-0.16
.
21
1.06
-0.11
.
21
0.66
-0.52
.
22
0.47
-0.32
.
23
0.80
-0.18
.
29
0.66
-0.22
.
30
0.60
0
0
0
0
0
0
7
0
7
-3
0
-3
-7
0
-7
-5
0
-5
-1
-1
-2
-4
0
-4
-6
0
-6
-4
0
-4
-5
0
-5
44.7
-219.9
.
.
69.2
-38.0
-35.7
4.3
1.0
65.8 *
39.6
-228.4
-226.7
.
0.7
66.8
18.2
12.9
14.2
.
40.1
18.9
11.4
0.1
9.5
08-11 USD Mil
02-12 USD Mil
Cash
Inventories
Receivables
Current Assets
17
2
1
20
14
2
0
17
Fixed Assets
Intangibles
Total Assets
1
0
22
1
0
19
Payables
Short-Term Debt
Current Liabilities
Long-Term Debt
Total Liabilities
0
.
1
.
1
0
.
1
.
1
Total Equity
21
18
Valuation Analysis
Price/Earnings
Forward P/E
Price/Cash Flow
Price/Free Cash Flow
Dividend Yield %
Price/Book
Price/Sales
PEG Ratio
2009
124.7
121.7
118.2
.
105
10 Yr
Financial Position
Grade: B
2008
56.5
47.5
45.6
.
46
2004
5 Yr
Return on Equity %
-32.2
Return on Assets %
-30.8
Fixed Asset Turns
2.1
Inventory Turns
0.7
Revenue/Employee USD K 73.6
Gross Margin %
Operating Margin %
Net Margin %
Free Cash Flow/Rev %
R&D/Rev %
2006
184.3
157.9
159.5
.
29
2003
3 Yr
Profitability Analysis
Grade: F
2005
-36.3
-12.9
-28.3
.
9
2002
1 Yr
5 Yr Avg
Ind
Mkt
.
.
.
.
.
3.1
18.1
.
.
.
.
.
.
4.6
29.8
.
18.6
.
12.4
16.0
1.3
2.3
2.3
.
14.7
13.6
7.0
17.4
2.0
1.9
1.2
1.8
*3Yr Avg data is displayed in place of 5Yr Avg
Net Income USD Mil
Earnings Per Share USD
Dividends USD
Shares Mil
Book Value Per Share USD
Oper Cash Flow USD Mil
Cap Spending USD Mil
Free Cash Flow USD Mil
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
TTM
Profitability
0.5
0.9
0.4
1.25
1.9
-31.2
-67.6
-22.2
1.41
2.7
126.6
143.9
516.0
0.25
1.1
24.3
25.5
164.4
0.15
1.0
42.1
45.6
319.0
0.13
1.1
-12.7
-13.7
.
0.11
1.1
-10.6
-11.3
-47.5
0.22
1.1
-66.3
-70.9
.
0.21
1.1
-58.4
-62.0
.
0.12
1.1
-30.5
-31.9
.
0.18
1.0
-30.8
-32.2
.
0.14
1.1
Return on Assets %
Return on Equity %
Net Margin %
Asset Turnover
Financial Leverage
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
02-12
Financial Health
1
.
1
.
0
.
1
.
11
.
11
.
15
.
15
.
25
.
26
.
23
.
23
.
19
.
20
.
11
.
12
.
11
.
12
.
20
.
21
.
17
.
18
.
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
TTM
Valuation
47.0
.
3.1
7.7
.
.
.
10.5
11.9
.
6.0
.
39.2
4.3
6.9
16.1
.
49.0
5.7
.
22.0
.
37.9
4.4
.
.
.
29.9
4.8
.
.
.
15.8
5.5
.
.
.
13.4
3.6
.
.
.
68.0
5.8
.
.
.
21.9
3.6
.
.
.
18.1
3.1
.
Price/Earnings
P/E vs. Market
Price/Sales
Price/Book
Price/Cash Flow
Quarterly Results
Current
Revenue USD Mil
Gross Margin %
Oper Income USD Mil
Operating Margin %
Revenue USD Mil
Most Recent Period
Prior Year Period
Rev Growth %
Most Recent Period
Prior Year Period
Earnings Per Share USD
Most Recent Period
Prior Year Period
Working Capital USD Mil
Long-Term Debt USD Mil
Total Equity USD Mil
Debt/Equity
Industry Peers by Market Cap
May 11
Aug 11
Nov 11
Feb 12
1.7
0.1
0.4
0.4
0.7
0.5
0.3
0.4
May 11
Aug 11
Nov 11
Feb 12
.
-87.1
-4.7
-33.9
29.4
18.6
-38.6
-26.7
May 11
Aug 11
Nov 11
Feb 12
-0.03
-0.10
-0.07
-0.04
-0.06
-0.04
-0.07
-0.05
Mkt Cap USD Mil Rev USD Mil
BSD Medical Corporat
Nihon Kohden Corpora
GREEN HOSPITAL SUPPL
55
.
.
3
.
.
P/E
ROE%
.
.
.
-32.2
.
.
Major Fund Holders
% of shares
.
.
.
TTM data based on rolling quarterly data if available; otherwise most recent annual data shown.
© 2012 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported.
The information contained herein is not represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security.
Redistribution is prohibited without written permission. To order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869.
®
ß
Morningstar Equity Research
BSD Medical Corporation BSDM (ASE)
Last Close
Industry
Sector
1.84
Medical Devices
Healthcare
USD
Management & Ownership
Management Activity
Name
Position
DR. GERHARD W.
Director
SENNEWALD,PHD
DR. MICHAEL NOBEL,PHD Director
DR. DOUGLAS P. BOYD, Director
PHD
J. GORDON SHORT,M.D. Director
PAUL F. TURNER
Director
MR. STEVEN G. STEWART Director
MR. TIMOTHY C. MCQUAYDirector
HYRUM A. MEAD
Director
Shares Held
Report Date*
6,293,167
01 May 2012
InsiderActivity
-
300,486
143,669
01 May 2012
01 May 2012
-
118,067
98,151
53,431
47,970
44,200
20 Sep 2005
10 Jan 2011
01 May 2012
01 May 2012
31 Aug 2009
-
*Report date represents the date on which the owner's common shares held was audited.
Fund Ownership
Top Owners
DFA US Micro Cap I
Vanguard Extended Market Idx Inv
FCP OP MEDICAL BioHealth-Trds EUR H
Vanguard US Total Market Shares (AU) ETF
Fidelity Spartan Extended Mkt Index Inv
Morningstar
Rating
% of Shares
Held
% of Fund
Assets
Change
(k)
QQQQ
0.68
0.56
0.45
0.29
0.32
0.01
0.00
0.24
0.00
0.00
-5
1
0
6
0
29 Feb 2012
31 Dec 2011
31 Mar 2012
31 Dec 2011
31 Mar 2012
QQQ
QQQ
Q
Q
0.45
0.10
0.01
0.14
0.24
0.05
0.04
0.02
0
0
0
0
31 Mar 2012
31 Mar 2012
03 May 2012
04 May 2012
Morningstar
Rating
% of Shares
Held
% of Fund
Assets
Shares
Bought/
Sold (k)
QQQQ
QQQQQ
0.29
0.56
0.00
0.00
0.00
0.00
6
1
0
31 Dec 2011
31 Dec 2011
28 Feb 2011
QQQ
0.68
0.01
-5
29 Feb 2012
QQQ
QQQQ
QQQ
Portfolio Date
Concentrated Holders
FCP OP MEDICAL BioHealth-Trds EUR H
PHARMA/wHEALTH I (USD)
Wilshire Micro-Cap ETF
iShares Russell Microcap Index
Institutional Transactions
Top 5 Buyers
Vanguard US Total Market Shares (AU) ETF
Vanguard Extended Market Idx Inv
Scotia Nasdaq Index
Portfolio Date
Top 5 Sellers
DFA US Micro Cap I
©2009 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information contained herein is not
represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without written permission. To
order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869.
Page 3 of 5
Morningstar Equity Research
BSD Medical Corporation BSDM (ASE)
Last Close
Industry
Sector
1.84
Medical Devices
Healthcare
USD
Industry Focus: Medical Devices
Boston Scientific Falls Behind
02 December 2011
Debbie S. Wang
Senior Analyst
Its lagging
innovation has
implications for the
future.
Boston Scientific BSX appears to be in a fast-follower
position, now that it has fallen behind competitors in
developing pipeline technologies, and we believe its
formerly wide economic moat has narrowed. We think
Boston's new role as the potential third or ancillary market
entrant for technologies such as transcatheter heart valves,
MRI-safe cardiac rhythm management products, and
neuromodulation gives it a weaker competitive position.
While we expect the firm can exist comfortably as a fast
follower, this is qualitatively different from its previous role
as a pioneer. We think this will translate into less power to
command premiums for new technology.
Our moat ratings for the remaining cardiac device
companies-- Medtronic MDT , St. Jude STJ , and Edwards Lifesciences EW --are unchanged, as the field
is already highly consolidated, which should result in less
supplier switching. Most cardiac markets, including
pacemakers, implantable cardioverter defibrillators, and
heart valves, are divvied up among just three major players.
Considering that product recalls are a hazard for any cardiac
device maker, providers are reluctant to put all of their eggs
in one basket with a single supplier. We think this will leave
the door open for all three firms.
Boston Scientific's Trailing Position Has Implications for
the Future
Innovation is the life blood of this industry, so Boston's
laggard position behind Medtronic, St. Jude Medical, and
Edwards Lifesciences has implications going forward.
Boston has been plagued by operational issues in the wake
of its 2006 purchase of Guidant and struggled with the debt
load brought on after that acquisition. In the past, the firm
(and Guidant's cardiac rhythm management business)
consistently had been one of the first to introduce new
features and innovative technologies. However, in the past
couple of years, Boston has begun lagging behind,
especially on the development of pipeline technologies that
we expect will drive growth during the next three to ten
years. At this point, we anticipate Boston will trail its rivals
by two to three years when it comes to MRI-safe CRM
devices, transcatheter heart valves, ablation for atrial
fibrillation, and neuromodulation.
This industry is highly consolidated and dominated by just
a few large companies, so being the third to market isn't
necessarily the end of the world. St. Jude had historically
held that fast-follower position behind Medtronic and
Guidant in the CRM market, but still enjoyed a narrow moat
and consistent economic profits. The high barriers to entry-which include a substantial base of intellectual property,
innovative engineering, and an extensive network of
relationships with practitioners--are difficult for startups to
create from scratch. Moreover, by the time a small startup
actually commercializes its product, one of the large device
makers is likely to swoop in and purchase the smaller fish.
Thus, it is not surprising that the cardiac rhythm
management market has been a stable oligopoly for at least
the past decade.
Boston's new status as a fast follower is somewhat
different from its past position as a pioneer. We anticipate
the firm will not be able to garner premiums on new products
that are quite as attractive as in the past, when it was the
first or second to market. Conversely, we also do not expect
to see any new entrants gain significant strength to displace
Boston from its third-place position.
We remain wary that outgoing CEO Ray Elliott was able to
completely ferret out all of the firm's operational issues.
Considering Boston's recent record, we would not be
surprised to see another glitch come up under new president
(and expected future CEO) Michael Mahoney. We had a
great deal of confidence in Elliott to put things right, based
on his record at Zimmer and his many years in the medical
device industry. So if he couldn't fully turn things around at
Boston, we're not particularly confident that Mahoney will
be able to do much better.
Finally, we note that Boston's return on invested capital
suffered greatly following the high price it paid for Guidant.
Now that the implantable cardioverter defibrillator market
is mired in low-single-digit growth, thanks to larger clinical
©2009 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information contained herein is not
represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without written permission. To
order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869.
Page 4 of 5
Morningstar Equity Research
BSD Medical Corporation BSDM (ASE)
Last Close
Industry
Sector
1.84
Medical Devices
Healthcare
USD
Industry Focus: Medical Devices
issues that are unlikely to be resolved soon, the expected
return on the Guidant investment will leave ROICs
depressed for the foreseeable future. This clearly sets
Boston apart from its peer group, which generally earns
attractive ROICs in excess of weighted average cost of
capital.
We are leaving Medtronic's and St. Jude's wide moats and
Edwards' narrow moat unchanged. These companies
continue to pioneer emerging technologies, even as the
clinical bar has been raised. Moreover, providers are
reluctant to limit themselves to a single device maker,
because product recalls are a fact of life for any device
manufacturer. However, we are increasing the margin of
safety required for Medtronic and St. Jude (by raising our
uncertainty rating to medium from low), as the prospect of
Medicare reimbursement cuts looms over the entire
industry.
©2009 Morningstar. All Rights Reserved. Unless otherwise provided in a separate agreement, you may use this report only in the country in which its original distributor is based. Data as originally reported. The information contained herein is not
represented or warranted to be accurate, correct, complete, or timely. This report is for information purposes only, and should not be considered a solicitation to buy or sell any security. Redistribution is prohibited without written permission. To
order reprints, call +1 312-696-6100. To license the research, call +1 312-696-6869.
Page 5 of 5