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LeMaitre Vascular Predictability Rank

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4.5 (5)

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Competitive Comparison

For the Medical Instruments & Supplies subindustry, LeMaitre Vascular's Predictability Rank, along with its competitors' market caps and Predictability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LeMaitre Vascular Predictability Rank Distribution

For the Medical Devices & Instruments industry and Healthcare sector, LeMaitre Vascular's Predictability Rank distribution charts can be found below:

* The bar in red indicates where LeMaitre Vascular's Predictability Rank falls into.

LeMaitre Vascular Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

PredictablesNon-PredictableAll stocks
Total Number of stocks57018332403
Total Lost Money61830891
Total Lost More Than 50%18412430
Total Lost More Than 90%48690
Average Gain260.6%100.0%138.1%
Median Gain150.0%13.0%39.0%
Maximum Gain2852.0%11483.0%11483.0%
Maximum Loss-100.0%-100.0%-100.0%
Annualized Average Gain12.7%6.7%8.4%
Annualized Median Gain8.9%1.1%3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank5-Star4.5-Star4-Star3.5-Star3-Star2.5-Star2-Star1-Star (non-predictable)Average among all
% Out of All 2403 Stocks 3.3% 2.9% 3.7% 3.3% 3.3% 3.7% 3.3% 76.3% 100%
% that are in Loss (10y) 3% 10% 8% 9% 11% 18% 16% 45% 37%
Average Gain (10y) 364.6% 330.9% 278.0% 235.1% 243.5% 227.8% 154.8% 100.0% 138.1%
Median Gain (10y) 238.5% 193.5% 171.0% 159.0% 132.5% 113.5% 87.0% 13.0% 39.0%
Maximum Gainer 2228.0% 2547.0% 2452.0% 2852.0% 2432.0% 1892.0% 1807.0% 11483.0% 11483.0%
Maximum Loser -82.0% -53.0% -67.0% -100.0% -83.0% -100.0% -78.0% -100.0% -100.0%
Annualized Average Gain 15.4% 14.6% 13.2% 12.0% 12.2% 11.7% 9.1% 6.7% 8.4%
Annualized Median Gain 12.1% 10.6% 9.8% 9.3% 8.2% 7.3% 6.0% 1.1% 3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Also read:

Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety

LeMaitre Vascular Predictability Rank Related Terms

Thank you for viewing the detailed overview of LeMaitre Vascular's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

LeMaitre Vascular Business Description

LeMaitre Vascular logo
Traded in Other Exchanges
63 Second Avenue, Burlington, MA, USA, 01803
LeMaitre Vascular Inc manufactures and distributes medical devices for the treatment of peripheral vascular disease. Its products are primarily used during open vascular surgery and address several anatomical areas, such as the carotid, lower extremities, upper extremities, and aorta. The firm's lower extremities product line contributes the largest proportion of revenue, followed by the carotid product line. LeMaitre's surgical devices include angioscopes, balloon catheters, carotid shunts, phlebectomy devices, vascular grafts, vascular patches, and vessel closure systems. LeMaitre generates the majority of its revenue in the United States. Sales in Germany also contribute a significant proportion of total revenue.
Lemaitre George W director, 10 percent owner, officer: Chairman and CEO 342 BUNKER HILL STREET, #2B CHARLESTOWN MA 02129
Roberts David B director, officer: President and Director 55 BRADFORD STREET NEEDHAM MA 02492
Pellegrino Joseph P Jr director, officer: Chief Financial Officer 68 BEACON STREET BOSTON MA 02108
Kamke Trent G officer: Senior V. P., Operations 61 WILLOWDEAN AVENUE WEST ROXBURY MA 02132
Roush John A director C/O GSI GROUP INC. 125 MIDDLESEX TURNPIKE BEDFORD MA 01730-1409
Ross Bridget A director C/O HENRY SCHEIN, INC. 135 DURYEA ROAD MELVILLE NY 11747
Jasinski Lawrence J director SOTEIRA INC. 14 TECH CIRCLE NATICK MA 01760
Thomas Michael H director P.O. BOX 2207 NOKOMIS FL 34274-2207
Gebauer Peter R officer: President, International OP AM WALDFELD 17 BAD SODEN 2M 65812
Wijas Michael T officer: VP of Sales, The Americas C/O LEMAITRE VASCULAR, INC. 63 SECOND AVENUE BURLINGTON MA 01803
Lemaitre Cornelia W director 8 SUNSET ROCK ROAD ANDOVER MA 01810
Linden Robert V officer: Senior VP Sales, The Americas 236 WOODEN BRIDGE ROAD HOLLAND PA 18966
Thorndike William N Jr director HOUSATONIC PARTNERS 800 BOYLSTON STREET, SUITE 2220 BOSTON MA 02199
Lemaitre George D director 8 SUNSET ROCK ROAD ANDOVER MA 01810

LeMaitre Vascular Headlines

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