Stocks

Cynosure, Inc. (CYNO)

This Month’s Stock:

Cynosure, Inc. | (CYNO) | http://www.cynosure.com/

In a Nutshell:

The Company develops and markets aesthetic treatment systems to perform non-invasive procedures to remove hair, treat vascular lesions, rejuvenate skin through the treatment of shallow vascular lesions and temporarily reduce the appearance of cellulite. They offer six main products: two focus on liposuction and cellulite reduction, the other four on wrinkle reduction and skin pigmentation. Essentially, this company will be capitalizing on the aging of the babyboomer generation and on the growing obesity “epidemic”.

The Numbers:

Revenue increased by 39.3% from $56.3M in 2005 to $78.4 in 2006. Analysts estimate another 52% increase for 2007 for a total of $120M

Annual earnings per share increased from $0.37 in 2005 to $0.63 in 2006. Estimates are at $1.33 for 2007.

Enterprise Value: $407M
Free Cash Flow: -$2M
Estimated Growth (5 years): 29.0%
Return on Equity: 11.2%

P/E Ratio: 45.7. It’s much higher than the industry average of 33.6

Insider Ownership: 8%. It’s not as high as we would like to be, but it’s not too low either.

Revenue per employee: $534,800 is significantly higher than the industry average of $376,000.

Income Statement | Balance Sheet | Cash Flow

Interesting Facts:

- Shares are under heavy accumulation by financial institutions.
- Over the past two years, quarterly earnings reports were consistently higher than analysts’ consensus forecast by 12.5% to 27%.

Noteworthy Competitor:

Syneron Medical Ltd. (ELOS)

Rate this stock (CYNO) and add your comments:

(2 votes, average: 4.5 out of 5)

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The author of this post does not own shares of either CYNO or ELOS.