LEMAITRE VASCULAR, INC. (LMAT): what the price assumes

In the published model solve dated 2026-Q2, anchored at $80.45, LEMAITRE VASCULAR, INC. (LMAT) is priced for +18.6% growth. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-06-29.

Generated: 2026-08-30 · Source: https://boothcheck.com/report/LMAT

Headline

What The Price Assumes (Inversion)

The assumption today's price embeds, recovered by inverting the valuation.

The operating-margin figure is value-band context at year 9: derived from the framework's value band, a separate calculation — not part of the priced-in solve.

Solve inputs: computed at a 8.5% cost of capital with 4% terminal growth over a 5-year stage.

How unusual the bet is: within-range (limited comparison data)

Valuation X-Ray

The price is justified by relative-multiple and growth-DCF; asset-based/earnings-power land below the price.

How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.

Families that justify the price: Relative, Growth Families that call it expensive: Asset, Earnings

The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 8.4%); the inversion above states its own rate.

Per-Model Detail (n=18)

Economic-Unit Decomposition (Sum Of The Parts)

Only one reportable economic unit is present in the current topology source. Consolidated operating lenses remain available, but there is no multi-unit decomposition.

No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.

Solvency

Bullet Takeaways

• LeMaitre is a niche vascular-device maker that wins by selling unglamorous products the giants ignore: grafts, valvulotomes, and carotid shunts each posted record sales in Q1 2026, and gross margin reached 72.7%, up 350 basis points on pricing and manufacturing gains.
• The price is the main risk, not the business: only the forward-growth lens reaches today's quote, so an investor is paying for roughly 23% annual operating-income growth to persist against a company that grew organic revenue 10% last quarter.
• What moves the stock next is whether the growth rate holds: management guides to 12% sales growth and 26% EPS growth for 2026, and the Artegraft biologic graft, up 36% worldwide, is the swing factor.

Bull Case

Start with where the price sits against the methods, because for LeMaitre the spread tells a specific story. The asset-value lens, the earnings-power lens, and the peer-multiple lens all land well below today's price; only the forward-growth lens reaches it. That pattern is not a red flag by itself. It is the signature of a durable compounder, a business whose value lives in years of future growth that the static, backward-looking methods structurally cannot capture. The static methods value what LeMaitre has earned; the price values what it is likely to keep earning. The bull case is that the company has earned the right to be read on the forward lens, and the recent results support it.

The evidence is in the margins and the breadth of growth. In Q1 2026 LeMaitre grew sales 11%, with 10% organic, and lifted gross margin 350 basis points to 72.7% on higher pricing and manufacturing efficiency. Operating income rose 41% to $17.8 million, an operating margin of 27%, which is the operating leverage of a business with real pricing power. The growth was not concentrated in one lucky product: grafts, valvulotomes, and carotid shunts each posted record sales, and the Artegraft biologic graft grew 36% worldwide. A company expanding gross margin while growing every major product line and every geography is demonstrating exactly the durability the price pays for.

The structural advantage is the niche itself. LeMaitre sells low-volume, high-margin devices for open vascular surgery, products too small for Medtronic, Boston Scientific, or Abbott to prioritize but essential to the surgeons who use them. That leaves LeMaitre with pricing power and a direct sales force that the giants do not bother to contest line by line, and it lets the company roll up small vascular product lines through acquisition and fold them into an established sales channel. The balance sheet supports the strategy: the company carries net cash, runs interest coverage around 14 times, and funds its bolt-on acquisitions internally. A small company with a clean balance sheet, 70%-plus gross margins, and a defensible niche is the kind of business that compounds quietly for a long time, which is what the forward lens is pricing.

Bear Case

The competitive backdrop is the place to start, because LeMaitre is a small company in a market the giants own. Medtronic, Boston Scientific, and Abbott hold the dominant share of peripheral-vascular devices, and W. L. Gore, B. Braun, and Edwards Lifesciences round out a field of multinationals with R&D budgets and sales forces many times LeMaitre's size. LeMaitre's defense is that it operates in the seams these companies ignore, niche open-surgical products too small to move their needles. That works until it doesn't. The same niches that are too small for a giant to chase today become attractive once they grow, and a single decision by Medtronic or Boston Scientific to enter a product line, or to bundle a competing device into a hospital contract, can compress LeMaitre's pricing power in a category overnight. The moat is real but narrow, and it depends on the giants continuing to look the other way.

That competitive fragility matters because of what the price assumes. At today's quote only the forward-growth lens reaches the price; the asset, earnings-power, and peer-multiple lenses all sit well below it. In plain terms, the price requires LeMaitre to compound operating income at roughly 23% a year for years, against a company that grew organic revenue 10% last quarter and guides to 12% sales growth for the year. There is a gap between the growth the price pays for and the growth the business is delivering, and that gap is the bet. If growth settles into the low double digits rather than the low twenties, the forward lens that currently reaches the price stops reaching it, and a stock supported by only one family of method has nothing else underneath to catch it. The price also sits high relative to where this company's own valuation has typically run, which is the engine flagging that the multiple is stretched even for a quality compounder.

The execution risks compound the valuation risk. LeMaitre grows partly by acquiring small vascular product lines and integrating them, a strategy that works until an acquisition disappoints or a deal is overpaid, and the share count has been drifting modestly higher rather than lower, so growth is not being amplified by buybacks. Roughly a quarter of the gross-margin strength came from pricing, and pricing-led margin gains are harder to repeat than volume-led ones. None of this threatens the balance sheet; LeMaitre carries net cash and ample coverage. The bear case is simpler than a solvency scare: a small-cap priced for two decades of elite compounding is one competitive incursion or one growth disappointment away from losing the only valuation lens that currently supports it.

Valuation

LeMaitre is priced as a durable compounder, and the methods make that explicit. The asset-value lens, the earnings-power lens, and the peer-multiple lens all land well below today's price; only the forward-growth lens reaches it. That is the defining pattern. When just the growth family supports the price, the premium is a bet on durability that the static methods structurally cannot frame, not an error in those methods. They are valuing the company's trailing economics correctly; the market is paying for the years of compounding ahead.

The concrete version of that bet is the growth the price requires. Today's price embeds roughly 23% annual operating-income growth sustained over a long horizon, against a company that earns a 27% operating margin today and grew organic revenue 10% last quarter. The margin is not the question; LeMaitre's profitability is already excellent and improving, with gross margin at 72.7%. The question is the growth rate and how long it lasts. Management guides to 12% sales growth and 26% EPS growth for 2026, so the EPS line can run faster than revenue through margin expansion and operating leverage, but the revenue trajectory still has to bridge a meaningful distance to the pace the price assumes. The peer-multiple lens reads the stock as rich against its medical-device cohort, which fits: this is a high-quality business trading at a high-quality price.

Solvency asks nothing of this name. LeMaitre carries net cash, runs interest coverage around 14 times, and funds its acquisitions internally, so the downside is not a balance-sheet event. The share count drifts modestly higher rather than lower, so unlike many compounders the per-share math is not being helped by buybacks; growth has to come from the business. The valuation leaves a clean question: the company is excellent, and the price already knows it. What an investor underwrites at today's quote is that the compounding the forward lens prices in actually arrives, year after year, in a niche the giants could choose to contest.

Catalysts

The clearest catalyst for LeMaitre is the growth rate itself, because the entire valuation rests on it. In Q1 2026 the company grew sales 11% with 10% organic, expanded gross margin 350 basis points to 72.7%, and grew operating income 41%. Management guides to 12% sales growth and 26% EPS growth for the full year, so each quarterly print is a test of whether the business is tracking toward that guidance or decelerating, and the stock's premium multiple makes it sensitive to even small misses against the growth bar.

The product-level swing factor is Artegraft, the biologic graft that grew 36% worldwide in Q1 2026. Its continued expansion, alongside the record sales in grafts, valvulotomes, and carotid shunts, is what would validate the durable-growth thesis; a stall in the fastest-growing product would pressure the forward lens that supports the price. Geographic expansion is the other lever, with EMEA and APAC posting record sales in the quarter.

The structural watch item is the acquisition pipeline. LeMaitre grows partly by buying small vascular product lines and folding them into its sales channel, so the cadence, price, and integration of those deals is a standing catalyst; a well-priced bolt-on extends the growth runway, while an overpaid or poorly integrated one would dent the compounding story the market is paying for.

Peer Cohorts (Per Segment, With Filing Citations)

Medical devices (consolidated) (reported)

• AORT (ARTIVION, INC.)
• FY2025 10-K: …and awards were excluded from the calculation of diluted weighted-average common shares outstanding as these would be antidilutive to the net loss. 16. Segment and Geographic Information We have two reportable segments organized according to our products and services: Medical Devices and Preservation Services. The…
• FY2025 10-K: …December 31, 2025 we did not have a significant backlog of orders related to our medical devices. The limited supply of certain types or sizes of preserved tissue can result in a backlog of orders for these tissues. The amount of backlog fluctuates based on the tissues available for shipment and the surgical needs of…
• ATRC (AtriCure, Inc.)
• FY2025 10-K: …designed primarily for the surgical ablation of cardiac tissue, the exclusion of the left atrial appendage, and to block pain by temporarily ablating peripheral nerves. These devices are developed and marketed to a broad base of medical centers globally. Management considers all such sales to be part of the single…
• FY2025 10-K: …distribution throughout the member states of the EU and other countries that comply with or mirror EU MDR. In 2024, we received 510(k) clearance for our most recent configuration of the Isolator Synergy platform, the EnCapture™ clamp, which has enhanced geometry and features to facilitate engagement with the intended…
• PEN (Penumbra, Inc)
• FY2025 10-K: …or regulatory changes to reimbursement policies could potentially limit the amount which healthcare providers may be willing to pay for medical devices. Competition The medical device industry is intensely competitive, subject to rapid change and significantly affected by new product introductions and other market…
• FY2025 10-K: …and as such the significant segment expenses regularly provided to the CODM are those presented on the consolidated statements of operations. These significant segment expense include cost of revenue, research and development, and sales, general and administrative expenses. Other segment items that are presented on…
• MMSI (MERIT MEDICAL SYSTEMS INC)
• FY2025 10-K: …("Teleflex"), Cook Medical Incorporated ("Cook Medical"), Medtronic plc ("Medtronic"), Boston Scientific Corporation ("Boston Scientific"), and Becton, Dickinson and Company ("BD"). Our primary competitors in our cardiac intervention market are BD, Teleflex, Medtronic, Abbott Laboratories, Terumo Corporation, Edwards…
• FY2025 10-K: …and pulmonology devices which assist in the palliative treatment of expanding esophageal, tracheobronchial and biliary strictures caused by malignant tumors. Within those two operating segments, we offer products focused in five product categories: peripheral intervention, cardiac intervention, custom procedural…
• LIVN (LivaNova PLC)
• FY2025 10-K: …cardiopulmonary products, including HLMs, oxygenators, autotransfusion systems, perfusion tubing systems, cannulae, and other related accessories, and provides services related to certain of these products. In particular, the Cardiopulmonary segment includes the Essenz Perfusion System, the Company's next-generation…
• FY2025 10-K: …manner, maintain high-quality manufacturing processes, and successfully market and sell these products. LivaNova's primary medical device competitors in the Cardiopulmonary and Neuromodulation product groups are Terumo Medical Corporation, Maquet Medical Systems, Medtronic plc, Haemonetics Corporation, Spectrum…
• TFX (TELEFLEX INCORPORATED)
• FY2025 10-K: …is permitted. We are currently evaluating this guidance to determine its impact on our consolidated financial statements. In September 2025, the FASB issued new guidance designed to clarify and modernize the accounting for costs related to internal-use software. The updated guidance is intended to provide enhanced…
• FY2025 10-K: …film-cast tubing, diagnostic and interventional catheters, balloons and balloon catheters, film-insulated fine wire, coated mandrel wire, conductors, sheath/dilator introducers, specialized sutures and performance fibers, bioabsorbable sutures, yarns and resins. GOVERNMENT REGULATION We are subject to comprehensive…
• TMDX (TransMedics Group, Inc.)
• FY2025 10-K: …of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Revenue…
• FY2025 10-K: …All clinical investigations involving medical devices must comply with the relevant requirements of the MDR, EU member state requirements, and current good clinical practices defined in harmonized standards and guidance documents. Clinical investigations for medical devices cannot proceed without a positive opinion…
• INSP (Inspire Medical Systems, Inc.)
• FY2025 10-K: "), European Union ("EU"), Medical Devices Regulation, and Japan Pharmaceuticals and Medical Devices Agency-approved neurostimulation technology of its kind that provides a safe and effective treatment for patients with moderate to severe OSA. Inspire therapy received premarket approval from the FDA in 2014 and has…
• FY2025 10-K: …consolidated balance sheets. We had $ 0.1 million of unrecognized loss and $ 0.2 of unrecognized gain in our accumulated other comprehensive income balance as of December 31, 2025 and 2024, respectively. Investments Our investments are classified as available-for-sale and consisted of the following: December 31, 2025…

Methodology Note

• Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
• Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
• Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
• Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
• Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.

Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.