The Market Maven - Week 49
Medpace, Hirequest, Sky Harbour Group
Medpace 🇺🇸 (NASDAQ:MEDP, EV: £3.0B, Last Close: £20.30)
Medpace is a contract research organization (CRO) that manages clinical trials for pharmaceutical companies. The CRO market has multiple tailwinds going for it, and Medpace is a leader in the market having organically built out its offerings unlike many of their competitors. The company currently trades for a valuation in-line with the market despite being a well above average business.
A writeup from LVS Advisory (Link).
A writeup from Compounding Quality (Link).
A Substack writeup (Link).
Hirequest 🇺🇸 (NASDAQ:HQI, EV: $233M, Last Close: $15.21)
HireQuest is a staffing company with a unique and well aligned franchise model. They save franchisees money by handling AR, workers comp, and other backend functions at scale. Franchisees can then focus on matching temporary employees with employers. The company has a highly attractive acquisition strategy, rolling up mom and pops and converting them to their franchise model. Founder and CEO Rick Hermans has a really impressive track record and owns the majority of the company. Shares currently trade for 9x FCF.
A writeup from Mindset Capital (Link).
A VIC writeup (Link).
A podcast on Hirequest from Chit Chat Stocks (Link).
Sky Harbour Group 🇺🇸 (NYSE:SKYH, *EV: $949M, Last Close: $11.22)
Sky Harbour is an early mover in providing luxury private jet hangars which come with a favorable supply/demand dynamic. The companies first 14 announced projects should do between $1.10 and $1.20 per share in NOI by 2028, and would require something like an additional $65M in equity and $260M in debt (see the VIC writeup linked below). Two major risks here are equity raises at depressed valuations, and new entrants into the market.
*This includes the hypothetical $260M of required future debt issuance.
A writeup from Kairos Research (Link).
A VIC writeup with a great message board (Link).
A podcast with CFO Francisco Gonzalez (Link).
Check Out: Undersea Surgeons
Disclosure: This newsletter does not provide investment advice. Information presented is for informational purposes only and should not be considered a recommendation to buy or sell securities. The author may or may not own the securities discussed.