Affidea is benefiting from the sector’s long-term structural tailwinds and its solid fundamentals and positioning:
- Large and growing market (e.g., ageing population and increasing focus on preventive medicine)
- Resilience through economic cycles, given the critical nature of the services and market undersupply
- Barriers to entry from: (i) sticky long-term contracts, (ii) high capital requirements, (iii) complex regulations and license requirements and (iv) radiologist shortages
In addition, the fragmented European market offers M&A opportunities, both in countries where Affidea is present and beyond.
Affidea is well positioned to win:
- Diversification across geographies, payors (e.g., public and private), services and regulations
- Over-indexed to attractive complex modalities with higher growth
- Strong financial profile, with ongoing organic growth and solid M&A track record
- Margin improvement potential (e.g., best practice sharing, higher medical productivity by reducing doctors’ administrative burden)
- Attractive additional opportunities from artificial intelligence and teleradiology
The company’s current focus lies on top-line growth while improving margins. Key drivers for potential EBIT margin improvement are (i) more favorable product and geographic mix and (ii) cost efficiency/overhead optimization, mainly through economies of scale.
Adidas has a solid balance sheet and strong cash conversion.
Affidea has earned a reputation for clinical excellence, with a focus on quality care, as:
- Europe’s most awarded diagnostic imaging provider
- A partner of choice for doctors, patients and payors
- A developer of new technologies with OEMs (“original equipment manufacturers”)
Over the past year, the Board and management have been strengthened with additional high-caliber appointments.