Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Equity Analyst

M3 4Q Results: Earnings Miss and Further Slowdown Seems Unavoidable

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Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>M3’s share price has dropped 18% since its 2Q earnings release. Both revenue and OP fell below consensus and we were surprised by the drop in OPM for 2Q.</li>
<li>Medical Platform’s earnings have continued to decline as a result of spending cuts by pharmaceutical companies while other segments have failed to make up for the decline in Medical Platform.</li>
<li>M3 recently bought a majority stake in ELAN, whose consolidation will dilute m3’s margins. The company’s M&amp;A deals have not brought in any significant contribution to consolidated earnings.</li>
</ul>


M3’s share price has dropped 18% since its 2Q earnings release. Both revenue and OP fell below consensus and we were surprised by the drop in OPM for 2Q.
Medical Platform’s earnings have continued to decline as a result of spending cuts by pharmaceutical companies while other segments have failed to make up for the decline in Medical Platform.
M3 recently bought a majority stake in ELAN, whose consolidation will dilute m3’s margins. The company’s M&amp;A deals have not brought in any significant contribution to consolidated earnings.


M3: Earnings Trend Downward, ELAN Acquisition to Further Dilute Margins

M3 Inc

M3: Earnings Trend Downward, ELAN Acquisition to Further Dilute Margins