Which small cap dental stocks are cavity-free and which ones are giving investors a bit of a toothache?
Health & Biotech
Health & Biotech
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Last time Stockhead had a dental stock check-up, only one had gained in 2019 and it was in the game of dental supplies rather than surgery.
And that stock, aesthetics and whitening product maker SDI (ASX:SDI), is still up by 30 per cent this year.
Since July it has reported solid full-year financials of $79.6m in sales and a $7m profit after tax. It also received a $3m research grant from the federal government.
While the company, born in 1972, is based in Australia, it is a global business with 90 per cent of its products exported.
SDI though is no longer the best and only performer in 2019. Pacific Smiles Group (ASX:PSQ) has surpassed it with a 44 per cent gain on even better financial results.
It generated $122.2m in revenue and booked an after tax profit of nearly $9m.
In the 2019 financial year, Pacific Smiles rolled out new dental centres, introduced automated sterilisation and brought in Afterpay as a payment option.
The company expects earnings growth of 6-12 per cent in the year ahead.
However, one stock that is flatlining in 2019 is Townsville headquartered 1300 Smiles (ASX:ONT). It too has had strong financials with a net profit of $7.8m.
And while in September it confirmed reports it was in discussions to acquire New Zealand dental firm, Maven Dental Group, nearly two months has passed and nothing has eventuated yet.
Smiles Inclusive’s (ASX:SIL) board fight may be over but its cash struggles aren’t.
Its full year loss was $31m and the September quarterly highlighted a net cash outflow of $902,000 from its operations.
It has raised $4.5m in a capital raising – the majority of which is to repay debt.
In its annual report the board admitted to shareholders that the year had been disappointing, but said it was completely focused on turning the business around.