Q: Regarding LMN’s latest quarter, how do metrics compare with the early days of CSU and TOI around free cash flow and organic growth since these were the weak spots. Did CSU or TOI experience these same drops or weaknesses and how did they turn it around?
Thanks!
Thanks!
5i Research Answer:
Among the three CSU entities, LMN seems to have the weakest organic growth profile since going public. The early CSU (organic growth of around 3% in its early days) and TOI (organic growth in the range of mid to high single-digits) possess a healthier organic growth than LMN. That being said, LMN is very active on the acquisition front, as a result, its overall topline growth is still very solid. We think there is room for improvement in its organic growth rates, however, as long as LMN continues to deploy capital to grow revenue in an effective way, we think its long-term prospects are still promising.