INFU

The headline 32.8x P/E overstates how expensive INFU is. This is a capital-light-in-practice rental/services model: FY2025 operating cash flow was $24.4M against just $560K of capex, so free cash flow (~$23.8M) is nearly 4x GAAP net income of $6.63M — because $13.3M of D&A on the pump fleet is a non-cash charge. Against a $205M market cap and ~$16M net debt (LT debt $19.6M less $3.19M cash), that's roughly 9x EV/FCF and an ~11-12% free-cash-flow yield, which is cheap for a business compounding revenue every year (from $102M in FY2021 to $143M in FY2025, +6.4% last year). P/S of 1.4x is undemanding.

The fundamentals are quietly strengthening. Gross margin is a healthy 56%, gross profit grew +14.1% (well ahead of the +6.4% top line), operating income jumped +73% to $11.9M, and net income tripled to $6.63M for an 11.6% ROE. The balance sheet is sound: liabilities/equity of 0.75x, long-term debt down 17.8% with zero current maturities, and $57.3M of equity. Management is returning cash — $9.87M of buybacks shrank the share count 3.8% — a rational use of FCF at these multiples. The moat is real for a micro-cap: the 10-K cites nearly 840 contracted third-party payer networks, seven US/Canada locations enabling same/next-day pump delivery, and long-standing oncology-practice relationships as barriers to entry.