IRMD

IRadimed is a textbook high-quality niche monopoly: per its 10-K it is "the only known provider of non-magnetic IV infusion pump systems" safe for MRI, paired with the 3880 vitals monitor that operates in fields up to 30,000 gauss. The financials reflect that moat — FY2025 revenue $83.8M (+14.4%), net income $22.5M (+16.9%), and a five-year march from $41.8M/$9.3M in 2021 to today shows remarkably consistent, profitable compounding. Margins are pristine (76.7% gross, 31.2% operating, 26.8% net), ROE is 23.8%, and the balance sheet is fortress-like: $51.2M cash, only $14.2M total liabilities, and liabilities/equity of just 0.15x. The MD&A's cumulative-unit disclosure is the tell on durability — installed pump channels grew 11,621→13,098 and monitors 2,679→3,397, a growing base that pulls through proprietary disposables and service revenue.

The problem is price, not the business. At $94.07 the stock trades at 53.8x FY diluted EPS of $1.75 and 14.3x sales — multiples that demand high-teens growth in perpetuity. Against ~15-17% earnings growth that is a PEG north of 3; the market has already capitalized years of flawless execution. Operating cash flow actually slipped slightly to $24.9M (-2.6%) even as earnings rose, and cash fell 2.1% as the company paid out $15.0M in dividends (~67% of net income) — a generous, growing payout but one that limits the cushion for any stumble at this valuation.