Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 27 Jul 2026
IRMD· Healthcare
IRadimed
IRadimed Corporation's strong ROIC of 21.4% and durable business model are overshadowed by high valuation multiples and weak cash flow metrics.
Buffett fit
Partial fit
Owner
79
Durability
100
Management
74
Price
0
Score updated 26 Sept 2026 · analysis from 27 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned 100% of IRadimed, I'd focus on expanding the sales of their MRI-compatible devices, which have shown a 23.53% EPS CAGR over the past five years.
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The 10-year test looks promising as IRadimed has been profitable every year for the last five years.
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Management has shown discipline with a share count CAGR of just 0.75% over five years, indicating a conservative approach.
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The current owner's earnings yield of 1.44% is far below my threshold of 8-10%, indicating a lack of .
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 21.4% is well above the sector top-quintile cutoff of 10.7%.
- 2 of 32.4% ranks in the top quintile for the healthcare sector.
- 3Net margin of 27.4% also places it in the top quintile, indicating strong profitability.
- 4The company has maintained profitability with a 5-year EPS CAGR of 23.53%.
Concerns
5- 1 of 50.4 is significantly above the typical range, suggesting overvaluation.
- 2 yield of 1.44% indicates a lack of .
- 3 has declined YoY by 2.48%, raising concerns about cash generation.
- 4 of 76.84% is below the sector top-quintile cutoff of 77.9%.
Price history
$88.24+139.5%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
IRadimed develops MRI-compatible medical devices, generating $83.81M in revenue primarily from hospitals and imaging centers. The MRidium IV infusion pump system is a key product, contributing significantly to sales. The company has a high of 76.84%, indicating strong unit economics.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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