I guess slow and steady wins the race. FPH is the Tortoise and ATM is the Hare one might say.
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A lot of naysayers?
Disclaimer:Originally purchased for $4/share,doubled up when share price dropped to $3.Interesting to note share price relative to ATM.What are their relative risk profiles?
Things to like with FPH
"constant currency revenue growth of 20% from new applications consumables"
"Gross margin increased by 56 basis points to 66.9%, or a 58 basis points increase in constant currency, compared to the previous year, primarily due to favourable product mix"
"Last year, we invested $100 million (equal to 9% of our revenue) into R&D and we have a full pipeline of new products in development."
"reduction of debt to below the target gearing range"
"capital expenditure for the 2020 financial year to be approximately NZ$150 million"
"At current exchange rates we expect full year operating revenue for the 2020 financial year to be approximately NZ$1.15 billion and net profit after tax to be approximately NZ$240 million to NZ$250 million. Recent changes introduced by the New Zealand Taxation (Research and Development Tax Credits) Act 2019, a significant reduction in patent litigation costs and forecast currency benefits have been factored into our earnings guidance for 2020"
"86% of the company’s revenue was generated from recurring items, such as consumables and accessories"
A very sound company now litigation is behind it.
"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Warren Buffett
Such slow growth! Only 4% to 12% annually depending on sector! Overall 8% in constant currency.Quote:
Overview of key results for the 2019 financial year
- 10% growth in net profit after tax to a record NZ$209.2 million.
- 8% increase in final dividend to 13.5 cps (2018: 12.5 cps).
- 9% growth in operating revenue to a record NZ$1.07 billion, 8% growth in constant currency.
- 12% growth in Hospital operating revenue, 11% growth in constant currency.
- Revenue growth of 20% in constant currency for consumables used in non-invasive ventilation, Optiflow nasal high flow therapy and surgical applications, accounting for 62% of Hospital consumables revenue.
- 6% growth in Homecare operating revenue, 4% growth in constant currency.
- Investment in R&D was 9% of revenue or NZ$100.4 million.
- 86% of the company’s revenue was generated from recurring items, such as consumables and accessories.
Sounds disastrous.
The company is doing too well ... should increase tax to prevent them from growing so fast ...
"Let's tax this!"
FPH SP has only gone up 280% over the last 5 years! Why would you consider putting your cash there?
Attachment 10557
A comparison with ATM may be unflattering, a comparison with just about any other share indicates returns have been pretty healthy.
I bought quite a lot up until 2012 then I have been selling chunks every year since then thinking the price was ridiculous. It is still one of my larger NZX holdings as the price just keeps growing. Having been wrong about selling every year over the last 6 years, I have decided not to sell any this year and just go with the flow.
I am not saying the company is bad quite the opposite. This company is magnificent, just not for this price. This particular share has a great record for capital gains. Will it continue, who knows for the short term....
If I were to sell my A2 milk for other investments FPH would not even be a consideration for me, as in 5 years time A2 will have higher dividends than FPH, maybe even sooner with growth far exceeding FPH.
Hey but its only my opinion and I have been proven wrong before.
I hear you, im not selling anymore either.Yeah go with( the sleep apnoea) FLOW, masks. Theres 29 million OSA people in the USA alone and growing(all those fatties).
Ive got the easier solution , holding ATM and FPH (and RMD) and looking at other similar companies atm.