Profit upgrade - is it going to go even higher now - PE currently 60 plus
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Profit upgrade - is it going to go even higher now - PE currently 60 plus
Yes definitely imo, would any holder sell their FPH shares at the moment? Would have to be crazy or desperate.
With the increasing challenges around hospitals being great incubators for things like COVID-19 & superbug antibiotic resistant viruses, some of the FPH medical devices which get patients out of hospitals faster & able to recuperate in their own homes are a godsend to doctors, financially stretched hospital boards and anxious patients.
These are not non essential discretionary consumer products, they help provide vital solutions to a rapidly increasing problem.
If the ship was sinking & someone could sell you a seat on a lifeboat, you're not going to haggle too much over the price are you. :)
Wow, look at that SP go. I was thinking $30 by end of the year but looks like much sooner.
It's possible to understand at the most superficial glance someone might draw a comparison, but please just think about it.
During the Dotcom bubble, at a time when home ownership of computers in the US was just taking off, many Dotcom companies SP rose over 1000% some even over 2000%, on wild speculation of future profits at the same time they were making huge losses. Every new Dotcom company launch was greeted with an extravagant Dotcom party with investors hardly knowing or even caring what the company did.
But how much revenue did FPH made last year ?
Over $1 Billion, with products sold in over 120 countries around the world & NPAT of $209 Million.
60% of that came from FPH products in the Hospital care range, for respiratory care, acute care, surgical care.
These aren't airy fairy non essential discretionary consumer products, they are life saving, & medical expenditure is the fastest increasing cost for govt's around the world.
Why are hospitals DHB's etc everywhere struggling with their budgets ? Because when it comes to a choice between medical care & saving lives, or saving money, medical care wins hands down every time.
FPH's Homecare products also save lives & also have high (revenue driving) consumables i.e. parts like filters, lines etc which need regular replacing.
Projected NPAT for this year before (Coronavirus) COVID-19 broke was projected at $240 - $250 million.
With many of their products setting the Gold standard in Respiratory care & a significant R&D focus on developing new products the future looks increasingly stronger & is reflected in the ever increasing SP.