Headwind? Assuming all this hospital hardware they sold is and stays in use, it will create an amazing tailwind for the company. All this hardware needs plenty of consumables to keep it going.
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Yes thats right and they have a slide that shows worst case scenario the consumables will grow at a 10% CAGR or best case scenario consumables grow at a 18% CAGR off the back of the new hardware sales.
Gee H2 profit is a shocker. Happy i sold a few weeks back when it had that random one day dead cat bounce up 5% Think i got out $23 - $23.50 or thereabouts
Was always going to be an interesting study as to how the market would react when FPH profits started declining .... heading in to the second year of declining ..... esp from an irrationally high share price
Has a lot of similarity to how A2 went ,,,,from super high share price and bonanza profits to something much lower when profits start going backwards
My mates at LSE always looking for raw material to use in behavioural finance courses - I've alerted them to this thread
It's all good W69. They reinforce their target to double revenue every 5 to 6 years. And they note their track record of doing this.
Also they note their strong history of increasing dividends.
Can't go wrong long term holding FPH!! Just might need to hodl (hold on for dear life) in the short term.
I agree, but its going to dent hardware sales for quite awhile I expect. Hard to believe there is going to be any recovery in profit 2023. It's a testament to the quality of the company that they were able to ramp up production like that. They are a formidable company with a bright future.
Just crunching some numbers:
NTA is now $2.69. Was always low for them (low equity), but it did grow since last year ($2.36).
RoE was 22.4%. Not a particular good number for FPH (down from 34.5% in 2020), but outstanding for any other company (though admittedly, their comparatively low equity helps ...);
Liabilities to assets stand now at 20.3% - down from 26.7% in 2020. Gives them plenty of headroom for investment and expansion.
Great company with a bright future coming down to earth after a huge Covid booster. Whether the current price is right is obviously something the markets need to decide ... and predicting Mr. Markets moods is an art nobody masters.
Discl: holding (still a rather small allocation) and having some money earmarked to buy more ... either when the price falls below my "must buy" line or when TA tells me that I better rush to avoid missing the train ...