As the computer and display-weighted technology businesses stabilize and the life care/health care businesses grow, Hoya's (OTCPK:HOCPY)
prospects have improved. Sell-side analysts still seem to have
relatively restrained revenue growth expectations, despite double-digit
growth in life care today, significant untapped potential in emerging
markets, and both a balance sheet and cash flow profile that could
support acquisitions to drive further growth.
Valuation is a
little more complicated. With the shares up almost 70% over the past
year (the Tokyo-listed shares, that is), the valuation is not quite so
compelling but I wouldn't say the shares are overvalued. Consistently
solid returns on capital would argue for an attractive discount rate,
and the sell-side may well be underestimating the company's ability to
grow both sales and profits.
Read more here:
Hoya's Prospects Brightened By Life Care
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