Tuesday, August 19, 2014

Seeking Alpha: CareFusion's Strong Share Isn't Quite Enough

CareFusion (NYSE:CFN) is an interesting company in several respects. A leader in important markets like drug dispensing, infusion, and respiratory care, the company's margins and returns on capital are nevertheless not really "leader-like". What's more, there are some reasonable concerns as to whether the company's business is skewed too heavily towards capital equipment to facilitate good long-term growth. I come down basically in the middle - I like CareFusion's business well enough, but the weak ROICs and explicit intentions to be active in the M&A market lead me to demand a bigger discount to fair value before buying with my own money.

Read more here:
CareFusion's Strong Share Isn't Quite Enough

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