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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