Imperfect vision is a common problem around the world. It's the basis for large businesses at Essilor (NASDAQOTH: ESLOY ) , Hoya, and Luxottica (NYSE: LUX ) , as well as contact-lens manufacturers like Johnson & Johnson (NYSE: JNJ ) , Novartis, Cooper (NYSE: COO ) , and Valeant (NYSE: VRX )
. Not only is providing vision care products a profitable business in
its own right, which often supports double-digit returns on capital, it
is a business where customers typically have to buy the product over and
over again throughout their life. Add in above-average growth prospects
from emerging markets and it is not too difficult to see why these
businesses generally carry robust valuations.
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Is There Opportunity in the Eye-Care Sector?
Showing posts with label Cooper. Show all posts
Showing posts with label Cooper. Show all posts
Monday, April 7, 2014
Tuesday, March 18, 2014
Seeking Alpha: Hoya's Prospects Brightened By Life Care
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
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
Wednesday, March 12, 2014
The Motley Fool: Can Valeant Continue This Growth?
Canada's Valeant Pharmaceuticals (NYSE: VRX )
is a good example of what can be done when a company chooses to go its
own way and zig while others zag. In an industry that had becoming
increasingly skittish about mergers and acquisitions as a growth driver,
Valeant has done about 60 deals in the last six years. In an industry
that is increasingly spinning off divisions and focusing on "core
operations, Valeant management is willing to go wherever opportunity
takes them – prescription drugs, devices, OTC, and branded generics.
The potential merits of Valeant's approach certainly have not gone unnoticed, as the shares have nearly doubled over the past year. Valeant's uncommonly aggressive use of leverage does add some risk to the story, but the company has used its balance sheet to build very sizable franchises in dermatology, eye care, and aesthetics, and the opportunity to launch a "merger of equals" and leverage better operating and tax efficiency could propel the shares further.
Continue here to the full article at The Motley Fool:
Can Valeant Continue This Growth?
The potential merits of Valeant's approach certainly have not gone unnoticed, as the shares have nearly doubled over the past year. Valeant's uncommonly aggressive use of leverage does add some risk to the story, but the company has used its balance sheet to build very sizable franchises in dermatology, eye care, and aesthetics, and the opportunity to launch a "merger of equals" and leverage better operating and tax efficiency could propel the shares further.
Continue here to the full article at The Motley Fool:
Can Valeant Continue This Growth?
Thursday, August 29, 2013
Seeking Alpha: Utah Medical Has Appealing Quality, But Needs Growth
I love sifting through micro-caps in the hunt for under-followed
companies that have a lot to offer to patient investors. Unfortunately, I
think I'm late to the party with Utah Medical (UTMD)
as although this company is not followed by the sell-side, the shares
are up more than 50% over the past year and nearly 100% over the past
two years.
Utah Medical has a long history of excellent margins and free cash flow generation (better, even, that established giants like Bard (BCR) and Medtronic (MDT)), but not a lot in the way of revenue growth. While an acquisition a little while ago gave the company a great growth product, it looks like management needs to consider going back to the M&A well to take this business to another level.
Please read more here:
Utah Medical Has Appealing Quality, But Needs Growth
Utah Medical has a long history of excellent margins and free cash flow generation (better, even, that established giants like Bard (BCR) and Medtronic (MDT)), but not a lot in the way of revenue growth. While an acquisition a little while ago gave the company a great growth product, it looks like management needs to consider going back to the M&A well to take this business to another level.
Please read more here:
Utah Medical Has Appealing Quality, But Needs Growth
Friday, June 14, 2013
MassDevice: Is Valeant About To Make A Bold Bid For Bausch & Lomb?
Never let it be said that Valeant (NYSE: VRX) management is shy about
doing deals. With a roster of past deals including Biovail, Cephalon,
OraPharma, and Medicis, Valeant claims that better than 80% of its deals
have attained the 20% internal return target it uses to evaluate
potential transactions. If rumors out Friday prove true, Valeant is
about to bag its biggest target yet in what would be a particularly bold
move.
Multiple sources have reported (or repeated) rumors that Bausch + Lomb's private equity owners Warburg Pincus are near a deal to sell the eye care giant to Valeant in a deal worth close to $9 billion. That Bausch & Lomb is on the block is well known – Warburg Pincus hired Goldman Sachs back in December of 2012 to assist them, and reportedly approached companies including Sanofi (NYSE:SNY), GlaxoSmithKline (NYSE:GSK), and Abbott (NYSE:ABT) without getting any takers on the then-reported price tag of $10 billion. At that point, Warburg Pincus reportedly began considering an IPO of Bausch & Lomb to cash out of a company it originally acquired for $4.5 billion.
Please read more here:
http://www.massdevice.com/blogs/massdevice/valeant-about-make-bold-bid-bausch-lomb
Multiple sources have reported (or repeated) rumors that Bausch + Lomb's private equity owners Warburg Pincus are near a deal to sell the eye care giant to Valeant in a deal worth close to $9 billion. That Bausch & Lomb is on the block is well known – Warburg Pincus hired Goldman Sachs back in December of 2012 to assist them, and reportedly approached companies including Sanofi (NYSE:SNY), GlaxoSmithKline (NYSE:GSK), and Abbott (NYSE:ABT) without getting any takers on the then-reported price tag of $10 billion. At that point, Warburg Pincus reportedly began considering an IPO of Bausch & Lomb to cash out of a company it originally acquired for $4.5 billion.
Please read more here:
http://www.massdevice.com/blogs/massdevice/valeant-about-make-bold-bid-bausch-lomb
Friday, January 4, 2013
Seeking Alpha: Should Med Tech Head For The Dunes?
Playing the mix-and-match merger and acquisition game is a favorite
pastime of bored med-tech analysts everywhere, and it doesn't hurt that
the combination of below-average deal activity in 2012 and the advent of
the medical device excise tax in 2013 point to more deals on the way.
Today, though, I wonder whether or not a large med-tech company will
step up and acquire privately-held Dune Medical and its potentially revolutionary MarginProbe cancer detection system.
Please read the full article at Seeking Alpha here:
Should Med Tech Head For The Dunes?
Please read the full article at Seeking Alpha here:
Should Med Tech Head For The Dunes?
Monday, September 10, 2012
Seeking Alpha: Keep A Close Eye On Cooper's Improvements
Cooper Companies (COO)
(or, more formerly "The Cooper Companies") has done a fine job over the
past few years of making up for lost time. While the company had to
play catch up in the silicone hydrogel contact lens market, it is once
again growing its market share and expanding its margins. Although the
valuation today on these shares does not look all that compelling,
investors shouldn't ignore the potential for further multiple expansion
tied to ongoing share growth and margin expansion - two things that
med-tech investors prize greatly.
Please click here for more:
Keep A Close Eye On Cooper's Improvements
Please click here for more:
Keep A Close Eye On Cooper's Improvements
Monday, July 23, 2012
Seeking Alpha: Reasons For Relief At Eaton, But Tougher Times Still Ahead
Eaton (ETN)
isn't necessarily the best industrial company that investors can buy,
but it's a quality name that investors ought to reconsider during the
lulls in the cycle. With good long-term fundamentals in most (if not
all) of its target markets and reasonable leverage to emerging market
growth, Eaton should be a reliable "market growth-plus" story for the
foreseeable future.
Please click this link for more:
Reasons For Relief At Eaton, But Tougher Times Still Ahead
Please click this link for more:
Reasons For Relief At Eaton, But Tougher Times Still Ahead
Monday, January 30, 2012
Seeking Alpha: ABB-Thomas & Betts Deal Is A Good One
Swiss multinational industrial company ABB (ABB) has been teasing investors for a little while now. While management has done a laudable job of cutting costs, seemingly everyone has been waiting for announcements with a little more "oomph" -- specifically, deals that can goose the company's growth rate. After more than a few near-misses, ABB found a deal that should make investors happy, as Thomas & Betts (TNB) looks like the right company at the right price.
The Deal To Be
The boards of ABB and Thomas & Betts have agreed on a deal that (if approved by shareholders) will see ABB acquire the company for $3.9 billion in cash. That works out to $72 per share and a 24% premium to Friday's close. In paying over 10 times EBITDA, ABB is hardly fleecing Thomas & Betts shareholders, especially considering that this company has struggled to produce consistently good returns on capital. Nevertheless, there are some definite synergies that should reduce the effective cost to ABB, as well as the prospects of an eventual recovery in the construction markets that make up a sizable percentage of Thomas & Betts' business.
To read more, click here:
ABB-Thomas & Betts Deal Is A Good One
The Deal To Be
The boards of ABB and Thomas & Betts have agreed on a deal that (if approved by shareholders) will see ABB acquire the company for $3.9 billion in cash. That works out to $72 per share and a 24% premium to Friday's close. In paying over 10 times EBITDA, ABB is hardly fleecing Thomas & Betts shareholders, especially considering that this company has struggled to produce consistently good returns on capital. Nevertheless, there are some definite synergies that should reduce the effective cost to ABB, as well as the prospects of an eventual recovery in the construction markets that make up a sizable percentage of Thomas & Betts' business.
To read more, click here:
ABB-Thomas & Betts Deal Is A Good One
Thursday, December 29, 2011
Investopedia: Is Ingersoll-Rand's Bar Finally Low Enough?
For all the talk of restructurings, initiatives and goals, the reality is that companies generally stay more or less in their historical slots - good companies continue to be good companies and laggards continue to lag. That makes it difficult to have a lot of faith in the idea that Ingersoll-Rand (NYSE:IR) is underpriced and primed to be a solid stock over the long term. Although IR does have some solid businesses, there is just simply no record or habit of outperformance here and investors bet on that at their peril.
Ample Skepticism
Ingersoll-Rand certainly lives in a tough neighborhood these days, as not only have industrials been weak in general, but those with above-average exposure to areas like construction have had an even tougher go of it. That said, Ingersoll-Rand has still suffered more than most; it's 2011 performance certainly trails the likes of United Technologies (NYSE:UTX), Johnson Controls (NYSE:JCI), Honeywell (NYSE:HON) or Dover (NYSE:DOV).
Read the full piece here:
http://stocks.investopedia.
Ample Skepticism
Ingersoll-Rand certainly lives in a tough neighborhood these days, as not only have industrials been weak in general, but those with above-average exposure to areas like construction have had an even tougher go of it. That said, Ingersoll-Rand has still suffered more than most; it's 2011 performance certainly trails the likes of United Technologies (NYSE:UTX), Johnson Controls (NYSE:JCI), Honeywell (NYSE:HON) or Dover (NYSE:DOV).
Read the full piece here:
http://stocks.investopedia.
Investopedia: 2011 - Another Sick Year For Larger Med-Tech
Healthcare may not have been in the emergency room, or even the ICU, during 2011, but this sector was sick from beginning to end. Unfortunately, the story that was true in 2010 is still true today - higher unemployment means fewer people with health insurance, and even those with coverage are more nervous about taking time off or meeting their copays. At the same time, hospitals and the federal government continue to draw hard lines on pricing, and there have been few innovative product launches to stimulate new markets.
Just to frame the discussion, the Dow Jones U.S. Medical Devices Index Fund (NYSE:IHI) has fallen more than 5% year-to-date as of this writing.
A Very Familiar Name on Top
Yet again, one name dominated the list of top-performing med-techs. Intuitive Surgical (Nasdaq:ISRG) is still really the only game in town when it comes to surgical robots, and demand for these devices has remained high despite a fairly conservative environment for hospital equipment. Intuitive has seen revenue rise nearly 30% over the trailing twelve months, while the stock has jumped nearly 70%. Trading at over 23 times EBITDA and nearly 10 times revenue, this is hardly an undiscovered bargain in the space, but it does offer the growth that institutional investors are so desperate to find. (For related reading, see A Primer On The Biotech Sector.)
To continue, please follow this link:
http://stocks.investopedia.
Just to frame the discussion, the Dow Jones U.S. Medical Devices Index Fund (NYSE:IHI) has fallen more than 5% year-to-date as of this writing.
A Very Familiar Name on Top
Yet again, one name dominated the list of top-performing med-techs. Intuitive Surgical (Nasdaq:ISRG) is still really the only game in town when it comes to surgical robots, and demand for these devices has remained high despite a fairly conservative environment for hospital equipment. Intuitive has seen revenue rise nearly 30% over the trailing twelve months, while the stock has jumped nearly 70%. Trading at over 23 times EBITDA and nearly 10 times revenue, this is hardly an undiscovered bargain in the space, but it does offer the growth that institutional investors are so desperate to find. (For related reading, see A Primer On The Biotech Sector.)
To continue, please follow this link:
http://stocks.investopedia.
Friday, July 1, 2011
Investopedia: Acuity Shines A Little Brighter
There are plenty of reasons the lighting market should be a little dim these days. Residential construction activity is almost nonexistent in many major markets, Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) are not seeing much renovation demand, and commercial real estate is scarcely better. On top of that, customers have other pressing financial obligations that take precedence over swapping out inefficient lighting fixtures, and many consumers are resisting the mandatory switch away from incandescent lights.
So with Philips (NYSE:PHG) already forecasting a bad quarter from lighting, Siemens (NYSE:SI) backing that up and Cree (Nasdaq:CREE) struggling mightily, it would only make sense for Acuity Brands (NYSE:AYI), the No.1 lightning equipment company in North America, to be struggling as well.
Third Quarter Results Not As Bad As Feared
Given the gloomy guidance from Philips and Siemens, Acuity actually seemed to do quite well this quarter. Revenue was up 12% (up 9% on an organic basis) and nearly matched the high-end estimate on the Street. Growth was boosted by volume (up 5%), and the company seems to be succeeding in pushing through price increases.
To read the full article, please click the link:
http://stocks.investopedia.
So with Philips (NYSE:PHG) already forecasting a bad quarter from lighting, Siemens (NYSE:SI) backing that up and Cree (Nasdaq:CREE) struggling mightily, it would only make sense for Acuity Brands (NYSE:AYI), the No.1 lightning equipment company in North America, to be struggling as well.
Third Quarter Results Not As Bad As Feared
Given the gloomy guidance from Philips and Siemens, Acuity actually seemed to do quite well this quarter. Revenue was up 12% (up 9% on an organic basis) and nearly matched the high-end estimate on the Street. Growth was boosted by volume (up 5%), and the company seems to be succeeding in pushing through price increases.
To read the full article, please click the link:
http://stocks.investopedia.
Monday, February 28, 2011
Investopedia: Home Depot Pulls Ahead Of Lowe's
Hopefully the management at Lowe's (NYSE:LOW) are racing fans, because it seems like NASCAR tracks are about the only place where Lowe's is really beating Home Depot (NYSE:HD) these days. While both companies are clearly pulling out of the depths of the one-two punch of the housing crash and recession, Home Depot seems to have pulled ahead in many operating metrics and this fiscal fourth quarter is a good opportunity to assess where these two rivals stand.
Good Caps to the Year, But Better For HD
Both companies ended 2010 on solid notes, but Home Depot is likely to come away with the gold ring for this quarter. Home Depot saw revenue rise just under 4%, with comp growth of 3.9%. That comp growth, in turn, was comprised of average ticket growth of 2.6% (people buying more) and transaction volume growth of 1.4% (more people buying).
Without wanting to make too much out of it, it is notable that Home Depot saw comps fade throughout the quarter - a detail that would have been more concerning in the absence of pretty healthy guidance. It is also worth noting that "real" comp growth was more on the order of 2-2.5%, as the company benefited from a more aggressive position in appliances and a home improvement credit. (For more, see Analyzing Retail Stocks.)
Please continue on via this link:
http://stocks.investopedia.
Good Caps to the Year, But Better For HD
Both companies ended 2010 on solid notes, but Home Depot is likely to come away with the gold ring for this quarter. Home Depot saw revenue rise just under 4%, with comp growth of 3.9%. That comp growth, in turn, was comprised of average ticket growth of 2.6% (people buying more) and transaction volume growth of 1.4% (more people buying).
Without wanting to make too much out of it, it is notable that Home Depot saw comps fade throughout the quarter - a detail that would have been more concerning in the absence of pretty healthy guidance. It is also worth noting that "real" comp growth was more on the order of 2-2.5%, as the company benefited from a more aggressive position in appliances and a home improvement credit. (For more, see Analyzing Retail Stocks.)
Please continue on via this link:
http://stocks.investopedia.
Friday, December 10, 2010
Cooper: A Growing Play On Eye Care
For investors who want to play any trends in eye health, pure plays are few and far between. Most are either small divisions of huge companies (Novartis' (NYSE:NVS) Ciba Vision), private (Bausch & Lomb), very small (ISTA Pharmaceuticals (Nasdaq:ISTA)), or not really involved in the medical side (Luxottica (NYSE:LUX)). That makes Cooper Companies (NYSE:COO) a pretty rare company, and the fact that it grows is a cherry on top of the sundae.
A Strong End to the Year
Cooper posted a solid finish to its 2010 fiscal year. Revenue rose 11% to $313 million, surpassing the high end of what was a surprisingly tight range of estimates. The company's vision business (which is about 85% of the total) saw revenue growth of 10%, fueled at least in part by 88% growth in silicon hydrogel lenses. Its other business, surgical tools for the ob/gyn market, saw 14% reported growth.
Cooper also did a fine job with respect to generating profits. Gross margin improved nearly four full points, while operating profits jumped 56% from the year-ago period. Profitability was definitely helped by the surgical business, where segment gross profits jumped about 12 points from the year-ago period and the operating margin was well above the corporate average (28% vs. 21.4%).
Please click the link below for the full piece:
http://stocks.investopedia.
A Strong End to the Year
Cooper posted a solid finish to its 2010 fiscal year. Revenue rose 11% to $313 million, surpassing the high end of what was a surprisingly tight range of estimates. The company's vision business (which is about 85% of the total) saw revenue growth of 10%, fueled at least in part by 88% growth in silicon hydrogel lenses. Its other business, surgical tools for the ob/gyn market, saw 14% reported growth.
Cooper also did a fine job with respect to generating profits. Gross margin improved nearly four full points, while operating profits jumped 56% from the year-ago period. Profitability was definitely helped by the surgical business, where segment gross profits jumped about 12 points from the year-ago period and the operating margin was well above the corporate average (28% vs. 21.4%).
Please click the link below for the full piece:
http://stocks.investopedia.
Friday, October 22, 2010
Feeling Better With Danaher
Danaher (NYSE:DHR) may be a real handful for the analysts that follow the stock, but its diverse business model is a good barometer of many different markets. Although some of Danaher's strong performance this quarter should certainly be attributed to the quality of the company and its management, it seems reasonable to conclude that economic conditions are actually not too bad.
The Quarter That Was
Danaher reported another quarter of double-digit growth (the company has an informal target of 10% quarterly growth), with revenue up 16%. Of that figure, "core" revenue growth was better than 12%.
The medical segment was something of a laggard at better than 7% organic growth, but that is actually not a bad performance at all by the current standards of healthcare. Tools was also relatively weak at 5% organic growth, but the company's joint venture with Cooper Industries (NYSE:CPB) makes the comparison less useful. Professional instrumentation was strong at over 15% growth, and industrial was the leader at better than 16% growth.
Please click below to continue on to the full article:
http://stocks.investopedia.com/stock-analysis/2010/Feeling-Better-With-Danaher-DHR-CPB-ALGN-ITW-A-EMR-TMO1022.aspx
The Quarter That Was
Danaher reported another quarter of double-digit growth (the company has an informal target of 10% quarterly growth), with revenue up 16%. Of that figure, "core" revenue growth was better than 12%.
The medical segment was something of a laggard at better than 7% organic growth, but that is actually not a bad performance at all by the current standards of healthcare. Tools was also relatively weak at 5% organic growth, but the company's joint venture with Cooper Industries (NYSE:CPB) makes the comparison less useful. Professional instrumentation was strong at over 15% growth, and industrial was the leader at better than 16% growth.
Please click below to continue on to the full article:
http://stocks.investopedia.com/stock-analysis/2010/Feeling-Better-With-Danaher-DHR-CPB-ALGN-ITW-A-EMR-TMO1022.aspx
Friday, October 8, 2010
Acuity Brands Still Waiting For The Turn
Non-residential construction is still in a dark place, and that has kept the prospects for Acuity Brands (NYSE:AYI) dim as well. Even still, this leading lighting company has managed to tread water through difficult times and could be relatively close to a turning point.
The Quarter That Was
The company's fiscal fourth quarter was another tough one, but Acuity nevertheless managed to surprise and surpass the analyst expectations. Revenue rose 5%, helped by a 6% boost in volume. Although the companies' quarters do not line up evenly (Acuity has a August year-end), this result is somewhat mixed relative to rival lighting companies - Hubbell (NYSE:HUB.A) had nearly 11% growth in the last quarter, while Cooper (NYSE:CBE) had a little more than 5% growth.
Please click below for the full article:
http://stocks.investopedia.com/stock-analysis/2010/Acuity-Brands-Still-Waiting-For-The-Turn-AYI-HUB.A-CBE-SSD-NCS1008.aspx
The Quarter That Was
The company's fiscal fourth quarter was another tough one, but Acuity nevertheless managed to surprise and surpass the analyst expectations. Revenue rose 5%, helped by a 6% boost in volume. Although the companies' quarters do not line up evenly (Acuity has a August year-end), this result is somewhat mixed relative to rival lighting companies - Hubbell (NYSE:HUB.A) had nearly 11% growth in the last quarter, while Cooper (NYSE:CBE) had a little more than 5% growth.
Please click below for the full article:
http://stocks.investopedia.com/stock-analysis/2010/Acuity-Brands-Still-Waiting-For-The-Turn-AYI-HUB.A-CBE-SSD-NCS1008.aspx
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