Sharechat Logo

Fisher & Paykel Healthcare

By Dan Stratful (AFA)

Thursday 26th July 2012

Text too small?

Fisher & Paykel Healthcare's (NZX: FPH ) full year results for the year ending 31 March 2012 (FY12) showed very little growth in reported New Zealand dollar (NZD) terms.

However, in constant currency terms, sales increased with FY12 respiratory and acute care product group operating revenue increasing by 18% in US dollar (USD) terms while obstructive sleep apnea product group revenue increased by 7% when measured in USD terms.

Reported net profit however, came in at NZ$64.1 million, which was no real improvement on the NZ$63.9 million (excluding the one off non cash deferred tax charge relating to legislative changes) it reported in FY11.

With 99% of FPH's revenue derived from overseas, FPH is highly exposed to foreign currency movements which have proved unfavorable in recent years and this looks set to continue.

FPH expects underlying revenue growth to accelerate in FY13 as a number of new products are introduced around the world. FY13 net profit of between NZ$62 million to NZ$70 million is expected based on an NZD:USD exchange rate of 75c to 80c.

In FY14 Analysts' expect net profit to come in at NZ$80 million, and on a price: earnings (PE ratio) basis FPH's shares are the cheapest they've been in years current trading at 15.6x FY13's profit forecast and 12.9x FY14's profit forecast, well down the PE of over 20x is used to trade on several years ago.   

From a dividend yield point-of-view the shares are also attractive, which due to the steep drop off in the share price, now stands at 8.8%pa - based on the FY12 gross dividend (including imputation credits).

FPH estimates its markets are worth US$3 billion and growing and all FPH shareholders can hope for is a weaker NZD in the future.

About Fisher & Paykel Healthcare:
FPH designs, manufactures and markets products and systems used in respiratory care, acute care, and the treatment of obstructive sleep apnea. Its products and systems are sold in over 120 countries worldwide through direct sales offices and a network of distributors.

Status: HOLD

FPH's shares today traded at $1.95


Disclaimer
In accordance with the Financial Advisers Act 2008 ("the Act") Sharechat is "Class Advice" and any advice or recommendations contained on this webpage is not "Personalised Advice" as defined by the Act. This means Sharechat does not take into account an investor's particular financial position, financial needs, financial goals, risk profile or asset allocation. Investor's who require "Personalised Advice" should contact an Authorised Financial Adviser (AFA).


 

DISCLAIMER: To the extent that any of the content above constitutes advice, it is general advice that has been prepared without reference to investor’s objectives, financial situation or needs. Before acting on any advice, investors should consider the appropriateness of the advice and IRG recommend that investors should obtain appropriate financial, legal and taxation advice before making any financial investment decision. The report is based on information compiled from public information and private research. IRG have completed the report on a best endeavours basis and do not accept any liability of loss or damage. IRG suggest that clients use this as part of a decision making process and check key data before making any investment decisions.
Employees may have an interest in the securities discussed in this report.

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar rally may limit profit gains for Fisher and Paykel Healthcare, brokerage says
FISHER & PAYKEL HEALTHCARE ANNOUNCES NEW NASAL PILLOWS MASK AT INVESTOR DAY
Shares in Fisher and Paykel Healthcare third-best performer on NZX 50 after raising earnings forecast
Fisher and Paykel Healthcare raises 2014 earnings forecast on higher sales, margins
F and P Healthcare shares jump to highest in more than 2 years on profit outlook
F and P Healthcare beats 2013 guidance, forecasts boost in 2014 profit; shares gain to 2 1/2 year high
F and P Healthcare shares rise to two-year high as First NZ raises rating on better outlook
Fisher & Paykel Healthcare
F and P Healthcare lifts guidance as sales grow, margins widen; shares rally
F&P Healthcare 1H profit rises 18%, on record sales, wider margins