# FPH - Fisher & Paykel Healthcare Corporation



## Joe Blow (27 June 2010)

Fisher & Paykel Healthcare Corporation Limited (FPH) is involved in the design, manufacture and marketing of heated humidification products and systems for respiratory care and treatment of obstructive sleep apnea. Exporting to over 120 countries FPH's head office and manufacturing operations are located in New Zealand. Major clients are hospitals, home healthcare providers, distributors and manufacturers of medical devices.

http://www.fphcare.com


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## Country Lad (25 May 2013)

Interesting that this one has never been mentioned. It rose on the market's last 2 down days.

Cheers
Country Lad


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## piggybank (4 December 2013)

Update.


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## piggybank (10 December 2014)

Hi,

It has certainly been a big winner for those who (are still holding) purchased stock when it last bottomed out in July 2012 (and are still holding). If their medical equipment is as good as their washing machines then I'm not surprised they are selling so well. Today's close of $5.62 is another break into *Blue Sky* on increasing volume. The company's FY2015 Half Year Results Presentation were released to the market just 3 weeks ago and it as since rose 10%. 

You can read it by clicking on this link:- http://www.stocknessmonster.com/news-item?S=FPH&E=ASX&N=830643

Total Shareholder Return (avg annual rate) - 1yr = 57%  3yr = 49%
Debt/Equity Ratio	 for the company is 26.9% compared to the market of 31.1%

 *Company* 
P/E Ratio	29.80	      
P/B Ratio	7.93
P/E Growth 1.88
P/S Ratio	5.70

*Please be advised that this isn't a recommendation but purely my view - please do your own reseach if you are thinking of either buying or selling this stock.*


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## Wysiwyg (25 February 2016)

FPH made an intraday all time high but a $100k sell at 1.53pm saw price fall back to near yesterday close. Second rejection of higher prices in a row. Maybe a pullback. Don't know, don't care, just feeding the repeater.


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## rnr (11 December 2019)

Feb 25, 2016 was the 5th & last post on this thread when the price closed @ $8.35. As can be seen from the above chart he close of today was $20.64 just 52¢ short of the ATH of $21.16.
Yesterday's bar had a range of 66¢ so quite capable of taking out the ATH within a short period of time OR perhaps an a-b-c wave is forming and price might move down below the $19.60 before taking on the ATH.

I don't hold.


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## peter2 (11 December 2019)

rnr said:


> I don't hold.




Please don't remind me of another one that got away from me. I was shaken out by some abnormal volatility (late 2018) and never re-bought. Arrgh. 

FPH's humidified gases make a big difference to the health and recovery of patients requiring ventilation assistance.


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## JTLP (13 December 2019)

This one kills me. Remember looking sub $9 thinking “mmm little expensive”. Nekminnit


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## Knobby22 (13 December 2019)

I looked too. Hard sometimes.


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## galumay (13 December 2019)

LOL! Me too, never got over feeling it was too pricey. I have made the same mistake a few times, also got it right a couple, REH & TNE being two I overcame my belief that they were too expensive at the time.


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## Trav. (25 January 2020)

I entered last week for a short term trade and up a smidgen at the moment.

FPH broke through $22 and set ATH @ 22.19 before closing $22.02 on Friday which I saw as a positive, so looking forward to FPH continuing it's run next week.


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## Trav. (31 January 2020)

Nice close for the week and another ATH set @ $22.47

Holding


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## JTLP (4 February 2020)

This one has far exceeded my expectations. That $9 is a distant memory now.


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## qldfrog (4 February 2020)

Name has healthcare in it, with a virus scare/epidemy, it can only be a winner.i hesitated between then and ANN then doubled up on ANN .time will tell


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## myrtie100 (23 March 2020)

Since this is a company that specialises in products addressing respiritory health issues, I thought it might be a good bet for the April 2020 tipping competition.

The chart still looks good too!  Fingers-crossed it doesn't crash and burn now I've said that.....


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## Dona Ferentes (17 July 2020)

*Livewire Markets: *Fisher & Paykel Health..... A manufacturer of a number of different products. One of them is ventilators, which has obviously put them in the spotlight. It's had a cracking year. *Buy, hold, or sell?* Can it do it again?

*Jun Bei Liu (Tribeca): *Fisher & Paykel is a* hold to sell*. Look, I think it's an incredible company, it's probably a sell for me at this point. It's an incredible company, done really, really well and delivered significant amount of earnings growth because of COVID-related products pull-through. And we think structurally will mean, and the hype for their product and the demand, will be significantly higher.

However, the current lump earning is pull forwards of many years of growth in their future. And with the earnings of trading more than 50 times it certainly seems they're bit too rich at this point. We prefer the cheaper alternative such as ResMed at this point.

*Livewire Markets:*  Too rich for Jun Bei. Are you a buy, hold, or sell on Fisher & Paykel?

*Eleanor Swanson (Firetrail) *: Yeah, we agree. Fisher & Paykel is *a sell*. As you've alluded to, two thirds of the business is focused on ventilators, selling them to hospitals. And just given COVID, Jun Bei has alluded to the pull forward of demand there. We do think some of that is sustainable, so they will retain some of the market share they've gained for this nasal high flow product.

However, over 50 times earnings well and truly price priced in, and in addition a third of the business is focused on sleep apnea and they're actually losing market share in this segment, so it's a sell for us.


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## qldfrog (17 July 2020)

if it helps and behind the sensational news: ventilators are a negative for covid life expectancy, read a bit about that, by the time you put someone under ventilation, it is a bit late for a better than 50/50 pc chance of survival...based on European experience, while the initial phase was a rush for ventilators in China, France Spain and Italy, this is not the case anymore and avoided if posible as it create more inflamation and scars if I read it properly;
as a result, I would say: sell as quickly as possible as they surf the wave of gov orders which will quickly dry up.


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## Dona Ferentes (25 November 2020)

_Intensive care patients in need of invasive ventilation – or intubation, as it's better known – rely on F&P’s *humidifiers *to warm and moisten oxygen to body temperature. And COVID-19 patients outside ICUs are increasingly using F&P’s high-flow oxygen product, which is called Optiflow and is billed as a replacement for conventional oxygen therapy._
_
F&P hasn’t raised prices despite surging demand, and has actually taken a small hit to margins because the pandemic has pushed freight costs higher. Operating revenue surged 59 per cent to $NZ910.2 million ($862.7 million) as earnings rose 86 per cent to $NZ225.5 million ($213.7 million).
_
_Typically, the group has derived about 60 per cent of its revenue from selling hardware and associated consumables into hospitals, with the other 40 per cent from selling products for home care, particularly in the treatment of sleep apnoea. But in the September half, 75 per cent of revenue came from the hospital side of the business. Hospital hardware sales surged 383 per cent as hospitals around the world scrambled to build and then rebuild their inventory to treat COVID-19 cases_.

F&P’s full-year outlook suggests growth will moderate somewhat as the world gets on top of COVID-19; full-year operating revenue is forecast at $NZ1.7 billion and net profit between $NZ400 million and $NZ415 million. 

But while CEO Lewis Gradon, reflecting on the accelerated sales, is “thinking that we’ve moved things forward at least two or three years”, he is also confident there is plenty of room to grow after the virus passes.







> "We had such low global penetration prior to the pandemic we don’t think we’re anywhere near saturating that market,” he says.



In normal times the majority of its revenue comes not from the sale of machines but from the sale of consumables used to treat individual patients. So COVID-19 has not only boosted hardware sales for F&P, but it has greatly increased the size of its installed base of devices, which will mean consumable sales will grow sharply over time.


> "You might see the utilisation of F&P's devices go down a little in a post-COVID world … but once you’ve got the box in a hospital, you’re layering growth," says an analyst.


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## peter2 (25 November 2020)

I've often wondered why FPH hasn't done better during this respiratory pandemic. The price trend from 11.50 to 30.00 was pre-covid and due to the increasing use of their humidifiers. During the pandemic the price has traded in a large range 30 - 35 - 30. 

The CEO's reasons for their decreasing margins seems reasonable.  Company analysts know these details much better than the retail trader. 

If the CEO outlook re increasing consumables post pandemic is correct then FPH may be a reasonable hold for the longer term if bought near the bottom of this range. Buying after a break-out > 35.00 seems riskier from a RR POV.


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## Dona Ferentes (25 November 2020)

PE over 50,. Priced to perfection?


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## peter2 (25 November 2020)

piggybank said:


> P/E Ratio 29.80




Posted back in Dec 2014 when the price was *$6.00*. 



JTLP said:


> This one kills me. Remember looking sub $9 thinking “mmm little expensive”.





Knobby22 said:


> I looked too. Hard sometimes.





galumay said:


> LOL! Me too, never got over feeling it was too pricey.




posted when price was *$20*

Does P/E really mean anything these days?

Ps: Sorry if I've dredged up any misgivings about not buying when price was much lower. We've all got to stick to our methods and that means we'll always miss heaps.


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## rnr (26 November 2020)

peter2 said:


> Posted back in Dec 2014 when the price was *$6.00*.
> 
> 
> 
> ...









FPH would seem to be forming the last leg of an A - B - C correction wave which could well terminate around support at the $28.50 mark.

Well, that's just my take on the attached chart.

Cheers, Rob


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## Trav. (22 January 2021)

Some good news for FPH - up +7% early in the session


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## divs4ever (25 May 2022)

Fisher & Paykel Healthcare announces strong results for the 2022 financial year

Auckland, New Zealand, 25 May 2022 – Fisher & Paykel Healthcare Corporation Limited today
announced its results for the full year ended 31 March 2022.
Managing Director and CEO Lewis Gradon said, “Over the last two financial years we have supplied
$880 million of hospital hardware, the equivalent of approximately 10 years’ hardware sales prior to
COVID-19. The growing body of evidence supporting the use of nasal high flow and our other
respiratory therapies shows that our products have a clear role to play in improving care and
outcomes beyond COVID-19 patients. We have a proven fifty-year track record of changing clinical
practice and now we have the additional benefit of customers already having our hardware and
clinical experience with its use.”
Following an unprecedented 2021 financial year, the company’s performance was once again
strong, with operating revenue 33% above the pre-COVID-19 2020 financial year. Total operating
revenue for the 2022 financial year was $1.68 billion, down 15% or 14% in constant currency. Net
profit after tax was $376.9 million, a 28% decline from the previous financial year, or a 30% decline
in constant currency.
New product announcements
“During the 2022 financial year, we invested $154 million into research and development and we
brought a number of exciting new products to the market.
“Today, we announced the launch of Optiflow Switch™ and Optiflow Trace™ nasal high flow
interfaces, two new products that allow easier use of our Optiflow therapy in anesthesia. We have
accelerated our investment in a specialist sales force to take advantage of this opportunity, and we
plan to continue investing in this area in the coming years,” said Mr Gradon.
The company also announced the launch of its revolutionary new Airvo™ 3 device, which is
designed to faciliate high flow therapy for more patients in more areas of the hospital. The Airvo 3
incorporates the company’s OptiO2™ closed-loop system for targeted oxygen delivery and an
integrated battery to enable therapy while a patient moves through different areas of the hospital.
Further detail on these new product launches is available in the two separate news releases which
are attached to this announcement.
Dividend and employee profit share
The company’s directors have approved an increased final dividend of 22.5 cents per share. This
brings the total dividend for the year to 39.5 cents per share, an increase of 4%. The final dividend,
carrying full New Zealand imputation credit, will be paid on 6 July 2022 with a record date of 23 June
2022.
To acknowledge the people of Fisher & Paykel Healthcare, directors also approved a profit-sharing
payment totalling $19 million for the 2022 financial year to be paid to employees who have worked
for the company for a qualifying period.
Commentary on financial results
In the Hospital product group, which includes humidification products used in respiratory, acute and
surgical care, revenue was $1.21 billion, a decline of 19% from the 2021 financial year in both
reported and constant currency. New applications consumables revenue grew 3% in constant
currency. Of total Hospital product group revenue, 27% was from the sale of hardware and 73% was
from the sale of consumables.
In the Homecare product group, which includes products used in the treatment of obstructive sleep
apnea (OSA) and respiratory support in the home, revenue was $469.5 million, a 1% increase over
the previous financial year, or 2% in constant currency. OSA mask revenue grew a pleasing 6% in
the second half of FY22 in constant currency, in an environment of suppressed new OSA patient
diagnoses due to COVID-19 and the limited supply of treatment hardware.
Gross margin decreased by 59 basis points for the year to 62.6%, or a 147 basis points decline in
constant currency compared to the 2021 financial year. High air-freight utilisation and elevated freight
rates continued to weigh overall compared to pre-COVID-19 rates, impacting constant currency gross
margin by approximately 240 basis points.
Looking forward
“In our Homecare product group, our EvoraTM Full mask for OSA launched in the United States in
May 2022. The Evora Full has been one of the most positive new mask launches we have ever
experienced, based on customer feedback and initial sales performance to date in the regions
where it is available. New OSA patient diagnoses rates and the availability of treatment hardware
are also likely to impact our Homecare product group results in the 2023 financial year,” said Mr
Gradon.
“For our Hospital product group, over the last two financial years, we have supplied an extraordinary
$880 million worth of hospital hardware. COVID-19 may have peaked in many parts of the world for
the time being, and many countries have boosted their hospital treatment capacity. As a result, we
do not expect hospital hardware revenue for the 2023 financial year to continue at FY22 levels.
“For FY22, we estimate that the average utilisation of our hospital hardware across the therapy
options was approximately 60% to 70% of a pre-COVID-19 midpoint. We expect that over time,
clinicians will utilise the incremental installed base with an increasing proportion of respiratorycompromised patients in general. The increasing clinical data and recently-published clinical
practice guidelines that have emerged independently of COVID-19 will be instrumental in supporting
this change.
“We are excited by the opportunity to change clinical practice and play our part in improving
outcomes for patients globally. If the change in clinical practice occurs over a three- to five-year
time-frame, it would drive strong growth in hospital consumable sales over this period.
“During the second half of the 2022 financial year, there was a sharp peak for our hospital
consumables sales in December, followed by a low in February. Hospital consumables subsequent
trading to date is exhibiting a slow recovery from February.
“Given the ongoing uncertainties regarding our customers’ stockholding choices and their capacity
to implement new protocols with personnel shortages and the possibility of further surges of COVID19 over the near term, we are not currently providing quantitative revenue or earnings guidance for
the 2023 financial year.
“For gross margin, freight costs are likely to remain elevated, and air-freight a higher proportion of
freight than pre-COVID-19. We are continuing to advance our manufacturing capacity and facilities
projects, and we also expect to hold higher levels of inventory to help address global supply chain
challenges. If freight rates remain at current levels, then we would expect constant currency gross
margin in the 2023 financial year to be in line with the 2022 financial year.
“We expect to continue growing our investment in R&D and SG&A, as longer-term projects are
accelerated and we grow our sales teams to support the installed base of hospital hardware and
deliver on the opportunity in anesthesia.
“To ensure we are well-positioned to meet demand for the ongoing use of our installed base of
hardware and accommodate our strong new product pipeline, we are continuing to invest in our
infrastructure. We expect to invest approximately $700 million in land and buildings over
approximately five years.
“The last several years have been remarkable for our company. Above all, we showed our
customers they can rely on Fisher & Paykel Healthcare and that we’re doing all we can to create the
best-possible outcomes for patients. We want to thank our customers, suppliers, clinical partners
and employees for their support. We look forward to what’s in store for the years ahead,” concluded
Mr Gradon.
Overview of key results for the 2022 financial year
• 28% decline in net profit after tax to $376.9 million, 30% decline in constant currency.
• 15% decline in operating revenue to $1.68 billion, 14% decline in constant currency.
• 19% decline in Hospital operating revenue to $1.21 billion, 19% decline in constant currency.
• 3% constant currency revenue growth for new applications consumables; i.e. products used in
noninvasive ventilation, Optiflow nasal high flow therapy and surgical applications, accounting for
71% of Hospital consumables revenue.
• 1% growth in Homecare operating revenue, 2% growth in constant currency.
• Investment in R&D was 9% of revenue, or $154 million.
• 2% increase in final dividend to 22.5 cps (2021: 22.0 cps).
• 4% increase in total dividends for the financial year to 39.5 cps (2021: 38.0 cps).
About Fisher & Paykel Healthcare
Fisher & Paykel Healthcare is a leading designer, manufacturer and marketer of products and
systems for use in acute and chronic respiratory care, surgery and the treatment of obstructive sleep
apnea. The company’s products are sold in over 120 countries worldwide. For more information
about the company, visit our website www.fphcare.com.


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i do not hold this share , BUT if the market takes this badly , just maybe i will buy a few


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