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FPH - Fisher & Paykel Healthcare Corporation

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Joe Blow

Joe Blow

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

Cheers
Country Lad

fph 25 May 13.gif
 
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.
 
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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FPH re ASF 2019-12-11.png


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.
 
rnr said:
I don't hold.
Click to expand...

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

fph.PNG
 
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.
 
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.
 
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.
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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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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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