How Are Investor’s Eyeing These Healthcare Stocks – CSL, RMD, COH, NAN

How Are Investor’s Eyeing These Healthcare Stocks – CSL, RMD, COH, NAN

CSL Limited (ASX: CSL)

CSL Limited (ASX: CSL) is engaged in the business of biopharmaceutical and allied products with R&D, manufacturing, marketing and distribution. Basically, the group operates through two segments – (1) CSL Behring: focuses on plasma products and recombinants and (2) Seqirus: focuses on non-plasma biotherapeutic and influenza related products.

The company reported net profit after tax of $1,161 million in H1 FY19, recording a growth of 7%, (10% on a constant currency basis). The group is planning to open 30 to 35 new collection centres in FY19, which is currently on track.

CSL management expects net profit after tax for FY19 to be in the range of $1,880 million to $1,950 million (CC). Considering the H1 FY19 results and ongoing performance, the bottom line is likely to touch the upper end of the range.

At current market price of $199.87, the stock is trading at price to earnings multiple of 35.17x as on 3rd May 2019.

ResMed Inc. (ASX: RMD)

ResMed Inc. (ASX: RMD) provides cloud-connected medical devices to humans caught up with sleep apnea, COPD and other chronic diseases. These innovative solutions are spread over 120 countries. The company had released financial and operational results for 3Q FY19 on 2nd May 2019.

The company witnessed a strong quarter with revenue growth and gross margin expansion. The fiscal prudence assisted the group to drive leverage and improved operating profit. RMD posted revenue of $651.1 million, a growth of 8% (9% on a constant currency basis) in H1 FY19. The group’s gross margin has expanded by 70 basis points to 58.9% with a net operating profit growth of 8%. GAAP diluted EPS came in at $0.86 for H1 FY19.

At current market price of $16.26, the stock is available at P/E multiple of 33.51x, with a market cap of $21.21 billion as on 3rd May 2019.

Cochlear Limited (ASX: COH)

Cochlear Limited (ASX: COH) recently announced the launch of the Nucleus® Profile™ Plus Series cochlear implant. It scans the images for routine 1.5 and 3 Tesla magnetic resonance imaging without removing the internal magnet. Initially, the product will be commercially available in Germany and later in other European countries. The company plans to launch Nucleus® Profile™ Plus Series in other developed markets over the period of time.

Top line of the services business grew 28% (21% in CC) in H1 FY19, backed by the recipient base growth, which represents ~30% of total sales. Revenue from the implant business saw a growth of 5% (0% in CC) with unit growth of 5%. Sales from acoustics business witnessed a growth of 7% (1% in CC) with demand continuing for the Baha 5 sound processor range.

At current market price of $191.0, the stock is trading at price to earnings multiple of $41.80x with annual dividend yield of 1.65% as on 3rd May 2019.

Nanosonics Limited (ASX: NAN)

Nanosonics Limited (ASX: NAN) is a leader in infection control solutions. NAN is engaged in manufacturing and distribution of the trophon® which is EPR ultrasound probe disinfector and its associated consumables and accessories. Additionally, it is also engaged in R&D and commercialisation of infection control and decontamination products and related technologies. The company posted strong set of numbers for H1 FY19 and continued to grow the trophon® installed base. The company continued to progress with various aspects of the strategic growth priorities, including expanding geographically with new product development. Sales for H1 FY19 at $40.7 million experienced a growth of 36% on Y-o-Y basis and 33% on H-o-H basis.

At CMP of $4.870, the stock is trading at higher valuation with price to earnings multiple of 137.18x as on 3rd May 2019.


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