Fisher & Paykel Healthcare (NZSE:FPH) - Share price, News & Analysis

Q: What is the Fair Price of FPH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FPH (NZ$21.37) is trading above our estimate of [[fair value]] (NZ$21.19)

FPH fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

FPH Stock Overview

Fisher & Paykel Healthcare Corporation Limited, together with its subsidiaries, designs, manufactures, markets, and sells medical device products and systems worldwide.

Rewards

Earnings are forecast to grow 8.1% per year

Risk Analysis

FPH passed our risk checks.

Fisher & Paykel Healthcare Competitors

EBOS Group

NZSE:EBO

NZ$7.4b

Ryman Healthcare

NZSE:RYM

NZ$4.7b

Summerset Group Holdings

NZSE:SUM

NZ$2.6b

DiaSorin

BIT:DIA

€7.6b

Price History & Performance

Summary of all time highs, changes and price drops for Fisher & Paykel Healthcare
Historical stock prices
Current Share Price	NZ$21.37
52 Week High	NZ$34.55
52 Week Low	NZ$19.00
Beta	-0.030
1 Month Change	3.74%
3 Month Change	2.84%
1 Year Change	-31.18%
3 Year Change	33.81%
5 Year Change	84.54%
Change since IPO	4,648.89%

Recent News & Updates

Jul 24

Calculating The Fair Value Of Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH)

Today we will run through one way of estimating the intrinsic value of Fisher & Paykel Healthcare Corporation Limited...

Jul 10

A Look Into Fisher & Paykel Healthcare's (NZSE:FPH) Impressive Returns On Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things...

Jun 12

Fisher & Paykel Healthcare (NZSE:FPH) Seems To Use Debt Quite Sensibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

	FPH	NZ Medical Equipment	NZ Market
7D	1.8%	-1.3%	0.02%
1Y	-31.2%	-25.0%	-11.3%

Return vs Industry: FPH underperformed the NZ Medical Equipment industry which returned -25% over the past year.

Return vs Market: FPH underperformed the NZ Market which returned -11.3% over the past year.

Price Volatility

Is FPH's price volatile compared to industry and market?
FPH volatility
FPH Average Weekly Movement	4.3%
Medical Equipment Industry Average Movement	11.3%
Market Average Movement	4.5%
10% most volatile stocks in NZ Market	8.1%
10% least volatile stocks in NZ Market	3.0%

Stable Share Price: FPH is not significantly more volatile than the rest of NZ stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FPH's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1934	6,788	Lewis Gradon	https://www.fphcare.com

Fisher & Paykel Healthcare Corporation Limited, together with its subsidiaries, designs, manufactures, markets, and sells medical device products and systems worldwide. It also provides its products for use in acute and chronic respiratory care, and surgery, as well as the treatment of obstructive sleep apnea (OSA) in the home and hospital. The company offers Airvo 2, a humidified nasal high flow system; Optiflow, a nasal high flow therapy; and F&P 850 System, a noninvasive and invasive ventilation system.

Fisher & Paykel Healthcare Fundamentals Summary

How do Fisher & Paykel Healthcare's earnings and revenue compare to its market cap?
FPH fundamental statistics
Market Cap	NZ$12.03b
Earnings (TTM)	NZ$376.90m
Revenue (TTM)	NZ$1.68b

32.7x

P/E Ratio

7.3x

P/S Ratio

Is FPH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FPH income statement (TTM)
Revenue	NZ$1.68b
Cost of Revenue	NZ$629.00m
Gross Profit	NZ$1.05b
Other Expenses	NZ$675.80m
Earnings	NZ$376.90m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.65
Gross Margin	62.60%
Net Profit Margin	22.41%
Debt/Equity Ratio	4.1%

How did FPH perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

60%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is FPH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FPH?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FPH. This is calculated by dividing FPH's market cap by their current preferred multiple.
What is FPH's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NZ$12.03b

FPH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	7x
Enterprise Value/EBITDA	20.5x
PEG Ratio	4x

Price to Earnings Ratio vs Peers

How does FPH's PE Ratio compare to its peers?

FPH PE Ratio vs Peers

The above table shows the PE ratio for FPH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	17.6x
EBO EBOS Group	34.4x	15.1%	NZ$7.4b
RYM Ryman Healthcare	6.8x	-3.7%	NZ$4.7b
SUM Summerset Group Holdings	4.8x	-65.2%	NZ$2.6b
DIA DiaSorin	25x	8.0%	€7.6b
FPH Fisher & Paykel Healthcare	31.9x	8.1%	NZ$12.0b

Price-To-Earnings vs Peers: FPH is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the peer average (17.6x).

Price to Earnings Ratio vs Industry

How does FPH's PE Ratio compare vs other companies in the Global Medical Equipment Industry?

Price-To-Earnings vs Industry: FPH is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the Oceanic Medical Equipment industry average (31.9x)

Price to Earnings Ratio vs Fair Ratio

What is FPH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FPH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	32.7x
Fair PE Ratio	20.4x

Price-To-Earnings vs Fair Ratio: FPH is expensive based on its Price-To-Earnings Ratio (32.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.4x).

Share Price vs Fair Value

What is the Fair Price of FPH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FPH (NZ$21.37) is trading above our estimate of fair value (NZ$21.19)

Significantly Below Fair Value: FPH is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Fisher & Paykel Healthcare forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FPH's forecast earnings growth (8.1% per year) is above the savings rate (2.1%).

Earnings vs Market: FPH's earnings (8.1% per year) are forecast to grow faster than the NZ market (5.4% per year).

High Growth Earnings: FPH's earnings are forecast to grow, but not significantly.

Revenue vs Market: FPH's revenue (6.7% per year) is forecast to grow faster than the NZ market (5.8% per year).

High Growth Revenue: FPH's revenue (6.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FPH's Return on Equity is forecast to be high in 3 years time (21.5%)

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Past Performance

How has Fisher & Paykel Healthcare performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

25.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FPH has high quality earnings.

Growing Profit Margin: FPH's current net profit margins (22.4%) are lower than last year (26.6%).

Past Earnings Growth Analysis

Earnings Trend: FPH's earnings have grown significantly by 25% per year over the past 5 years.

Accelerating Growth: FPH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FPH had negative earnings growth (-28.1%) over the past year, making it difficult to compare to the Medical Equipment industry average (32.6%).

Return on Equity

High ROE: FPH's Return on Equity (22.4%) is considered high.

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Financial Health

How is Fisher & Paykel Healthcare's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FPH's short term assets (NZ$887.9M) exceed its short term liabilities (NZ$303.9M).

Long Term Liabilities: FPH's short term assets (NZ$887.9M) exceed its long term liabilities (NZ$123.4M).

Debt to Equity History and Analysis

Debt Level: FPH has more cash than its total debt.

Reducing Debt: FPH's debt to equity ratio has reduced from 9.4% to 4.1% over the past 5 years.

Debt Coverage: FPH's debt is well covered by operating cash flow (474.8%).

Interest Coverage: FPH's interest payments on its debt are well covered by EBIT (219.8x coverage).

Balance Sheet

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Dividend

What is Fisher & Paykel Healthcare current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.85%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FPH's dividend (1.85%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (2.95%).

High Dividend: FPH's dividend (1.85%) is low compared to the top 25% of dividend payers in the NZ market (5.81%).

Stability and Growth of Payments

Stable Dividend: FPH is not paying a notable dividend for the NZ market, therefore no need to check if payments are stable.

Growing Dividend: FPH is not paying a notable dividend for the NZ market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: FPH is not paying a notable dividend for the NZ market.

Cash Payout to Shareholders

Cash Flow Coverage: FPH is not paying a notable dividend for the NZ market.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure

CEO

Lewis Gradon (61 yo)

6.33yrs

Tenure

NZ$3,998,487

Compensation

Mr. Lewis G. Gradon has been the Chief Executive Officer, Managing Director & Executive Director at Fisher & Paykel Healthcare Corporation Limited since April 1, 2016. He served as the Senior Vice Presiden...

CEO Compensation Analysis

Compensation vs Market: Lewis's total compensation ($USD2.57M) is about average for companies of similar size in the NZ market ($USD2.05M).

Compensation vs Earnings: Lewis's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: FPH's management team is considered experienced (4.9 years average tenure).

Board Members

Experienced Board: FPH's board of directors are considered experienced (6.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: FPH insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31