NZSE:FPH

Stock Analysis Report

Fisher & Paykel Healthcare

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Fisher & Paykel Healthcare's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.2%

FPH

2.7%

NZ Medical Equipment

0.2%

NZ Market


1 Year Return

33.9%

FPH

25.5%

NZ Medical Equipment

18.6%

NZ Market

Return vs Industry: FPH exceeded the NZ Medical Equipment industry which returned 25.5% over the past year.

Return vs Market: FPH exceeded the NZ Market which returned 18.6% over the past year.


Shareholder returns

FPHIndustryMarket
7 Day7.2%2.7%0.2%
30 Day13.5%3.6%1.8%
90 Day19.5%5.8%2.8%
1 Year36.6%33.9%27.7%25.5%23.7%18.6%
3 Year116.1%103.4%60.8%53.1%52.9%33.0%
5 Year292.4%252.5%178.3%154.5%105.3%59.4%

Price Volatility Vs. Market

How volatile is Fisher & Paykel Healthcare's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fisher & Paykel Healthcare undervalued compared to its fair value and its price relative to the market?

51.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: FPH (NZ$18.79) is trading above our estimate of fair value (NZ$13.89)

Significantly Undervalued: FPH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FPH is poor value based on its PE Ratio (51.4x) compared to the Medical Equipment industry average (30x).

PE vs Market: FPH is poor value based on its PE Ratio (51.4x) compared to the NZ market (18.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: FPH is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: FPH is overvalued based on its PB Ratio (11.8x) compared to the XO Medical Equipment industry average (4.4x).


Next Steps

Future Growth

How is Fisher & Paykel Healthcare forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FPH's forecast earnings growth (13.9% per year) is above the savings rate (2.4%).

Earnings vs Market: FPH's earnings (13.9% per year) are forecast to grow faster than the NZ market (7.2% per year).

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

Revenue vs Market: FPH's revenue (10% per year) is forecast to grow faster than the NZ market (4.1% per year).

High Growth Revenue: FPH's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FPH's Return on Equity is forecast to be high in 3 years time (28.5%)


Next Steps

Past Performance

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

15.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FPH's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: FPH's earnings growth over the past year (10%) is below its 5-year average (15.9% per year).

Earnings vs Industry: FPH earnings growth over the past year (10%) underperformed the Medical Equipment industry 21%.


Return on Equity

High ROE: FPH's Return on Equity (22.9%) is considered high.


Return on Assets

ROA vs Industry: FPH has a higher Return on Assets than the Medical Equipment industry average last year.


Return on Capital Employed

ROCE Improving: FPH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Fisher & Paykel Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: FPH's short term assets (NZ$455.3M) exceeds its short term liabilities (NZ$184.4M)

Long Term Liabilities: FPH's short term assets (455.3M) exceeds its long term liabilities (109.1M)


Debt to Equity History and Analysis

Debt Level: FPH's debt to equity ratio (9.5%) is considered satisfactory

Reducing Debt: FPH's debt to equity ratio has reduced from 27.7% to 9.5% over the past 5 years.

Debt Coverage: FPH's debt is well covered by operating cash flow (291.8%).

Interest Coverage: FPH earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: FPH has a high level of physical assets or inventory.

Debt Coverage by Assets: FPH's debt is covered by short term assets (assets are 5.245390x debt).


Next Steps

Dividend

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

1.24%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%3.0%markettop25%5.6%industryaverage1.6%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FPH's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (3.02%).

High Dividend: FPH's dividend (1.24%) is low compared to the top 25% of dividend payers in the NZ market (5.61%).

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.


Current Payout to Shareholders

Dividend Coverage: FPH is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FPH's dividend in 3 years as they are not forecast to pay a notable one for the NZ market.


Next Steps

Management

What is the CEO of Fisher & Paykel Healthcare's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Lewis Gradon (58yo)

3.5yrs

Tenure

NZ$2,678,092

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. Mr. Gradon served as the Senior Vice  ...


CEO Compensation Analysis

Compensation vs. Market: Lewis's total compensation ($USD1.68M) is about average for companies of similar size in the NZ market ($USD1.34M).

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


Management Age and Tenure

3.2yrs

Average Tenure

Experienced Management: FPH's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

60.5yo

Average Age

Experienced Board: FPH's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyNZ$83,529,95518 Sep 19
Capital Research and Management Company
EntityCompany
Shares4,913,527
Max PriceNZ$17.00

Ownership Breakdown


Management Team

  • Lewis Gradon (58yo)

    MD, CEO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: NZ$2.68m
  • Paul Shearer

    Senior Vice President of Sales & Marketing

    • Tenure: 17.9yrs
  • Marcus Driller

    Vice President of Corporate

    • Tenure: 0yrs
  • Andrew Somervell

    Vice President of Products & Technology

    • Tenure: 3.5yrs
  • Debra Lumsden

    VP of Human Resources & Privacy Officer

    • Tenure: 2.8yrs
  • Rachel Reynolds

    Senior Communications Manager

    • Tenure: 0yrs
  • Lyndal York

    Chief Financial Officer

    • Tenure: 0.6yrs
  • Andrea Blackie

    General Manager of Finance

    • Tenure: 0.6yrs
  • Hayden Brown

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Lewis Gradon (58yo)

    MD, CEO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: NZ$2.68m
  • Mike Daniell (61yo)

    Non-Executive Director

    • Tenure: 17.9yrs
    • Compensation: NZ$115.70k
  • Donal O’Dwyer (66yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: NZ$157.16k
  • Neville Mitchell (60yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: NZ$52.70k
  • Scott St John

    Independent Non-Executive Director

    • Tenure: 4yrs
    • Compensation: NZ$143.80k
  • Geraldine McBride (58yo)

    Independent Non Executive Director

    • Tenure: 6.2yrs
    • Compensation: NZ$98.85k
  • Tony Carter (61yo)

    Board Chair

    • Tenure: 7.5yrs
    • Compensation: NZ$224.70k
  • Pip Greenwood

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: NZ$121.30k

Company Information

Fisher & Paykel Healthcare Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fisher & Paykel Healthcare Corporation Limited
  • Ticker: FPH
  • Exchange: NZSE
  • Founded: 1934
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: NZ$10.791b
  • Shares outstanding: 574.27m
  • Website: https://www.fphcare.com

Number of Employees


Location

  • Fisher & Paykel Healthcare Corporation Limited
  • 15 Maurice Paykel Place
  • East Tamaki
  • Auckland
  • 2013
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSPK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
FPHNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1992
FPHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
FPHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
FSPK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Fisher & Paykel Healthcare Corporation Limited, together with its subsidiaries, designs, manufactures, markets, and sells medical device products and systems. It provides its products for use in respirator ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 10:31
End of Day Share Price2019/10/15 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.