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.

Rewards

Earnings are forecast to grow 17.45% per year

Earnings have grown 15.1% per year over the past 5 years

Risk Analysis

No risks detected for FPH from our risk checks.


Snowflake Analysis

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

Stable Share Price: FPH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.0%

FPH

5.6%

NZ Medical Equipment

3.2%

NZ Market


1 Year Return

81.3%

FPH

26.6%

NZ Medical Equipment

-8.1%

NZ Market

Return vs Industry: FPH exceeded the NZ Medical Equipment industry which returned 25.2% over the past year.

Return vs Market: FPH exceeded the NZ Market which returned -8.1% over the past year.


Shareholder returns

FPHIndustryMarket
7 Day7.0%5.6%3.2%
30 Day11.7%-9.5%-17.1%
90 Day27.7%-7.8%-20.0%
1 Year84.4%81.3%28.9%26.6%-4.8%-8.1%
3 Year210.4%193.5%68.9%60.7%26.2%10.5%
5 Year380.4%334.0%133.2%112.4%58.2%23.6%

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?

70.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FPH (NZ$28.47) is trading above our estimate of fair value (NZ$22.37)

Significantly Below Fair Value: 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 (70.1x) compared to the Medical Equipment industry average (23.6x).

PE vs Market: FPH is poor value based on its PE Ratio (70.1x) compared to the NZ market (14.8x).


Price to Earnings Growth Ratio

PEG Ratio: FPH is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: FPH is overvalued based on its PB Ratio (17.8x) compared to the XO Medical Equipment industry average (3.2x).


Next Steps

Future Growth

How is Fisher & Paykel Healthcare forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FPH's forecast earnings growth (17.4% per year) is above the savings rate (1.3%).

Earnings vs Market: FPH's earnings (17.4% per year) are forecast to grow faster than the NZ market (10.1% per year).

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

Revenue vs Market: FPH's revenue (13.4% per year) is forecast to grow faster than the NZ market (6.4% per year).

High Growth Revenue: FPH's revenue (13.4% 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 (32.9%)


Next Steps

Past Performance

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

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FPH has high quality earnings.

Growing Profit Margin: FPH's current net profit margins (20.6%) are higher than last year (20%).


Past Earnings Growth Analysis

Earnings Trend: FPH's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: FPH's earnings growth over the past year (12.9%) is below its 5-year average (15.1% per year).

Earnings vs Industry: FPH earnings growth over the past year (12.9%) underperformed the Medical Equipment industry 14.3%.


Return on Equity

High ROE: FPH's Return on Equity (25.4%) is considered high.


Next Steps

Financial Health

How is Fisher & Paykel Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: FPH's short term assets (NZ$412.0M) exceed its short term liabilities (NZ$199.6M).

Long Term Liabilities: FPH's short term assets (NZ$412.0M) exceed its long term liabilities (NZ$136.7M).


Debt to Equity History and Analysis

Debt Level: FPH's debt to equity ratio (10.8%) is considered satisfactory.

Reducing Debt: FPH's debt to equity ratio has reduced from 24.6% to 10.8% over the past 5 years.

Debt Coverage: FPH's debt is well covered by operating cash flow (276.7%).

Interest Coverage: FPH's interest payments on its debt are well covered by EBIT (3119x coverage).


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 4.2x debt).


Next Steps

Dividend

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

0.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FPH's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (3.6%).

High Dividend: FPH's dividend (0.82%) is low compared to the top 25% of dividend payers in the NZ market (7.93%).


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.


Current Payout to Shareholders

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


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

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

3.6yrs

Average management tenure


CEO

Lewis Gradon (58yo)

3.92s

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 ($USD1.62M) is below average for companies of similar size in the NZ market ($USD3.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lewis Gradon
MD, CEO & Executive Director3.92yrsNZ$2.68m0.11% NZ$17.2m
Lyndal York
Chief Financial Officer1yrno datano data
Andrew Somervell
Vice President of Products & Technology3.92yrsno data0.012% NZ$1.9m
Hayden Brown
Investor Relations Managerno datano datano data
Rachel Reynolds
Senior Communications Managerno datano datano data
Paul Shearer
Senior Vice President of Sales & Marketing18.33yrsno data0.071% NZ$11.5m
Debra Lumsden
VP of Human Resources & Privacy Officer3.25yrsno datano data
Marcus Driller
Vice President of Corporateno datano datano data
Andrea Blackie
General Manager of Finance1yrno datano data

3.6yrs

Average Tenure

Experienced Management: FPH's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lewis Gradon
MD, CEO & Executive Director3.92yrsNZ$2.68m0.11% NZ$17.2m
Michael Daniell
Non-Executive Director18.33yrsNZ$115.70k0.17% NZ$27.7m
Donal O'Dwyer
Independent Non-Executive Director7.25yrsNZ$157.16k0.012% NZ$2.0m
Neville Mitchell
Independent Non-Executive Director1.33yrsNZ$52.70k0.0013% NZ$204.5k
Scott St John
Independent Non-Executive Director4.42yrsNZ$143.80k0.0031% NZ$498.9k
Geraldine McBride
Independent Non Executive Director6.58yrsNZ$98.85k0.00022% NZ$36.0k
Antony Carter
Chairman7.92yrsNZ$224.70k0.013% NZ$2.2m
Philippa Greenwood
Non-Executive Director2.75yrsNZ$121.30k0.00066% NZ$108.0k

5.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: FPH's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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.


Top Shareholders

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$16.358b
  • Shares outstanding: 574.56m
  • 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 respiratory care, acute care, and surgery, as well as the treatment of obstructive sleep apnea (OSA) in the home and within the hospital. The company offers adult respiratory products, including AIRVO 2 system, a humidifier with integrated flow source; Optiflow, a nasal high flow therapy; and noninvasive and invasive ventilation systems. It also provides infant respiratory products, such as resuscitation, invasive ventilation, continuous positive airway pressure (CPAP) therapy, and nasal high flow therapy products. In addition, the company offers hospital products comprising humidification products, breathing circuits, chambers, masks, nasal cannulas, accessories, and interfaces; and homecare products that include masks, CPAP devices, data management products, humidifiers, and accessories. It has operations in North America, Europe, the Asia Pacific, and internationally. The company was founded in 1934 and is headquartered in Auckland, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 10:33
End of Day Share Price2020/03/27 00:00
Earnings2019/09/30
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.