We maintain our fair value estimate for narrow-moat Demant following the release of its first-quarter results. The shares are modestly overvalued at their current level.
Approximately 16% of the world's population suffers from mild to severe hearing loss, and this is expected to grow to 20% during the next decade. Even in developed countries, hearing aid penetration rates only reach 20% on average.
The communications segment is struggling in both the gaming and professional lines.
|
Metric
|
DEMANT
|
GN
|
SOON
|
|---|---|---|---|
Price/Earnings (Normalized) | 28.32 | 26.67 | 22.45 |
Price/Book Value | 7.63 | 2.96 | 7.56 |
Price/Sales | 3.19 | 1.60 | 4.39 |
Price/Cash Flow | 16.51 | 11.30 | 20.77 |
|
Metric
|
DEMANT
|
GN
|
SOON
|
|---|---|---|---|
Quick Ratio | 0.84 | 0.41 | 0.76 |
Current Ratio | 1.37 | 0.59 | 1.29 |
Interest Coverage | 6.91 | 3.99 | 29.18 |
|
Metric
|
DEMANT
|
GN
|
SOON
|
|---|---|---|---|
Return on Assets (Normalized) | 8.40% | 1.71% | 11.96% |
Return on Equity (Normalized) | 28.27% | 5.73% | 30.61% |
Return on Invested Capital (Normalized) | 12.19% | 3.07% | 22.85% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
ABT
| Abbott Laboratories | Hntbqbk | Xcqdjfk | $182.6 Bil | |
SYK
| Stryker Corp | Lqqjyjmm | Nytsf | $123.6 Bil | |
MDT
| Medtronic PLC | Xscsmpjdn | Wgfvhxb | $108.3 Bil | |
BSX
| Boston Scientific Corp | Xbvlrgth | Kybwrwd | $107.0 Bil | |
EW
| Edwards Lifesciences Corp | Xchbtxqnc | Cxjkcd | $51.0 Bil | |
DXCM
| DexCom Inc | Rvcdymwcd | Ryyr | $50.3 Bil | |
ZBH
| Zimmer Biomet Holdings Inc | Hzgsfswb | Hsgk | $24.6 Bil | |
PHG
| Koninklijke Philips NV ADR | Syxpbvnbz | Dyhgjn | $24.3 Bil | |
ALGN
| Align Technology Inc | Lfxkvrj | Hwwpp | $20.5 Bil | |
PODD
| Insulet Corp | Nftyhtck | Pfkty | $12.4 Bil |
