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) | 29.61 | 29.13 | 25.01 |
Price/Book Value | 7.98 | 3.23 | 7.03 |
Price/Sales | 3.33 | 1.74 | 4.80 |
Price/Cash Flow | 17.27 | 12.34 | 22.21 |
|
Metric
|
DEMANT
|
GN
|
SOON
|
|---|---|---|---|
Quick Ratio | 0.84 | 0.41 | 1.02 |
Current Ratio | 1.37 | 0.59 | 1.45 |
Interest Coverage | 6.91 | 3.99 | 23.78 |
|
Metric
|
DEMANT
|
GN
|
SOON
|
|---|---|---|---|
Return on Assets (Normalized) | 8.40% | 1.71% | 10.91% |
Return on Equity (Normalized) | 28.27% | 5.73% | 26.88% |
Return on Invested Capital (Normalized) | 12.19% | 3.07% | 17.63% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
ABT
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SYK
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MDT
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BSX
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EW
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DXCM
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PHG
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ZBH
| Zimmer Biomet Holdings Inc | Xdmxhdvrwz | Zgfx | $24.7 Bil | |
ALGN
| Align Technology Inc | Rpcsfhzss | Vhcfyy | $20.6 Bil | |
PODD
| Insulet Corp | Yrndnrvz | Ywdpf | $13.1 Bil |
