The Australian Competition & Consumer Commission has approved wide-moat Cochlear’s acquisition of Oticon’s cochlear implants business. We had expected this to proceed and maintain our AUD 220 fair value and earnings estimates.
There are signs Cochlear is looking to expand beyond the hearing market with the investment in Nyxoah, a company focused on development of a hypoglossal nerve stimulation therapy for the treatment of obstructive sleep apnea.
Growth in the cochlear implant market is becoming more costly to achieve, limiting the potential upside to earnings.
|
Metric
|
COH
|
RMD
|
SOON
|
|---|---|---|---|
Price/Earnings (Normalized) | 57.92 | 28.56 | 21.41 |
Price/Book Value | 11.90 | 6.51 | 7.21 |
Price/Sales | 9.90 | 6.67 | 4.19 |
Price/Cash Flow | 49.42 | 23.99 | 19.80 |
|
Metric
|
COH
|
RMD
|
SOON
|
|---|---|---|---|
Quick Ratio | 1.80 | 1.32 | 0.76 |
Current Ratio | 2.57 | 3.04 | 1.29 |
Interest Coverage | 50.97 | 22.63 | 29.18 |
|
Metric
|
COH
|
RMD
|
SOON
|
|---|---|---|---|
Return on Assets (Normalized) | 14.09% | 15.75% | 11.96% |
Return on Equity (Normalized) | 20.32% | 24.94% | 30.61% |
Return on Invested Capital (Normalized) | 17.67% | 19.33% | 22.85% |
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Ticker
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Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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