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Carl Zeiss Meditec AG AFX

Morningstar Rating
€94.90 +1.95 (2.10%)
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Company Report

Carl Zeiss Earnings: Tough Results as Sales and Margin Slip but Better Second Half Awaits

Narrow-moat Carl Zeiss reported second-quarter earnings that came in slightly below our expectations. Total sales of EUR 472 million were down 6.4% year over year as inventory destocking and unfavorable foreign-exchange headwinds offset solid demand in Europe, Middle East, and Africa. After updating our full-year assumptions, we maintain our fair value estimate of EUR 82 per share, as our slightly trimmed near-term outlook was immaterial due to time value of money impact.

Price vs Fair Value

AFX is trading at a 364% premium.
Price
€94.90
Fair Value
€55.00
Uncertainty
Medium
1-Star Price
€955.70
5-Star Price
€93.60
Economic Moat
Lskxtf
Capital Allocation
Nnbmjfrz

Bulls Say, Bears Say

Bulls

Favorable industrywide trends, such as the aging population, an increasing prevalence of myopia, and a growing access to advanced healthcare across the globe, will act as tailwinds for Zeiss.

Bears

The US represents Zeiss’ second-largest market and the company’s limited portfolio of intraocular lenses and a weak presence in the surgical space in the region is further threatened by its competitors.

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Trading Information

Previous Close Price
€92.95
Day Range
€91.8594.90
52-Week Range
€72.60123.75
Bid/Ask
€0.00 / €0.00
Market Cap
€8.49 Bil
Volume/Avg
117,114 / 132,267

Key Statistics

Price/Earnings (Normalized)
30.48
Price/Sales
4.02
Dividend Yield (Trailing)
1.16%
Dividend Yield (Forward)
1.16%
Total Yield
1.16%

Company Profile

Carl Zeiss Meditec is one of the largest medical technology companies in the world and it operates in two segments: Ophthalmic devices and Microsurgery. OPT, which made up 75% of sales in 2022, includes refractive lasers, surgical ophthalmic devices, equipment for ophthalmic diagnostics, as well as a portfolio of intraocular lenses and disposable medical instruments. With a low-teens share of the market, Zeiss is the second-largest player in the space. MCS is composed of implants, surgical instruments, and visualization devices used during neurosurgery, spine surgery, and otolaryngology surgery. With over 60% market share, Zeiss is the clear leader in the microsurgery space.
Sector
Healthcare
Industry
Medical Instruments & Supplies
Stock Style Box
Mid Growth
Total Number of Employees
4,950

Competitors

Valuation

Metric
AFX
JNJ
Price/Earnings (Normalized)
30.4814.75
Price/Book Value
3.975.30
Price/Sales
4.024.33
Price/Cash Flow
25.5616.67
Price/Earnings
AFX
JNJ

Financial Strength

Metric
AFX
JNJ
Quick Ratio
2.340.84
Current Ratio
3.511.17
Interest Coverage
19.1823.57
Quick Ratio
AFX
JNJ

Profitability

Metric
AFX
JNJ
Return on Assets (Normalized)
12.64%
Return on Equity (Normalized)
31.72%
Return on Invested Capital (Normalized)
20.11%
Return on Assets
AFX
JNJ
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