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ICU Medical Inc ICUI

Morningstar Rating
$103.59 +0.64 (0.62%)
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Company Report

ICU Working to Improve Margins After Smiths Acquisition Setbacks

With roots as a supplier of infusion consumables, ICU enhanced its product mix through the transformative acquisition of Hospira Infusion Systems from Pfizer in 2017 by bringing infusion pumps, a broader consumables offering, and IV solutions manufacturing into the fold. The firm has become a more complete provider with the acquisition of the Smiths Medical division (various IV-related products and other medical supplies) in 2022. In our view, ICU’s focus on building a more comprehensive portfolio adds to the long-term stability of its revenue mix thanks to lengthy contracts and a hallmark razor-and-blade model in its systems business. We think unrivaled scale in consumables may help it to generate excess returns eventually, though its portfolio has lost differentiation. In infusion systems, although we believe ICU faces an uphill battle in competing with leader Becton Dickson, we believe this space offers an attractive opportunity to exploit high switching costs in this industry.

Price vs Fair Value

ICUI is trading at a 42% discount.
Price
$102.95
Fair Value
$892.00
Uncertainty
High
1-Star Price
$715.71
5-Star Price
$541.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Management has done an impressive job deepening ICU's consumables portfolio through acquisitions and bolstering its market leading position in this attractive end market.

Bears

ICU could face further delays to the Smith’s integration which would dent investor trust in long-term guidance and potentially reveal undisclosed problems with the newly acquired business.

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News

Trading Information

Previous Close Price
$102.95
Day Range
$102.64104.31
52-Week Range
$78.28212.43
Bid/Ask
$103.40 / $166.00
Market Cap
$2.50 Bil
Volume/Avg
209,719 / 403,993

Key Statistics

Price/Earnings (Normalized)
14.66
Price/Sales
1.06
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

ICU Medical is a California-based, pure-play infusion therapy company that provides consumables, systems, and services for virtually every component of the IV continuum of care. ICU has become one of the largest players in its industry following its acquisition of Hospira Infusion Systems from Pfizer in 2017, and Smiths Medical from Smiths Group in 2022. It holds top-tier positions in its original reporting segments: infusion consumables (25% of 2022 revenue), IV solutions (16%), infusion systems (15%), and critical care (2%) as well as its new Smiths segments: Smiths infusion systems (15%), vascular access (14%), and vital care (12%). The combined entity remains primarily U.S. focused, generating over 64% of its sales domestically.
Sector
Healthcare
Industry
Medical Instruments & Supplies
Stock Style Box
Small Core
Total Number of Employees
14,500

Competitors

Valuation

Metric
ICUI
BDX
BAX
Price/Earnings (Normalized)
14.6620.0214.68
Price/Book Value
1.142.722.39
Price/Sales
1.063.551.35
Price/Cash Flow
8.1821.2313.99
Price/Earnings
ICUI
BDX
BAX

Financial Strength

Metric
ICUI
BDX
BAX
Quick Ratio
0.830.460.91
Current Ratio
2.631.081.48
Interest Coverage
0.294.170.66
Quick Ratio
ICUI
BDX
BAX

Profitability

Metric
ICUI
BDX
BAX
Return on Assets (Normalized)
0.54%3.40%4.63%
Return on Equity (Normalized)
1.15%7.05%19.64%
Return on Invested Capital (Normalized)
2.52%5.04%6.97%
Return on Assets
ICUI
BDX
BAX
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