1-Star Price
PREMIUM
5-Star Price
PREMIUM
Economic Moat
PREMIUM
Capital Allocation
PREMIUM
Narrow-moat-rated Colfax ended 2020 on a solid note, as its fourth-quarter adjusted EPS of $0.51 came in a penny above the FactSet consensus estimate. After rolling our model forward one year, we’ve increased our fair value estimate to $41 from $36, which reflects the firm's solid execution, our more optimistic near-term revenue growth projections, as well as time value of money.
Colfax is a diversified technology firm that produces welding equipment and medical devices. Following the sale of its air and gas handling business in 2019, Colfax’s remaining portfolio is organized into two segments: fabrication technology and medical technology. Fabrication technology is a leading manufacturer of equipment and consumables used in welding, cutting, and joining applications, mostly marketed under the ESAB brand name. The medical technology segment makes medical devices, including orthopedic braces, reconstructive implants, and other products used for rehabilitation, physical therapy, and pain management. The company generated roughly $3.1 billion in revenue in 2020.
