In This Article:
- By GF Value
The stock of Coloplast A/S (CHIX:COLOBC, 30-year Financials) gives every indication of being fairly valued, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. At its current price of DKK956.4 per share and the market cap of DKK202.7 billion, Coloplast A/S stock is believed to be fairly valued. GF Value for Coloplast A/S is shown in the chart below.
Because Coloplast A/S is fairly valued, the long-term return of its stock is likely to be close to the rate of its business growth, which averaged 6% over the past three years and is estimated to grow 6.20% annually over the next three to five years.
Link: These companies may deliever higher future returns at reduced risk.
It is always important to check the financial strength of a company before buying its stock. Investing in companies with poor financial strength have a higher risk of permanent loss. Looking at the cash-to-debt ratio and interest coverage is a great way to understand the financial strength of a company. Coloplast A/S has a cash-to-debt ratio of 0.16, which is in the bottom 10% of the companies in the industry of Medical Devices & Instruments. The overall financial strength of Coloplast A/S is 6 out of 10, which indicates that the financial strength of Coloplast A/S is fair. This is the debt and cash of Coloplast A/S over the past years:
It is less risky to invest in profitable companies, especially those with consistent profitability over long term. A company with high profit margins is usually a safer investment than those with low profit margins. Coloplast A/S has been profitable 10 over the past 10 years. Over the past twelve months, the company had a revenue of DKK18.5 billion and earnings of DKK20.18 a share. Its operating margin is 32.18%, which ranks better than 91% of the companies in the industry of Medical Devices & Instruments. Overall, the profitability of Coloplast A/S is ranked 8 out of 10, which indicates strong profitability. This is the revenue and net income of Coloplast A/S over the past years: