Mentioned
Coloplast B A/S
COLO-B.CO
2.50 (0.60%)
418.60
418.90
Fabian Schneider
Fabian Schneider
Germany
1mo
𝐖𝐑𝐲 𝐈 𝐒𝐧𝐯𝐞𝐬𝐭𝐞𝐝 𝐒𝐧 𝐂𝐨π₯𝐨𝐩π₯𝐚𝐬𝐭 One of the more interesting healthcare opportunities in our portfolio right now is Coloplast. I invested in Coloplast because I believe this is the kind of company that can create value over decades. A strong market position, products that are often essential for patients and a business supported by longterm demographic trends. Coloplast is the global market leader in Ostomy and Continence Care, while also having strong positions in wound care, urology and voice & respiratory care. Its addressable market is growing around 4–5% annually, mainly driven by ageing populations and expanding healthcare coverage. What makes Coloplast very interesting to me is the company's ability to grow above the underlying market. Its longterm strategy targets 7–8% organic revenue growth through 2030, while maintaining strong profitability and improving ROIC to above 20%. π“π‘πž π’π­π¨πœπ€ 𝐠𝐨𝐭 𝐑𝐒𝐭 𝐑𝐚𝐫𝐝 Yes, and thats why we jumped in. The recent weakness in the share price is actually one of the main reasons I find the stock attractive today. The market is currently focusing heavily on the problems surrounding Kerecis and the slower growth outlook. But I believe it is important to look beyond the next few quarters. And then there is the dividend! At the current share price, the DKK 23 annual dividend represents a dividend yield of roughly 5–6%. The dividend has also continued to increase over the last three financial years. What I also like is that Coloplast targets a 60–80% payout ratio over the longterm. So the current high yield doesn't necessarily mean the dividend has become unsustainable. For me, the investment case is therefore not about expecting Coloplast to suddenly double its earnings. It is about owning a high-quality healthcare company with structural market growth, strong competitive positions, innovation and an increasingly attractive dividend. If Coloplast can achieve its longterm growth ambitions, today's depressed share price could offer an interesting combination of capital appreciation + growing dividend income over the next 10–15 years. That's exactly the kind of investment I am looking for! $COLO-B.CO (Coloplast B A/S)
Not investment advice. The author may have financial interests in the mentioned instruments.
1 Mentioned
Coloplast B A/S
COLO-B.CO
Coloplast B A/S
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