Liberty Posted July 23, 2019 Share Posted July 23, 2019 The new DHR dental spin-off: https://www.sec.gov/Archives/edgar/data/1757073/000175707319000010/envistas-1prospectus.htm#s7C2B0340317C5505B4711274C2AF30D8 A few thoughts/observations I had here: Link to comment Share on other sites More sharing options...
chrispy Posted July 25, 2019 Share Posted July 25, 2019 Thanks for sharing. After last night's earning release Align may be much cheaper today Link to comment Share on other sites More sharing options...
Broeb22 Posted July 25, 2019 Share Posted July 25, 2019 I'm definitely interested in this one. Both Envista and Align earn similar returns on capital but Align is growing much faster (though decelerating due to patent loss). I'm trying to think about how to value Envista relative to a company like Align. What is that extra growth (and likely better business quality) worth? Link to comment Share on other sites More sharing options...
dwy000 Posted July 25, 2019 Share Posted July 25, 2019 Well at first glance you can certainly see why Danaher is spinning this off. Revenue growth is pretty much zero (or negative) and operating earnings in 2018 were below those of 2014 (and continue to decline in 1Q). I'm not sure what turns this around given the competition in the space. Invisilign type products are hugely popular and growing but are rapidly becoming a commodity that will not only compete on price but likely cannibalize more expensive, higher margin procedures. I can't wait to see where this trades out of the blocks. Link to comment Share on other sites More sharing options...
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