{"id":2079,"date":"2019-05-10T18:17:42","date_gmt":"2019-05-10T16:17:42","guid":{"rendered":"http:\/\/www.blog.asmus-puhl.com\/?p=2079"},"modified":"2019-05-10T18:17:42","modified_gmt":"2019-05-10T16:17:42","slug":"colfax-corp-continues-the-transformation-process-of-the-company","status":"publish","type":"post","link":"http:\/\/www.blog.asmus-puhl.com\/?p=2079","title":{"rendered":"Colfax Corp. continues the transformation process of the company"},"content":{"rendered":"\n<p>Colfax Corp. (NYSE: CFX) <a rel=\"noreferrer noopener\" aria-label=\"released Q1 2019 results (opens in a new tab)\" href=\"https:\/\/finance.yahoo.com\/news\/colfax-reports-first-quarter-2019-103000159.html\" target=\"_blank\">released Q1 2019 results.<\/a><\/p>\n\n\n\n<p>After the acquisition of\nDJO Global completed in February 2019 Colfax is now a company which\noperates in 3 segments:<\/p>\n\n\n\n<p>Orthopedics, Fabrication Technology and Air &amp; Gas Handling<\/p>\n\n\n\n<p>Adjusted earnings were $\n0.53 , 10.4% higher than in the year ago quarter.<\/p>\n\n\n\n<p>The\nmajor contribution to the 14.4% revenue growth this quarter came from\nthe acquired orthopedics business growing 19.2% in comparison to the\n1.6% growth in existing businesses.<\/p>\n\n\n\n<p>CEO\nTrerotola pointed out on the conference call that \u201eDJO launched six\nnew products in the first quarter that will contribute to an\nimproving growth trajectory later this year and in 2020\u201c.\n\n<\/p>\n\n\n\n<p>But\nhe also pointed out that Colfax \u201emade\nsignificant improvements in the Air &amp; Gas Handling business that\nare now leading through with consistent growth in orders and margins\nand the business is expected to return to top-line growth in the\nsecond half.\u201c \n<\/p>\n\n\n\n<p>As\nColfax intends to sell this business this certainly helps to get a\nbetter price.<\/p>\n\n\n\n<p>The\nbalance sheet quality deteriorated. Long-term\ndebt balance increased substantially to $4,037.1 million from\n$1,192.4 million in the previous quarter as Colfax already bought DJO\nGlobal but did not sell yet the Air&amp;Gas Handling business.<\/p>\n\n\n\n<p>But\nthis can be expected within the next several months and the balance\nsheet will improve.<\/p>\n\n\n\n<p>This means for investors that the transformation process of Colfax will most likely continue for a couple of quarters more.<\/p>\n\n\n\n<p>Will\nmanagement be able to transform DJO Global into a growth story? \n<\/p>\n\n\n\n<p>Will\nfabrication technology continue to be a slow grower?<\/p>\n\n\n\n<p>For\n2019 Colfax anticipates adjusted earnings of $ 2.55-$2.65 .<\/p>\n\n\n\n<p>At\ntoday&#8217;s price of $26.77 this translates into a p\/e ratio of just 10 !<\/p>\n\n\n\n<p>This\nlooks cheap but Colfax still isn&#8217;t the growth story it once has been.\n\n<\/p>\n\n\n\n<p>Even\nif this 1<sup>st<\/sup>\nquarter has been solid, investors should wait until more signs of\nimprovement emerge. Until then Colfax remains a hold! \n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Colfax Corp. (NYSE: CFX) released Q1 2019 results. After the acquisition of DJO Global completed in February 2019 Colfax is now a company which operates in 3 segments: Orthopedics, Fabrication Technology and Air &amp; Gas Handling Adjusted earnings were $ 0.53 , 10.4% higher than in the year ago quarter. The major contribution to the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/2079"}],"collection":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2079"}],"version-history":[{"count":4,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/2079\/revisions"}],"predecessor-version":[{"id":2083,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/2079\/revisions\/2083"}],"wp:attachment":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2079"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}