{"id":89,"date":"2009-05-27T16:27:36","date_gmt":"2009-05-27T14:27:36","guid":{"rendered":"http:\/\/www.blog.asmus-puhl.com\/?p=89"},"modified":"2009-06-04T18:41:13","modified_gmt":"2009-06-04T16:41:13","slug":"colfax-valuation","status":"publish","type":"post","link":"http:\/\/www.blog.asmus-puhl.com\/?p=89","title":{"rendered":"Colfax valuation"},"content":{"rendered":"

Yesterday Colfax’s stock (NYSE: CFX) traded at $ 8.35 <\/span><\/p>\n

Shares outstanding are 43.21 mil which translates into a market capitalization of $ 362 mil.<\/span><\/p>\n

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Analysts expect Colfax to grow 7% over the next years.<\/span><\/p>\n

Danaher’s growth rate over the past 10 years was 17.5% <\/span><\/p>\n

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I think that after a difficult year 2009 we can be slighty more optimistic than analysts and expect Colfax to grow at an 10% annual rate. <\/span><\/p>\n

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I would expect Colfax to acquire at least one company per year. <\/span><\/p>\n

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They have a strong balance sheet and with the economy in recession smaller companies will certainly be available at good prices. This should make acquisitions immediately accretive to earnings.<\/span><\/p>\n

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And don’t forget that Colfax’s earnings are still impacted by asbestos liabilities. It costs them about 40% of their earnings power this year. <\/span><\/p>\n

But those costs should rapidly decline over the next years.<\/span><\/p>\n

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Management expects EPS this year in the range of $ 1.00 \u2013 1.07 excluding the asbestos liabilities and costs.<\/span><\/p>\n

So with a 10% annual growth rate the company should at least earn $ 1.61 \/ share within 5 years.<\/span><\/p>\n

At a conservative p\/e ratio of 10 this means the share price should roughly double to $16.10 (I don’t expect a significant dilution of shareholders given the strong insider holdings). <\/span><\/p>\n

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I think at today’s prices we are able to invest in a very promising company with a significant margin of safety!<\/span><\/p>\n

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\u2026…..this blog will continue to keep an eye on Colfax!<\/span><\/p>\n

\n","protected":false},"excerpt":{"rendered":"

Yesterday Colfax’s stock (NYSE: CFX) traded at $ 8.35 Shares outstanding are 43.21 mil which translates into a market capitalization of $ 362 mil. Analysts expect Colfax to grow 7% over the next years. Danaher’s growth rate over the past 10 years was 17.5% I think that after a difficult year 2009 we can be […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[9,7,5,8,6],"_links":{"self":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/89"}],"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=89"}],"version-history":[{"count":16,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/89\/revisions"}],"predecessor-version":[{"id":104,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=\/wp\/v2\/posts\/89\/revisions\/104"}],"wp:attachment":[{"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=89"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=89"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.blog.asmus-puhl.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=89"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}