Cantel Medical Corporation provides infection prevention and control products and services in the healthcare market. The company operates in 5 segments: Endoscopy, Water Purification and Filtration, Healthcare Disposables, Dialysis, Specialty Packaging. The company was founded in 1963 and is based in Little Falls, New Jersey.
CMD Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CMD, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cantel Medical Corp ranked in the 25th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for CMD, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 64. Its equity weight surpasses that of merely 20.22% of free cash flow generating stocks in the Healthcare sector.
The business' balance sheet suggests that 36% of the company's capital is sourced from debt; this is greater than 57.46% of the free cash flow producing stocks we're observing.
CMD's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 6%; for context, that number is higher than 43.21% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CMD, try BAX, SNN, TMO, HOLX, and WAT.
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Cantel Medical Corp. (CMD) Q3 2020 earnings call dated Jun. 04, 2020 Corporate Participants: Matthew Micowski — Vice President, FP&A and Investor Relations George L. Fotiades — President and Chief Executive Officer Shaun Blakeman — Senior Vice President and Chief Financial Officer Seth Yellin — Executive Vice President and Chief Growth Officer Peter Clifford — Executive Vice President and Chief Operating Officer Analysts: Larry Keusch — Raymond […]
In this article you are going to find out whether hedge funds think Cantel Medical Corp. (NYSE:CMD) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]
Last Friday's jobs-report surprise prompted a question at Needham: Which stocks, across the coverage, were most leveraged to an economic recovery? The top 10 they come up with have medtech and technology names well represented. On medtech, it notes Cantel Medical (CMD) looks closely tied to an economic resurgence, thanks...