David Driscoll
Cantel Madical Corp
CMD-N
TOP PICK
Mar 21, 2019
Water sterilization and dental equipment in hospitals. The demand is always going to be there. Stock has fallen in half. Good entry point. Business is growing at 5-6% per year. (Analysts’ price target is $101.00)
Essentially a water sterilization company for hospitals and dental offices. Their latest acquisition was to double down in dental. Right now, it's in the $69 and value is there. It's grown dividends by 20% per year.
Organic growth is roughly 5%; the medical segment was 10% this year. They have a long runway ahead. Tuck-in acquisitions are important, too, because it increases market share if they buy a competitor. Free cash flows are rising so the dividend can grow 15% a year; invest in R&D; and the rest in acquisitions. Now is a good entry point.