David Driscoll
Cantel Madical Corp
CMD-N
BUY
Oct 11, 2019
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.
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)
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.