7733 JP

OLYMPUS CORP

Healthcare


Presented:11/26/2019
Price:¥1,676.00
Cap:$18.00B
Current Price:¥2,822.00
Cap:$27.48B

Presented

Date11/26/2019
Price¥1,676.00
Market Cap$18.00B
Ent Value$17.20B
P/E Ratio45.04x
Book Value¥281.29
Div Yield3.58%
Shares O/S1,285.57M
Ave Daily Vol4,495,663
Short IntN/A

Current

Price¥2,822.00
Market Cap$27.48B
Olympus Corp. is engaged in the manufacture and sale of precision machineries and instruments. It operates through the following segments: Medical Systems, Life Sciences and Industrial, Imaging Systems, Information and Communications, and Others. The Medical Systems segment covers endoscopes, and endoscopic surgery and therapy. The Life Sciences and Industrial segment manufactures and sells biological and industrial microscopes, industrial endoscopes, non-destructive testing equipment, and printers. The Imaging Systems segment deals with digital cameras and recording devices. The Information and Communication segment sells mobile terminals such as mobile phones. The Others segment includes biomaterial manufacturing and sales, and system development. The company was founded by Takeshi Yamashita on October 12, 1919 and is headquartered in Tokyo, Japan.

Publicly traded companies mentioned herein: Olympus Corp (7733 JP)

Highlights

The presenter is long shares of Olympus Corp (7733 JP), a Japanese manufacturer of optics and reprography products. On November 6th, the company announced the formulation of their new corporate strategy with the goal of attaining an operating profit margin of at least 20% by 2023. The presenter believes that if management stays true to its word and delivers, the company should be able to achieve Non-GAAP EBIT of 40% over the next three years. On a consolidated basis, the stock currently trades at ~12x EBITDA. The larger medtech group trades at 15x - 16x and has top line growth of 5% - 6%. Olympus’ top line growth should be 5% - 7% and there’s even more upside opportunity in the cost structure. He thinks there is 25% upside to what he describes as “messy” consensus earnings estimates for this year.

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