SIRO
Sirona Dental Systems Inc.
Healthcare
12/16/2013
Presented
| Date | 12/11/2013 |
| Price | $67.35 |
| Market Cap | $3.70B |
| Ent Value | $3.54B |
| P/E Ratio | 28.97x |
| Book Value | $22.96 |
| Div Yield | N/A |
| Shares O/S | 55.01M |
| Ave Daily Vol | 490,000 |
| Short Int | 1.91% |
Current
| Price | $109.97 |
| Market Cap | $6.16B |
| Sirona Dental Systems, Inc., together with its subsidiaries, develops, manufactures, and markets dental equipment for dentists worldwide. It operates in four segments: Dental CAD/CAM Systems, Imaging Systems, Treatment Centers, and Instruments. The Dental CAD/CAM Systems segment addresses the market for various dental restorations, such as inlays, onlays, veneers, crowns, bridges, copings, and bridge frameworks made from ceramic, metal, or composite blocks. This segment offers the CEramic REConstruction, an in-office application that enables dentists to produce restorations from ceramic material and insert them into the patient’s mouth during a single appointment; the inLab restoration fabrication systems and the extra-oral inEos scanners for dental laboratories; and central manufacturing services for copings and bridge-frameworks. The Imaging Systems segment provides a range of digital equipment for diagnostic imaging in the dental practice. This segment develops imaging systems for 2D and 3D, panoramic, and intra-oral applications. The Treatment Centers segment offers various products from basic dentist chairs to chair-based units with integrated diagnostic, hygiene, and ergonomic functionalities, as well as specialist centers used in preventative treatment and for training purposes. The Instruments segment provides handheld and power-operated handpieces for cavity preparation, endodontics, periodontology, and prophylaxis, as well as multi function tips, supply and suction hoses, and care and hygiene systems for instrument preparation. The company distributes its products to dental practices, clinics, and laboratories through an international network of approximately 440 distributors. Sirona Dental Systems, Inc. was founded in 1882 and is headquartered in Long Island City, New York. |
Highlights
The presenter has been long shares of Sirona (SIRO) for some time, and expressed disappointment about the underwhelming performance of the stock in 2013 (up just 4% YTD). However, he likes the way the industry leader in chairside, digital dentistry is set up heading into the New Year, and sees the potential for the company to earn at least 10%-15% more (per-share) than the Street is expecting. If his thesis is correct, SIRO shares could trade up to the $90 level over the next 12-18 months (18x his base-case 2015 EPS estimate of $5.00).
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