A
Agilent Technologies Inc
Healthcare
11/27/2017
Presented
| Date | 11/20/2017 |
| Price | $69.96 |
| Market Cap | $22.81B |
| Ent Value | $19.01B |
| P/E Ratio | 36.06x |
| Book Value | $14.31 |
| Div Yield | 0.51% |
| Shares O/S | 326.00M |
| Ave Daily Vol | 1,497,988 |
| Short Int | 0.94% |
Current
| Price | $144.58 |
| Market Cap | $41.54B |
| Agilent Technologies, Inc. engages in the provision of core bio-analytical and electronic measurement solutions to the life sciences, chemical analysis, communications and electronics, diagnostics and genomics industries. It operates through the following segments: Life Sciences; Chemical Analysis; Diagnostics and Genomics; and Electronic Measurement. The Life Sciences segment provides application-focused solutions that include instruments, software, consumables and services that enable customers to identify, quantify and analyze the physical and biological properties of substances and products. The Chemical Analysis segment manufactures gas chromatography mass spectrometry systems, inductively coupled plasma mass spectrometry instruments, atomic absorption instruments, inductively coupled plasma optical emission spectrometry instruments, molecular spectroscopy instruments, vacuum pumps and measurement technologies supports and services. The Diagnostics and Genomics segment provides solutions that include reagents, instruments, software and consumables that enable customers in the clinical and life sciences research areas to interrogate samples at the molecular level. The Electronic Measurement segment provides electronic measurement instruments and systems, software design tools and related services that are used in the design, development, manufacture, installation, deployment and operation of electronics equipment and microscopy products. The company was founded in 1999 and is headquartered in Santa Clara, CA. |
Please note, A reported FY ‘17 results on November 20, after the close. All figures herein reflect expectations prior to the earnings release.
Publicly traded companies mentioned herein: Agilent Technologies Inc (A), Danaher Corporation (DHR), Mettler-Toledo International Inc (MTD), Quest Diagnostics Inc (DGX), Roche Holdings AG (RHHBY)
Highlights
The trifecta of accelerating organic growth, margin expansion, and capital deployment optionality makes Agilent Technologies (A) a timely and attractive investment, in the presenter’s opinion. He is long at $70/ share, and sees fundamentals improving ahead of Street expectations over the next 2-3 years as product cycles run their respective courses. Based on his model, the top line can grow at an 8-9% CAGR, and “huge" margin flow through could drive mid-teens EBIT and 20% EPS growth. In this scenario, FCF per share - which is interchangeable with EPS in this case - could jump to $4.25 in 2020 (up from ~$2.20/ share today), and assuming a potentially conservative 25x multiple suggests there is upside to $106 (for a 25% IRR over two years).
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